|Cabot Oil & Gas Provides Operation Update|
Based on recently released data from the state of
Recent well successes in the Marcellus include:
Well results continue to improve as evidenced by the 13.9 Bcf estimated ultimate recovery (EUR) average for the 41 completed/producing 2012 wells. The Company now has 10 wells with EURs in excess of 20 Bcf. In addition, Cabot continues to de-risk its acreage with the recent post-completion flow back results from a pad location on the farthest eastern edge of its acreage position, which are consistent with the Zick area wells. These wells represent a 9-mile step-out from the Company's Zick area and are currently waiting on pipeline, which is scheduled to arrive in the fourth quarter as planned. Cabot also continues to improve economics with cost savings resulting from decreased stimulation costs per stage, which are down approximately 15 to 20 percent.
"Our team, in conjunction with our service partners, has done a tremendous job making a step change in our Marcellus operations during 2012," commented Dinges. "We have thousands of locations in front of us along with ongoing infrastructure expansion plans in place to aid with this continued momentum."
"Our 67 percent increase in oil production from 2011 to 2012 exceeded expectations," stated Dinges. "Our challenge is to continue that momentum with more capital being allocated to the Marcellus."
Some recent highlights in the plays include:
The Company has experienced continued success with the 400' down spacing program, maintaining a range of EURs between 350 and 500 Mboe per well, depending on lateral length. Cabot continues to see improvements in EUR per lateral foot as the Company refines its lateral placement and completion techniques. This down spacing is expected to double the recoverable reserves in Cabot's Buckhorn area. The Company continues to see decreases in average well costs in the Eagle Ford as a result of lower stimulation costs and increases in drilling and completion efficiencies. Additionally, drilling days continue to decline with the fastest well drilled to date in 9.5 days and an average for recent wells of 13 days. "With the second half of 2012 focused primarily on our initial
To date, nine wells have been drilled with five wells producing, four wells completing or waiting on completion and three wells drilling. "We continue to refine the process of determining the best place to land the laterals in the prospective interval," commented Dinges. "This exploitation project, like the Marmaton before it, requires considerable engineering to optimize cost and well performance."
Our three extended reach horizontal wells with laterals of approximately 9,500' have an average EUR of 230 Mboe with drilling costs between
Cabot's 2013 capital plan of approximately
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
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