HOUSTON, July 23 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation
(NYSE: COG) today announced the results of four successful horizontal
completions in three different reservoirs. "These recent completions indicate
the success we continue to experience in the Marcellus and also success with
several new initiatives in the Pettet and Cotton Valley Taylor sand," said Dan
O. Dinges, Chairman, President and Chief Executive Officer. At the same time,
the Company discloses the cumulative impact of some plays and its plan for the
remainder of 2009.
Cabot's most recent horizontal completion in the Marcellus, the Teel 8H,
had an initial production (24-hour into sales) rate of 10.3 Mmcf per day with
a maximum spot rate during that period of 12.0 Mmcf per day. Production from
this well remains strong with a 30-day average rate of 9.8 Mmcf per day.
The Teel #6, a vertical Marcellus well, is flowing to sales at an initial
24-hour rate of 4.2 Mmcf per day. The well was completed over a 370-foot
interval in the lower and upper Marcellus shale. "We believe the stimulation
contacted most of the lower and upper shales, plus the Purcell limestone,"
added Dinges. "We consider this completion a critical event in the
development of our Marcellus acreage."
"Today in Pennsylvania, we are producing 39 Mmcf per day from seven
horizontal and 20 vertical wells," stated Dinges. "One year ago we announced
our first Marcellus production from a vertical well. Since that time we have
cumulatively produced over 5.8 Bcf."
The 2009 drilling program is on schedule to spud 18 additional horizontal
wells between now and year-end. Presently, eight rigs are drilling with a
ninth preparing to spud a well. "At this point we have three wells completing
and 12 waiting on completion or pipeline," commented Dinges. "I am extremely
pleased with the latest results and the pace of progress as our new team
transitions to our new regional office in Pittsburgh."
Additionally, infrastructure has been expanded to handle the physical
production with Cabot now having 100 Mmcf per day of capacity at its Teel
compression station. Firm take-away from the station increases to 70 Mmcf per
day August 1, 2009 and then to 100 Mmcf per day August 1, 2010. "We are
working with several customers to secure additional firm take-away capacity
above the current levels," added Dinges.
At Minden, the Company recently completed its first horizontal Cotton
Valley Taylor sand well with an initial rate of 9.5 Mmcf per day. This well
has performed extremely well with a 30-day average rate of 7.9 Mmcf per day.
"We are pleased with both the initial results and the production stability of
this well," said Dinges. "These rates significantly enhance the economics for
Cotton Valley development in a lower price environment, and to that end, we
have identified 50 to 60 potential locations."
Also, in response to the soft price for natural gas near-term, the Company
initiated an effort to exploit the horizontal Pettet at County Line - a known
oil reservoir. "We have completed our confirmation wells of the Pettet Lime
oil reservoir under the James Lime field. The most recent well confirms the
initial discovery drilled by Cabot this past spring," stated Dinges. The
Sustainable Forest #5 tested the Pettet in April 2009 with a 4,700-foot
lateral and a ten-stage slickwater frac. The well IP'd to sales at 842
barrels of oil per day plus 1.4 Mmcf per day at 1,300 pounds flowing casing
pressure. The 30-day average rate was 519 barrels of oil per day plus 2.0
Mmcf per day.
The confirmation well, the Timberstar Redditt #4, drilled about 4,000 feet
from the discovery, was spud in May 2009 and tested the Pettet in a 5,200-foot
lateral with a ten-stage frac. This well flowed to sales at an initial IP
rate of 504 barrels of oil per day plus 1.2 Mmcf per day. Over the first nine
days of production, the well flowed at an average of 465 barrels of oil per
day plus 584 Mcf per day.
"Because Pettet oil economics are superior to the James at current
commodity prices, we will shift some capital from the James program to the
Pettet," added Dinges. "We have recently spud our third Pettet well and if
the price disparity between natural gas and oil persists, we plan to expand
the program further in 2010."
The Company has increased its investment program for 2009 from $475
million to $500 million with the incremental earmarked for more horizontal
activity in both east Texas and Marcellus, along with additional leasehold
primarily in the Marcellus.
"We have replaced some verticals with horizontals in Pennsylvania, and we
have added horizontals in east Texas," commented Dinges. "Specifically, we
have two horizontal Haynesville shale wells drilling with partners in our
County Line area."
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
CONTACT: Scott Schroeder, +1-281-589-4993, for
Cabot Oil & Gas