HOUSTON, Oct. 26, 2011 /PRNewswire/ -- Cabot Oil & Gas
Corporation (NYSE: COG) today announced continued drilling success
in the Marcellus, Marmaton and Eagle Ford Shale Plays, along with
new takeaway capacity expansion in the Marcellus. Additionally, the
Rocky Mountain sale announced in July closed in early October as
anticipated.
Marcellus
Since the conference call last quarter, Cabot has achieved a new
24-hour production record of 517 Mmcf per day in Susquehanna County
from 94 horizontal wells, with cumulative production to date of
approximately 175 Bcf. "Specifically we have seen one
horizontal well produce 4.0 Bcf in 347 days and a different
horizontal well reach 3.0 Bcf in 223 days," said Dan O. Dinges, Chairman, President and Chief
Executive Officer. "All told, we have 30 wells with cumulative
production of more than 2.0 Bcf each, and of note, our two extended
lateral wells have cumulative production of more than 2.8 Bcf each
in about 150 days." Cabot's position in this prolific area of the
Marcellus, resulted in Cabot recording 16 of the top 20 production
wells for the first six months of 2011, as reported by the
Pennsylvania Department of Environmental Protection.
In addition to productivity gains, Cabot is improving
operational efficiency. A recent horizontal well with a 3,500'
lateral, reached total depth in just 12.5 days. In the third
quarter, the Company turned-in-line 17 horizontal wells, all of
which are producing at curtailed rates, pending new infrastructure
commissioning.
Infrastructure
This week, Cabot commenced moving volumes to Millennium via the
much anticipated Laser Pipeline. Cabot has four wells cleaning up
and producing at this point. "We view this start-up of expanding
takeaway capacity as another positive step in the process of
developing our acreage," stated Dinges.
The Springville pipeline project, which will move Cabot gas to
Transco, remains on track to provide the initial 300 Mmcf per day
of capacity in mid-December, barring any unforeseen delays.
"Even without any contribution from Springville this year our
production will be within fourth quarter guidance," commented
Dinges. "In addition to the imminent start-up of the Springville
line, I am very pleased to announce that Cabot has recently secured
100% of the remaining capacity of the Springville Pipeline which
will allow us to move up to 625 Mmcf per day (an incremental 325
Mmcf per day) to Transco around the middle of 2012." Dinges
added, "This doubling of volumes on Transco will significantly aid
pricing."
Pricing
With the delays in moving gas on Laser and Transco, we have been
confined to the single 24" Tennessee Gas Pipeline for all of our
Marcellus production. With no other outlets, and gas-on-gas
competition from the surrounding area, recent pricing for northeast
Marcellus producers has seen downward pressure. "As highlighted
above, our pending takeaway projects will create options and
diversify our production into multiple downstream markets on
different interstate pipelines," said Dinges.
Eagle Ford
Cabot increased activity in the Buckhorn area of the Eagle Ford
Shale during the third quarter with nine more wells completed plus
two wells in the completion phase and one well waiting on
completion. This brings the total producing wells to 21.
The initial production rate for these wells is 628 Barrels of
oil equivalent per day (Boepd) with a 30-day average of 500 Boepd.
Two recent completions achieved 24-hour initial production rates of
938 and 791 Boepd.
The average lateral length for all wells at Buckhorn is
approximately 5,000' with an average of 16 frac stages. Also, three
additional non-operated wells were drilled and completed with very
good results in the area where Cabot owns a 50 percent working
interest. "With this successful activity our liquids volumes
continue to grow as evidenced by the recorded levels for the
quarter," commented Dinges.
Marmaton
Last quarter Cabot announced its initial success in the Marmaton
Shale. Since then, Cabot has participated as a non-operator
in seven Marmaton wells in Beaver County,
Oklahoma. The Company's working interest varies from two to
37.5 percent in the non-operated wells. Thus far, the best
performing wells have experienced peak 24-hour rates of 1,338, 792
and 589 Boepd respectively, with one of these most recent wells
having a 10-day average of 1,056 Boepd. Overall the wells
consistently were drilled and completed for less than $3 million per well. "Clearly, this
productivity encourages us to allocate capital here for our 2012
plans," said Dinges. "Presently, we are moving an operated
rig to the area in anticipation of having one rig there for 2012,
in addition to one in the Eagle Ford." Cabot controls over 61,000
acres in the Marmaton area.
"With the positive news from our three operating areas, we are
on track to deliver our shareholders an industry-leading growth
story provided by internally generated funds," commented
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