Range Resources Corporation and MarkWest Energy Partners, L.P. today announced their agreement for MarkWest to construct and operate gas gathering pipelines and processing facilities associated with Range's Marcellus Shale acreage in the Appalachian Basin. MarkWest expects to invest approximately $50 million in 2008 and anticipates investing up to an additional $125 million in 2009 based on projects currently being developed.
"We are very pleased to announce this arrangement with MarkWest Energy Partners," said John Pinkerton, Chairman of the Board and Chief Executive Officer of Range Resources. "Range has well over one million net acres in the Marcellus play. Having the pipeline and processing infrastructure in place will be important for us to develop the reserve potential of the play. Given our continued drilling success in the Marcellus and the MarkWest arrangement, we anticipate selling material quantities of natural gas by the first quarter 2009. MarkWest has a proven track record of supporting producers in the development of shale plays, and we look forward to partnering with them."
"We are excited about this agreement and our strategic relationship with Range Resources," said Frank Semple, President and Chief Executive Officer of MarkWest Energy Partners. "The Marcellus Shale is one of the most exciting new natural gas plays in the U.S., and Range is leading the development of this important resource. This gathering and processing arrangement will establish our presence in the prolific Marcellus Shale play and will provide the critical link between gas produced at the wellhead and downstream delivery to the markets."
