2010-07-28-2010-07-27-2010-07-27

Acquired 115,000 net acres and 30 miles of gas transmission lines in Virginia, gaining 10MMcfe/d.

During the second quarter of 2010, Fort Worth-based E&P company Range Resources Corp. (Nasdaq: RRC) acquired natural gas properties in Virginia from a subsidiary of Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) for $135 million.

The assets include 115,000 net acres and 30 miles of gas transmission lines on properties contiguous to the company's owned and operated Nora and Haysi fields. Current production is approximately 10 million cubic feet of gas equivalent per day. Range estimates the proved reserves at 125 billion cubic feet equivalent. The acquired properties contributed approximately 2 million cubic feet equivalent per day toward Range's total average second quarter production of 472 million cubic feet equivalent per day, according to the company's quarterly results.

The acquisition comprises more than 350,000 acres for future development, in stacked pay reservoirs of shallow coal-bed methane horizons, tight-gas horizons and deeper Huron shale. Upside includes infill drilling and behind-pipe opportunities with attractive economics given the current gas pricing environment.