Cabot Oil & Gas Provides Operations Update
April 30 2008 - 8:16PM
PR Newswire (US)
HOUSTON, April 30 /PRNewswire-FirstCall/ -- Cabot Oil & Gas
Corporation (NYSE:COG) today announced a continued high level of
success at County Line, along with laying out its accelerated plans
for Marcellus and Haynesville during the remainder of 2008 and into
2009. County Line At County Line in East Texas, Cabot completed its
19th successful well in as many attempts. The latest three wells,
which were completed, were drilled on the western side of the
acreage near the middle of the leasehold and had initial production
rates of 14.1, 17.3, and 16.4 Mmcfe per day. Cabot is currently
drilling three wells and completing a fourth. "During the second
quarter and throughout the remainder of the year we will be moving
the program south as planned once the infrastructure is complete,"
said Dan O. Dinges, Chairman, President and Chief Executive
Officer. "County Line is right on track. Additionally in the fourth
quarter, we will test this James Lime trend with a horizontal well
at Trawick using the same technology we apply at County Line."
Marcellus In Pennsylvania, the Company is currently drilling its
first horizontal well with total depth expected within a week.
Also, a third vertical well has been cased and will be frac'd this
week concurrent with a micro-seismic survey. The original 2008 plan
has been increased to 30 wells (from 20), with at least 12
horizontal tests. "We expect to see first gas sales from the
Marcellus by late summer in conjunction with the completion of our
initial gathering system," commented Dinges. "With infrastructure
and leasehold in place, we expect to drill 70-100 wells here in
2009 with a heavy emphasis on horizontal wells." In West Virginia
for the remainder of 2008, the Company will drill 77 vertical and
at least six horizontal Marcellus wells. With 16 vertical wells
drilled and 11 recently placed on line, Cabot is experiencing the
expected results from the near-normal-pressured reservoir.
Thirty-day average production range in this area is up to 500 Mcf
per day. "The vertical Marcellus 'tails' we are drilling in our
legacy areas of West Virginia will be accretive to our traditional
program. We will continue to evaluate the horizontal potential,"
stated Dinges. Haynesville Cabot is expanding its
Haynesville/Bossier Shale exploitation effort on its acreage
positions in East Texas. The company has drilled 15 Haynesville
tests in this area over the last 12 months with better than
expected results. At Minden, 11 vertical wells have been completed
with IP's between 650 Mcf and 2.3 Mmcf per day with incremental
reserve additions up to 1.5 Bcf per well, at an incremental cost of
$400-$600M over a typical Cotton Valley well. Cabot plans to drill
eight additional Haynesville penetrations this year, with one of
those being a horizontal test to evaluate the economic merits of
horizontal vs. vertical. At Trawick, the Company has completed the
TGU 29-101 vertical well at 2.9 Mmcf per day from the Haynesville.
After 20 days, the well is flowing to sales at a stabilized rate of
about 1 Mmcf per day. "We are completing our second earning test
and are drilling a third well which should be at total depth within
a week," said Dinges. "Remember we have Cotton Valley behind pipe
with the ultimate goal of commingling both these zones. "In
addition, we will also test the Haynesville potential under the
County Line acreage later this year with a vertical well scheduled
to be spud in September," added Dinges. Cabot Oil & Gas
Corporation, headquartered in Houston, Texas is a leading
independent natural gas producer with substantial interests in the
Gulf Coast, including Texas and Louisiana; the West, with the Rocky
Mountains and Mid-Continent; the East and in Canada. For additional
information, visit the Company's Internet homepage at
http://www.cabotog.com/. The statements regarding future financial
performance and results and the other statements which are not
historical facts contained in this release are forward-looking
statements that involve risks and uncertainties, including, but not
limited to, market factors, the market price (including regional
basis differentials) of natural gas and oil, results of future
drilling and marketing activity, future production and costs, and
other factors detailed in the Company's Securities and Exchange
Commission filings. DATASOURCE: Cabot Oil & Gas Corporation
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation,
+1-281-589-4993 Web site: http://www.cabotog.com/
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