Range Resources Shows Results for 5-well Pads

Range Resources Shows Results for 5-well Pads

Range Resources (NYSE: RRC) focuses operations in the Southern Marcellus and Northern Louisiana plays having over 1 million net surface acres. In the third quarter the company closed the merger with Memorial Resources Development adding acreage in Northern Louisiana and expanding their reach. The Range team focused on their use of pad development in the Marcellus in the third quarter conference call showing efficiencies and cost reductions.

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Source: Range Resources

Proven Results with Pad Development

There are about 230 pads in Ranges inventory that could be potentially drilled on both new and existing pads. Drilling new wells on existing pads represents cost savings by using infrastructure that is already in place. The majority of the inventory consist of pads with five or less wells and the rest are between 6 and 9 wells per pad. In 2017 Range expects about a third of the company’s wells will be drilled on existing pads and that could increase to around half in 2018. It is estimated that their average lateral length with be around 8,000 feet next year and continue to grow.

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Source: Energent Group

In Range’s wet area they estimated that they can drill and complete a four well pad with laterals of 9,000 feet and 45 stages for $7.2 million per well which would be about $1 million less than peers when normalized. They currently are drilling a seven well pad with average laterals of 10,700 feet which will be completed in early 2017. Above is an image of one of Range’s seven well pads that is being developed in Southwestern Pennsylvania. Most of the company’s larger pads the moment have been in Washington and Lycoming counties.

Water Management Lowers LOE

Range Resources has said they have seen their LOE drop by 35% year to date which they attribute to long term relationships with vendors, reduction in man power and in reducing water handling costs. Range has reduced their water handling costs by using produced water to use in their completions. This in turn has reduced the company’s CAPEX for water by $20 million this year. The image below represents Range Resources inventory of pads in the Southwest Marcellus.

enter image description hereSource: Range Resources

Halliburton and Calfrac Split Completion Work

In 2016 Range Resources has been using a mix of pressure pumpers with Halliburton and Calfrac performing 75% of the frac jobs in the Marcellus compared to 2015 where FTSI was their major pressure pumper performing about 80% of all the work in the basin. To date they have performed 91 jobs averaging 8.1 million pounds of proppant per job using all raw sand

Proppant DistributionSource: Energent Group

 

 

For more details on operator activity, pad trends, and completion activity try Energent Group’s research tools.

 

 

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