Range Resources and FirstEnergy announced last week the officialbeginning to their $200 million Appalachian joint venture, GreatLakes Energy Partners. The equal partnership combines all of bothcompanies’ oil and gas assets in the region.

Plans for the partnership were first announced last June (seeNGI, June 28). Each company has made net contributions of $100million in the new venture. Great Lakes has proved reserves of 450Bcf of equivalent natural gas and oil – about 90% of it gas – and4,700 miles of pipelines, as well as drilling rights to 980,000acres in the Appalachian Basin. With more than 1,000 proveddrilling locations within existing fields and a reserve life of 18years, Great Lakes expects to increase production by activedevelopment of existing fields and exploitation of deeperformations. In addition, the partners said Great Lakes intends topursue acquisition opportunities within its core area ofoperations.

John Pinkerton, CEO of Fort Worth, TX-based Range, said, “Thisunique transaction combines the assets and talents of thecontributing companies. With a long-life reserve base, strong cashflow and an experienced management team, Great Lakes is wellpositioned to pursue development and acquisition opportunities inthe Appalachian Basin. Great Lakes extensive gathering andtransportation systems, coupled with FirstEnergy’s bundled energyservice concept, are expected to provide the ability to fullyintegrate the natural gas chain from the wellhead all the way tothe end user.”

John Norris

©Copyright 1999 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.