HOUSTON, June 28, 2010 /PRNewswire via COMTEX/ --
Cabot Oil & Gas Corporation (NYSE: COG) today announced the successful start-up of the Company's Lathrop compressor station in Susquehanna, PA and the immediate production maximization of the new capacity. "With our existing shut-in wells and a number of newly completed wells, we felt comfortable with our ability to fill this new capacity," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "Production began flowing through the new facility on June 17, and we have produced from both Lathrop and our Teel station on average 170 Mmcf per day (gross), and at times we have produced at a rate of approximately 200 Mmcf per day." The initial phase of compression at Lathrop includes only the first three compressors.
Contributing to the current production level are 32 horizontal wells, with several vertical wells contributing only about six percent of the daily production total. Some of the most recent horizontal wells have been drilled and completed using longer laterals, narrower frac stages and cemented casing completions. The well results have been very positive with 24-hour restricted initial production rates reaching a peak of about 17 Mmcf per day. "These new well results highlight the impact of our latest initiatives," commented Dinges.
"We are extremely excited about this latest step change in our production profile, particularly because this play was producing only 25 Mmcf per day one year ago," stated Dinges. "However, our production guidance had some of these volumes producing in the latter part of May. Because of this fact, we expect to be slightly below our second quarter guidance." Dinges added, "I emphasized to our staff repeatedly that it was more important to make sure everything was done right, in a safe, compliant manner and was checked and triple checked, than worry about meeting one quarter's production target. Today our total Company production is about 375 Mmcf per day, above our daily published guidance levels for the second half of the year, which we will evaluate and update on the second quarter call."
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.
SOURCE Cabot Oil & Gas Corporation