Range Resources Corporation says that its proved reserves at December 31, 2008 increased 19% to 2.7 Tcfe. From all sources, Range replaced 405% of production in 2008. Drilling alone replaced 367% of production. Drill bit finding cost with performance revisions, but excluding acreage cost and price revisions, was $1.68 per mcfe. Negative revisions as a result of lower oil and gas prices amounted to 69 Bcfe. Finding costs from all sources, including leasehold additions and acreage acquisitions and all price and performance revisions, totaled $3.08 per mcfe.

At year-end 2008, 83% of the proved reserves by volume was natural gas. The percentage of reserves in the proved undeveloped category was 38% versus 36% in 2007. At year-end 2008, the Company’s reserve life index stood at 18 years based on fourth quarter production levels. Approximately 87% of the reserves was audited by independent petroleum consultants.

In 2008, Range spent approximately $600 million on leasehold additions and acreage acquisitions, primarily in the Marcellus Shale play. For 2008, approximately 400,000 net acres were acquired Company-wide at an average cost of $1,500 per acre. At year-end 2008, the Company owned approximately 900,000 net acres in the Marcellus Shale fairway.

John H. Pinkerton, Range’s Chairman and CEO, said, “In 2008, our efforts and capital were dedicated toward not only building shareholder value by increasing reserves per share and production per share, but also expanding our acreage positions in key plays. For 2008, production rose 20% over the prior year. On the reserves side, despite sharply lower year-end commodity prices, proved reserves increased 19%. Most of the reserve growth came through our drilling program at an attractive average cost of $1.68 per mcfe. Given the industry’s high cost of acquisitions in 2008, Range’s strategy to stay focused on increasing value through drilling served us extremely well. On the acreage side, we added 400,000 net acres in 2008 at an average cost of $1,500 per acre. A substantial portion of the acreage acquired was in our Marcellus Shale play within areas we deem highly prospective based on our technical evaluation, which includes the results from more than 100 vertical and horizontal wells. While very pleased with the increase in proved reserves to 2.7 Tcfe, our unproven, unrisked resource potential of more than 20 Tcfe relating to our 3 million acre leasehold position will be the driver for future growth for many years to come.”

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