Range to sell Virginia assets in deleverage

FORT WORTH, TEXAS, November 4, 2015 – US independent Range Resources has arranged the sale of assets in southwest Virginia for around $876 million, the company said on Tuesday. Range Resources said the deal was expected to be finalised by the end of 2015. The company did not release any information about the potential buyer.

The sale of its Nora assets is part of a deleveraging push, with proceeds expected to reduce Range Resources’ debt by 24 percent. The sale will also help decrease the company’s 2016 overhead, such as operating, gas brokerage and marketing expenses.

The assets span around 1,860 square kilometres in the Nora/Haysi combined fields and have around 3,500 operated wells. Together the assets produced 3.09 mcm (109 mcf) of gas per day in the third quarter of 2015, which represented around 7.5 percent of Range Resources’ total net output.

“Using our consistent, return-focused capital allocation process, we will continue to review our portfolio for opportunities to bring value forward where other assets cannot compete for capital in comparison to our 1.6 million stacked-pay acreage position in the Marcellus, Utica and Upper Devonian,” Range Resources CEO Jeff Ventura said in a statement.

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