Last week, Range Resources announced it has signed and closed an agreement to sell a proportionately reduced 1 percent overriding royalty in its leases in Washington County, Pennsylvania, for $300 million, according to Kallanish Energy. The buyers were not disclosed.
Range’s Washington County assets include about 300,000 net surface acres, that produced 1.7 billion cubic feet equivalent (Bcfe) net per day in the second quarter of 2018. The overriding royalty applies to existing and future Marcellus, Utica and Upper Devonian development on the subject leases, excluding shallower and deeper formations, according to a statement the company made.
Cash flow related to the 1 percent overriding royalty is expected to be about $25 million next year.
Range will maintain a net revenue interest of around 82 percent on the subject Washington County acreage.