HOUSTON, April 27, 2011 /PRNewswire/ -- Cabot Oil &
Gas Corporation (NYSE: COG) today announced continued achievement
of milestones in the Marcellus, drilling success in the Eagle Ford
and agreements in principle for its Haynesville joint venture
effort. "We continue to build momentum in our two areas of
focus for 2011," said Dan O. Dinges,
Chairman, President and Chief Executive Officer. "Additionally, we
have streamlined our east Texas
operation with arrangements that are accretive to Cabot."
North Region
In the Marcellus, the Company ended the quarter producing at a
curtailed rate of 320 Mmcf gross per day. This represents a
production increase since year-end of 90 Mmcf per day as the
benefits of the Lathrop expansion
began to show up in production.
Contributing to these totals was the completion of several
multi-well pads that were turned in line, albeit at curtailed
rates. Cabot's first six-well pad added 51 Mmcf gross per
day, although infrastructure limits are restricting its full
productive capacity. A two-well pad with 29 completion stages
is producing 36 Mmcf gross per day. "The productivity we have
seen repeatedly for the last 18 months provides a great deal of
confidence in our program," commented Dinges. "Tempering this
excitement is the 'blocking and tackling' in the trenches to get
the infrastructure in place timely to exploit these results."
In regards to the infrastructure build-out, all seven
compressors at Lathrop are
installed, and the Company is working on additional dehydration and
more piping to reach full functionality. This effort will afford
Cabot 450 Mmcf per day of takeaway
capacity from this station and together with the Teel station
provides a total of 550 Mmcf per day of capacity. "In
conjunction with this growing capacity of Lathrop, we have identified and secured
markets throughout the summer that will allow us to utilize a
portion of this additional capacity," stated Dinges. "However, we
will still have excess production capacity until the Springville pipeline to Transco becomes
operational, which is scheduled during the third quarter."
To highlight the productivity of Cabot's Marcellus acreage, last week
Cabot achieved 100 Bcf of
cumulative production in Susquehanna – a feat that took just under
three years. At the current production rate, it will take
less than one year to achieve the next 100 Bcf of cumulative
production.
In other North Region news, the Pennsylvania Department of
Environmental Protection (PaDEP) has requested the industry to stop
disposing of frac flowback fluids at certain approved sites. "We
fully support this action by the PaDEP and the Pennsylvania administration," said Dinges.
"Since late 2009, we have been recycling 100 percent of our frac
fluid returns. We are committed to performing all our operations
using best practices and endorse continuing improvements in those
practices to minimize impact on the environment and communities in
which we operate."
"Additionally, we converted our drilling operation to utilize a
closed loop system by the fourth quarter of 2010. This
eliminates the need for open pits at drill sites and significantly
enhances our fluid management capabilities," added Dinges.
South Region
In the Eagle Ford shale, the Company added three more successful
operated completions with 24-hour initial production rates ranging
from 345 to 958 barrels of oil per day equivalent. "This range of
results highlights the variability as we continue to evaluate
completion techniques in the early stages of development in this
play," stated Dinges. "Presently we have three more wells
drilled, cased and in the queue for completion in our Buckhorn
area."
At the Haynesville area, Cabot
has signed two deals with industry peers that provide the Company
with a carried interest in the initial well for 24 units. In
the third deal, Cabot has elected
to sell several non-operated units producing 4 Mmcf per day.
This deal is signed and under the normal due diligence
evaluation. Closing is scheduled for early May with
approximately $50 to $55 million in
proceeds expected from all these transactions.
"We are pleased with the joint venture outcome as we
accomplished our goal of being carried by selling one-third of our
acreage and eliminating the need for near term capital allocation
in this area," said Dinges.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent
natural gas producer with its entire resource base located in the
continental United States.
For additional information, visit the Company's Internet
homepage at 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.
FOR MORE INFORMATION CONTACT
Scott Schroeder (281)
589-4993
SOURCE Cabot Oil & Gas Corporation