Cabot Oil & Gas Provides Operations Update
HOUSTON, April 24, 2013
HOUSTON, April 24, 2013 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE:
COG) today announced continued success from its step-out drilling in the
eastern portion of its Marcellus Shale leasehold, further highlighting the
consistency of results throughout its acreage position in northeast
Pennsylvania. Additionally, the Company reported noteworthy results from its
Marmaton drilling program in Oklahoma.
During the quarter, the Company turned-in-line two wells located approximately
three miles to the east of its Zick pad, representing about a ten mile
step-out from its initial area of development. The initial production rates
for these two wells were 16.3 million cubic feet (Mmcf) per day with nine
fracture stimulation (frac) stages and 22.2 Mmcf per day from 17 frac stages.
"These initial production rates are comparable to our original drilling area
and further demonstrate the consistent results we are seeing across our
acreage position," said Dan O. Dinges, Chairman, President and Chief Executive
Officer. "The productivity we have seen in our wells to date gives me comfort
in stating that we have de-risked a significant majority of our acreage
position in Susquehanna County."
Operational efficiencies in the Company's Marcellus program continued to be a
primary focus during the first quarter. The Company completed a total of 456
frac stages during the quarter and achieved a new record by completing eight
stages in a 24-hour period with one completion crew. The 456 completed stages
is a 70 percent increase over the first quarter of 2012. "In addition to
efficiencies on the completion side of our operations, we also commenced
operations from our first compressed natural gas (CNG) station to fuel our
pickup truck fleet and one of the drilling rigs operating for Cabot," stated
Dinges. "We continue to invest in ways to adapt our operations to utilize and
benefit from natural gas."
Infrastructure continues to improve as additional projects are nearing
completion.Noteworthy is the Central Compressor Station commissioning, which
is scheduled for late June.Central will be instrumental in reducing field
pressure and will also act as the major discharge station into the
Constitution Pipeline, which is on schedule to be operational in March
2015."Combining this installation with several smaller scale projects in key
parts of our acreage affords us visible second half production growth,"
commented Dinges. "These additions include compression and dehydration being
added throughout the third and fourth quarters of 2013."
In the Marmaton, the Company completed five wells during the quarter. These
wells were completed with an average of 21 frac stages, resulting in an
average initial production rate of more than 800 barrels of oil equivalent
(Boe) per day. Production for all five wells is approximately 90 percent oil.
"As a result of increased drilling and completion efficiencies, we continue to
reduce completed well costs, further improving the economics in the play,"
noted Dinges. "We continue to be pleased with the results we are seeing from
this oil initiative in the Marmaton and will continue to look for ways to
further extract value from all of our underappreciated assets."
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
Matt Kerin (281) 589-4642
SOURCE Cabot Oil & Gas Corporation
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