Capex Data
Range Resources Corporation set a $1.065 billion capital budget has been set for 2008. This represents an 18% increase over 2007 expenditures. The 2008 budget includes $783 million for drilling and recompletions, $109 million for land, $51 million for seismic and $122 million for the expansion and enhancement of gathering systems and facilities. Of the drilling and recompletion capital, 95% is attributable to lower risk development and exploitation activities, and 5% is attributable to exploration projects. Acquisitions, particularly those in proximity to existing properties, will continue to be pursued but are considered too unpredictable to be specifically budgeted. Based on the current futures prices and existing hedges, 2008 capital spending is expected to be funded by operating cash flow and asset sales.
In April 2008, Range announced an increase in the 2008 capital expenditure budget by $200 million to $1.27 billion. The capital budget increase is primarily associated with expanding the Company's leasehold position in the Marcellus Shale play in Appalachia. In addition, the Company increased its 2008 production growth target from 15% to 19%.
Future Plans
In 2008, Range expects to drill 968 gross (715 net) wells and undertake 82 (66 net) recompletions. Approximately 56% of the capital budget is attributable to the Southwestern region, 40% to the Appalachian region and 4% to the Gulf Coast region. Included in the budget are 187 net CBM, tight gas and shale wells at the Nora/Haysi field in Virginia, 92 net Barnett Shale wells in the Fort Worth Basin and 60 net Marcellus Shale wells in Appalachia. The remaining 376 net wells are primarily tight gas and oil wells in the Company's other core areas.