|Cabot Oil & Gas Provides Operations Update, Reports Success in Marcellus, Marmaton and Eagle Ford|
HOUSTON, April 25, 2012 /PRNewswire via COMTEX/ --Cabot Oil & Gas Corporation (NYSE: COG) today announced the successful commencement of Marcellus production in its 7-mile step-out to the east at the Zick well pad, and success with longer laterals in the Lathrop area. Additionally, the Company reported three Marmaton well results, along with the performance of a down-spacing test in the Eagle Ford.
Marcellus Production Update:
Late in the first quarter, Cabot commenced free-flowing Marcellus gas in the Zick area that represents a 7-mile step-out to the east from the nearest production. The five wells averaged 78 million cubic feet (Mmcf) per day for the last 20 days. "The results of these wells have de-risked another substantial portion of our acreage position in Susquehanna," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "If there was concern about the productivity of our eastern acreage, those concerns should be mitigated. The five wells were completed in 92 frac stages and will have additional productive capacity once compression is operational."
Also in the Marcellus during the first quarter, a two-well pad site with longer laterals was completed resulting in a 30-day average production level of 40 Mmcf per day. The wells were drilled with 4,500' and 5,000' laterals and completed with 19 and 21 frac stages, respectively. "The results from these completions indicate the efficiency to be gained with longer laterals," commented Dinges. "This is simply another example of the productivity and additional opportunities on our acreage."
Marmaton Well Results:
In the Marmaton play in Oklahoma, Cabot recently completed a well that reached a production level of 1,279 barrels of oil per day and 1,144 Mcf of natural gas per day, totaling 1,470 barrels of oil equivalent (BOE) per day at a total cost to drill and complete of $3.8 million. This well has produced 50,000 BOE in 50 days, highlighting the potential of this area. "These results are significantly greater than any well previously drilled in the play," stated Dinges. "This highly fractured zone is what our science effort is attempting to identify throughout the basin. In addition to these results, we completed two Marmaton wells recording 24-hour rates of 740 and 726 barrels of oil equivalent (BOE) per day, also in the top-tier of results in this new play."
Eagle Ford Downspacing:
In the Eagle Ford, Cabot recently completed a down-spacing pilot program drilling two wells with the horizontal legs spaced at 400 feet. "These two wells were zipper fraced and the early stage flowback indicates very positive results," commented Dinges. "The wells have 24-hour production rates of 788 and 791 barrels of oil per day, which is greater than the average initial rates for our entire producing portfolio of Eagle Ford wells."
Other Operational Highlights:
Cabot is scheduled to participate with Range Resources Corporation in a Utica/Point Pleasant test well in northwestern Pennsylvania. "We have 100,000 gross and 50,000 net acres in the play as a result of deep rights retained in an asset sale in 1997," said Dinges. "All indications place this acreage in an attractive position within the wet-gas window of the Utica."
Also of note, Cabot disclosed that its initial well in the Brown Dense/Smackover in Union County, Arkansas, reached a peak production rate of 206 barrels of oil per day from a 10-stage frac. "This early test demonstrates the productivity of the Brown Dense. With this and other data points we will continue efforts to enhance the play with science and technology," said Dinges. "We hold 13,600 net acres in the play."
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.
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SOURCE Cabot Oil & Gas Corporation