Cabot Oil & Gas has 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.
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."
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.
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