Cabot's initial short lateral well in the
In other regional activity, the first extended lateral Marmaton well was drilled with a lateral length of approximately 9,500 feet and completed with 30 frac stages. This well has just started flowing back. Cabot's second Marmaton extended lateral well is drilled and scheduled for completion by the end of October. "Additionally, we continue to see impressive results in our Eagle Ford area," commented Dinges. "We have completed another well with an initial production rate just under 1,000 BOE per day, with a 95 percent oil mix." The Company plans to complete 16 net wells in the fourth quarter between the
The Company continues to find ways to exploit this already prolific resource base. "We recently began producing two new wells in the Zick area, bringing the total well count in this area to seven," said Dinges. "These two wells combined had a peak production rate of more than 43 million cubic feet (Mmcf) of natural gas per day and a 20-day production rate of over 32 Mmcf per day from a total of 25 narrower spaced frac stages - slightly less than 200 feet apart per stage." Cabot implemented this pilot program this summer to explore the merits of reduced spacing between frac stages. The Company currently has a sample group of wells that have used the tighter frac spacing, which has enhanced efficiencies with higher initial production rates, increased 30-day rates and generated higher expected estimated ultimate recoveries (EURs) per foot of lateral.
Related to infrastructure, the Company has been notified by Williams that it has received 90 percent of the 2012 gathering line permits. With this news, there are currently numerous construction crews in the field, which should allow for approximately 30 wells to begin producing during the fourth quarter, roughly half of these will occur in December.
The Company has revised its 2013 Marcellus program to reflect tighter frac spacing. This was the main catalyst for the increase in the low end of production guidance and for the slight increase in program spending to cover this initiative. Guidance detail can be found on the Company's website under the Investor Relations tab. "Even with this change, we will still be cash flow positive at our budget prices of
"We continued to move forward on all fronts with new drilling initiatives showing enhanced results, be it new plays or new techniques," said Dinges. "Our ability to provide significant production growth with free cash flow in the near-term is a differentiating factor for Cabot."
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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