HOUSTON, Oct. 26 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE:
COG) today provided a status update of its Marcellus development in
Susquehanna County, Pennsylvania, along with its first look at a horizontal
Haynesville shale success in its County Line field in east Texas.
Marcellus
The Company has nine horizontal wells producing, three of which have produced
over 1 Bcf. Seventeen horizontal wells have been drilled so far in 2009, and
16 are drilling or remain to be drilled from six horizontal rigs that are
currently operating. To date, the Company's 24-hour initial production rates
have ranged between 4.6 to 11.5 Mmcf per day, with 30-day rates ranging from
3.5 to 10.9 Mmcf per day. "One year ago, Cabot was producing about 5 Mmcf per
day from its Marcellus position in northeast Pennsylvania," stated Dan O.
Dinges, Chairman, President and Chief Executive Officer. "Today we are
producing over 50 Mmcf per day with a backlog of completions scheduled for the
last two months of the year." Dinges added, "Our two most recent completions
have now been on line for about 40 days and are currently producing 6.5 Mmcf
per day each."
Cabot has recently added to its acreage position and now has over 170,000
gross acres in northeast Pennsylvania. "From this position, we are expanding
our efforts in 2010 to 73 horizontal wells and ten vertical wells," said
Dinges. "This is more than a doubling of our effort and will account for
two-thirds of our investment program for 2010."
Haynesville
In east Texas, Cabot confirmed that the Company and its partners are flow
testing its first horizontal Haynesville shale well. The well is hooked up to
sales flowing back at this point, at approximately 21.0 Mmcf per day with a
flowing casing pressure of 7,800 psi, after 11 days in line. Dinges added, "We
anticipate that the well will improve further as it continues to clean up frac
fluid." The well is operated by Common Resources, and Cabot is a 42 percent
working interest partner.
"Our recent success affords us the opportunity to increase our production
guidance for the fourth quarter making the previous high end of guidance the
low point and establishing a new high level for the range," commented Dinges.
"Additionally, we have also raised our capital program to cover the potential
results from a more extensive leasing effort in Marcellus." The new
investment program is $580 million, which will only be spent depending on
leasing success.
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.
SOURCE Cabot Oil & Gas Corporation
Scott Schroeder of Cabot Oil & Gas Corporation, +1-281-589-4993
