Cabot Oil & Gas Provides Operation Update
HOUSTON, Feb. 21, 2013
HOUSTON, Feb. 21, 2013 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG)
today announced highlights from its areas of focus including the Marcellus,
Eagle Ford, Marmaton and Pearsall. "As indicated in today's other releases,
our operational efforts during 2012 resulted in several record breaking
performances, including new highs for both oil and gas production, total
proved reserves, and cash flows," said Dan O. Dinges, Chairman, President &
Chief Executive Officer. "While we derive value from each of our plays, the
Marcellus continues to be the primary contributor to our recent success."
Based on recently released data from the state of Pennsylvania, the Company
had 15 of the top 20 producing Marcellus wells in the state during 2012.
Cabot's cumulative production in the field has reached 500 Bcf in just over
four years of activity. Today's gross production, depending on operational
variations, remains at one Bcf per day and has reached a record of 1.038 Bcf
in one 24-hour period.
Recent well successes in the Marcellus include:
oA single well with cumulative production of 5 Bcf in 205 days.
oA four-well pad with a combined 24-hour peak rate of 92 Mmcf per day.
oA 13-stage well with an initial production rate of 28.5 Mmcf per day and a
30-day average production rate of 20.2 Mmcf per day.
oA 35-stage well with a 24-hour peak rate of 41.4 Mmcf per day and a 30-day
average production rate of 35.9 Mmcf per day.
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."
In Texas and Oklahoma, the Company has continued its effort to allocate
capital towards liquids-focused activity. The established Eagle Ford and
Marmaton efforts continue to see advances in productivity and efficiency. The
Pearsall remains in the beginning of the exploitation phase as Cabot
delineates the optimal placement for drilling and completion in a thick
"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 Pearsall activity, we have limited new data on the
Eagle Ford," stated Dinges. "We have, however, continued our efficiency
efforts as evidenced above."
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
Our three extended reach horizontal wells with laterals of approximately
9,500' have an average EUR of 230 Mboe with drilling costs between $4.3
million and $4.5 million. The average initial production rate from the three
wells has been 792 Boe per day with a 90 percent oil cut. "This rate does not
match our best well in the play, but the profile has been flat after inclining
for a period of time," said Dinges. "We are cautiously optimistic about the
well performance and based on the first full year of our Marmaton program we
are seeing returns that are consistent with our Eagle Ford program."
Cabot's 2013 capital plan of approximately $1 billion remains unchanged from
prior guidance, with approximately 65 percent allocated to the Marcellus, 30
percent to our oil initiatives in Texas and Oklahoma and the remaining 5
percent on other new opportunities. The capital program is expected to be
fully funded by cash flow while generating 35 to 50 percent production growth
and double digit reserve growth.
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
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.
FOR MORE INFORMATION CONTACT
Scott Schroeder (281) 589-4993
SOURCE Cabot Oil & Gas Corporation
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