Range Resources (RRC) released an update on the company’s operations in Texas where it is developing the Cline Shale in the Permian Basin. The company has 100,000 net acres exposed to this play.
Range Resources said that the company’s first horizontal well into the Cline Shale is “very encouraging” and the company has drilled a second test well. The well had an initial production rate of 600 barrels of oil equivalent (BOE) per day.
Range Resources estimates that this Cline Shale well has an estimated ultimate recovery (EUR) of 340,000 BOE. This is composed of 210,000 barrels of crude oil, 71,000 barrels of natural gas liquids and 353 million cubic feet of natural gas.
Range Resources estimates that once the company ramps up development here, wells with a 3,000 foot lateral will cost $4.3 million to drill and complete. These wells will earn a 41% rate of return and have a net present value of $3.4 million per well.