|Cabot Oil & Gas Provides Operational Update|
HOUSTON, April 28, 2010 /PRNewswire via COMTEX/ --Cabot Oil & Gas Corporation (NYSE: COG) today announced a discovery in the oil window of the Eagle Ford Shale, more completions in the Marcellus Shale and a third, best to date, success in the Cotton Valley Taylor Sand. "These results highlight not only a widening footprint of shale activity but also a commitment to focus on the most capital efficient portions of our portfolio," said Dan O. Dinges, Chairman, President and Chief Executive Officer.
For the last year, the Company has been leasing acreage in south Texas focused on the Eagle Ford oil window to increase exposure to liquids. Today Cabot has nearly 52,000 net acres in this play and has drilled and completed its first well. The well was a 3,000' lateral with a 14-stage frac and is producing 334 barrels of oil and 142 Mcf per day. "This production rate is consistent with recently announced competitor wells in the area and is still strengthening," stated Dinges. "We like our acreage position and are encouraged by what we are seeing." Four more wells are planned this year.
Cabot's Pettet development continues to excel with one recent completion producing over 1,200 barrels of oil per day from a 5,471' lateral with 14 frac stages. The Company has inventoried 75 to 100 locations and will expand its program this year and next.
Additionally in Texas, the Company completed its third horizontal Cotton Valley Taylor Sand well with the best result to date. This well flowed at an initial production rate of 11.1 Mmcf per day with pressure at 2,425 psi. "The estimated recovery of our recent wells in this area ranges between six to seven Bcfe," commented Dinges.
During the quarter the Company turned into line 13 wells including eight horizontals and five verticals. The thirty-day production rates, some of which were restricted, on the horizontal wells range from 2.2 to 14.7 Mmcf per day, with an average of 8.0 Mmcf per day. "As indicated, the production from several of these wells reflects restricted rates because we are at maximum capacity at our Teel station," said Dinges. "To remedy this, our Lathrop Compression Station is scheduled to commence its initial start-up operations next month. We have been free flowing roughly 15-18 Mmcf per day through this facility, and we still have approximately 50 frac stages completed and waiting to be turned in line once the compressors start running."
Dinges added, "In anticipation of the additional volumes, we have added three (3) Firm Transportation Agreements to ensure our physical takeaway capacity keeps up with the increasing production levels. These agreements add a minimum of 100 Mmcf per day of firm capacity."
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.
SOURCE Cabot Oil & Gas Corporation