Attached files
file | filename |
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10-K/A - 10-K/A - RANGE RESOURCES CORP | d84473e10vkza.htm |
EX-23.3 - EX-23.3 - RANGE RESOURCES CORP | d84473exv23w3.htm |
EX-99.3 - EX-99.3 - RANGE RESOURCES CORP | d84473exv99w3.htm |
EX-31.1 - EX-31.1 - RANGE RESOURCES CORP | d84473exv31w1.htm |
EX-23.1 - EX-23.1 - RANGE RESOURCES CORP | d84473exv23w1.htm |
EX-31.2 - EX-31.2 - RANGE RESOURCES CORP | d84473exv31w2.htm |
EX-99.2 - EX-99.2 - RANGE RESOURCES CORP | d84473exv99w2.htm |
EX-23.2 - EX-23.2 - RANGE RESOURCES CORP | d84473exv23w2.htm |
EXHIBIT 99.1
H.J. GRUY AND ASSOCIATES, INC.
333 Clay Street, Suite 3850, Houston, Texas 77002 TEL. (713) 739-1000 FAX (713) 739-6112
333 Clay Street, Suite 3850, Houston, Texas 77002 TEL. (713) 739-1000 FAX (713) 739-6112
August 31, 2011
Range Resources Corporation |
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100 Throckmorton, Suite 1200 |
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Fort Worth, Texas 76102 |
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Re: | Powell Ranch Area, | |||
Mid-Continent Business Unit, | ||||
Loving East Area, | ||||
Year-End 2010 | ||||
Reserves Audit Letter (R) |
Ladies and Gentlemen:
At your request, we have independently audited the estimates of oil, condensate, natural gas
liquids, and natural gas proved reserves and future net cash flows effective December 31, 2010,
that Range Resources Corporation (Range) attributes to net interests owned by Range. At the
direction of Range, we audited 3.2 percent of the total company proved reserves. The audited
reserves are located in the Continental United States.
This report, completed on January 31, 2011, has been prepared for Range, and is provided for
inclusion in relevant U.S. Securities and Exchange Commission registration statements or other
Securities and Exchange Commission filings.
Based on our reserves audit, we consider the Range estimates of net proved reserves and net cash
flows to be reasonable in the aggregate. We find that the aggregate difference between the Range
proved reserves estimates and those estimates that would result if we performed a completely
independent evaluation effective December 31, 2010, is approximately 6.7 percent, with the Range
estimates being greater.
The term reserves audit as used herein conforms to the guidelines as stated in Regulation
S-K, Item 1202(a)(9). Our work included examination of the evidence supporting the reserves
discussed herein, and we find the quality and quantity of available data to be sufficient for
reserve estimating. For each property included in the 3.2 percent coverage, we examined the Range
estimating methods to the level of detail that we deem appropriate to form the opinions presented
herein. In the process of our audit, we used all methods and procedures we deemed necessary under
the circumstances to prepare our report.
Reserve estimates are based on extrapolation of established performance trends, material balance
calculations, volumetric calculations, analogy with the performance of comparable wells, or a
combination of these methods. Reserve estimates from volumetric calculations or from analogies may
be less certain than reserve estimates based on well performance obtained over a period during
which a substantial portion of the reserve was produced. In our judgment, Range used appropriate
engineering, geologic, and evaluation principles that are consistent with practices routinely
applied in the petroleum industry.
We find that the audited proved reserves are estimated by Range in compliance with the definitions
contained in Securities and Exchange Commission Regulation S-X, Rule 4-10(a).
In our judgment, there are no instances where current local, state, or federal regulations will
materially impact the ability of Range to recover the estimated proved reserves.
The primary economic assumptions in the Range reserves estimating process include the application
of product prices, operating costs, and future capital expenditures that are not escalated and
therefore remain constant for the projected life of each property. Product benchmark prices are
based on an average of 2010 first-day-of-the-month prices in accordance with Regulation S-X
guidelines. A price differential is applied to the oil, condensate, natural gas and natural gas
liquids base prices to adjust for transportation, geographic property location, and quality or
energy content. As a reference, the 12-month average benchmark prices for oil and natural gas are
$79.81 per barrel and $4.38 per million British thermal units, respectively. The average adjusted
prices, for oil, natural gas, and natural gas liquids, used to determine reserves are $76.79 per
barrel, $4.09 per thousand standard cubic feet and $35.53 per barrel, respectively, over the
projected assets life.
In conducting this audit, we relied on data supplied by Range. The extent and character of
ownership, oil and natural gas sales prices, operating costs, future capital expenditures,
historical production, accounting, geological, and engineering data were accepted as represented,
and we have assumed the authenticity of all documents submitted. No independent well tests,
property inspections, or audits of operating statements were conducted by our staff in conjunction
with this work. We did not verify or determine the extent, character, status, or liability, if
any, of production imbalances, hedging activities, or any current or possible future detrimental
environmental site conditions. The above-described audit does not constitute a complete
independent reserves study of the oil and gas properties of Range.
In order to audit the reserves and future cash flows estimated by Range, we have relied on
geological, engineering, and economic data furnished by our client. Although we instructed our
client to provide all pertinent data, and we made a reasonable effort to analyze it carefully with
methods accepted by the petroleum industry, there is no guarantee that the volumes of hydrocarbons
or the cash flows projected will be realized.
Hydrocarbon reserves estimates contain inherent uncertainties. Estimation of reserves is based on
the application of a variety of technologies and the subjective interpretation of collected data;
therefore, the reserves discussed herein are considered estimates only and should not be construed
as exact quantities. Future economic or operating conditions may affect recovery of estimated
reserves and cash flows, and reserves of all categories may be subject to revision as more
performance data become available or as alternative estimating methods become applicable.
H.J. Gruy and Associates, Inc. is a privately owned, independent consultancy, and compensation for
our efforts is not contingent upon the outcome of our work. H.J. Gruy and Associates, Inc. and its
employees have no direct financial interest in Range Resources Corporation or the properties
audited nor do we contemplate any future direct financial interest. Any distribution or
publication of this work or any part thereof must include this letter in its entirety.
Yours very truly, H.J. GRUY AND ASSOCIATES, INC. Texas Registration Number F-000637 |
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[Seal] | by: | /s/ Sylvia Castilleja | ||
Sylvia Castilleja, P.E. | ||||
Senior Vice President | ||||
SC/pb
CERTIFICATE OF QUALIFICATION
I, Sylvia Castilleja, of 333 Clay Street, Suite 3850, Houston, Texas 77002, hereby certify:
1. | I am a Senior Vice President with H.J. Gruy and Associates, Inc, and was the engineer primarily responsible for the reserve audit conducted by H.J. Gruy and Associates, Inc. and preparation of the report for Range Resources Corporation effective December 31, 2010 and dated August 31, 2011, contained herein. |
2. | I earned a Bachelor of Science degree in Petroleum Engineering from the University of Texas at Austin in 1984 and I am a Registered Professional Engineer in the State of Texas, P.E. License Number 88809. I am also a member of the Society of Petroleum Engineers and have 22 years of experience in the evaluation of oil and gas reserves. |
H.J. GRUY AND ASSOCIATES, INC. Texas Registration Number F-000637 |
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by: | /s/ Sylvia Castilleja | |||
Sylvia Castilleja, P.E. | ||||
Senior Vice President |