Range readies first well in Utica Shale

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Jeff Ventura, Range Resources Corp. (NYSE: RRC).

Justine Coyne

Reporter- Pittsburgh Business Times

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Range Resources CEO Jeffrey Ventura is optimistic about 2014.

The company, which has been credited with discovering the Marcellus Shale, has about 1 million acres in Pennsylvania under lease with a stacked-play potential equal to about 1.9 million acres.

Producing more than 1 billion cubic feet a day, Ventura said the company's resource potential is eight to 10 times its already-proven resources, not including the Utica. But it's the Utica that will be the next big move for Range (NYSE: RRC) as the company is about to execute its first well in the Utica/Point Pleasant formation.

Speaking Wednesday at Hart Energy's DUG East conference and exhibition, Ventura said the projections for the well location are positive.

"You never know until you drill," he said. "But it certainly has the right ingredients."

The strategy for 2014, Ventura said, is to focus on per-share growth on a debt-adjusted basis.

Since 2008, the company has lowered its unit costs by 34 percent, which Ventura said has helped to set the company up for significant growth.

For 2014, he said the company's expected production growth will be between 20 percent and 25 percent. Focusing on a high rate of return, high growth and with the company's large scale asset base and low investment risk he said the growth rate should continue in the future.

"With the position we have, we expect to grow at 20 percent to 25 percent for many years to come," he said.

Justine Coyne covers manufacturing and higher education.