HOUSTON, Dec. 8 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation
(NYSE: COG) today announced that its Marcellus initiative in northeastern
Pennsylvania is gaining momentum and is currently producing over 13 Mmcfe per
day. Most recently, Cabot completed its first Marcellus horizontal well with
a measured depth of 8,925' and a horizontal leg at 2,000' using a six-stage
frac. The result was a 24-hour average initial production rate of 6.4 Mmcf
per day. "Adding this to our series of vertical wells, which have been turned
in line over the last five months and have a 30-day average IP of 750 Mcf per
day, has allowed Cabot to exceed our original year-end Marcellus production
target of six to nine Mmcf per day," said Dan O. Dinges, Chairman, President
and Chief Executive Officer. "We expect this to increase considerably over
the next few weeks as we have nine additional wells (six vertical and three
horizontal) ready to be completed or in the final stages of pipeline hookup."
To date, the Company has drilled 18 total wells in the field, four of
these as horizontal tests. Five rigs are currently working with plans to
increase to eight rigs in 2009. "Our 2008 program will be 16 vertical wells
plus seven horizontal wells," added Dinges. Cabot has four vertical wells and
three horizontal wells remaining to be drilled this year and will continue
operations seamlessly into 2009. Total well costs range between $1.3 million
to $1.5 million for a typical vertical well and $2.6 million to $2.9 million
for a horizontal well. The average depth of a vertical well is 7,200'; the
average horizontal leg is approximately 2,200'.
In terms of infrastructure, the Company has completed its first phase
pipeline build-out totaling 10 miles and has started up its first compressor
with a second unit on site and ready to be utilized once production volumes
justify the need. "We continue to actively secure rights of way and gain
permits to expand our pipeline infrastructure for our 2009 drilling program,"
In other news, Cabot completed its first horizontal Berea well in southern
West Virginia. This well came on line at approximately 900 Mcf per day, from
a 1,600' lateral section. Early production rates suggest ultimate recovery
between 1.0 - 1.2 Bcfe from this zone at a finding cost of less than
$1.50/Mcfe. The Company has identified over 60 additional locations on the
"We continue to work with vendors to secure the frac sand for our
completion operations," stated Dinges. "Currently we expect the horizontal
Haynesville/Bossier shale at Minden and the deep vertical test at County Line,
both to be fraced in mid-December."
In east Texas, the Company is testing its first horizontal Haynesville
lime well. The Pinkerton 12H was drilled to a total depth of 14,407' with a
3,100' horizontal section. It was stimulated with an eight-stage treatment
with 1.6 million pounds of proppant. It is too early to tell how this well
will perform as the company continues to flow back completion fluid. This
completion and others in the company have been delayed due to a lack of
proppant which seems to be an industry-wide problem.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading
independent natural gas producer with substantial interests in the Gulf Coast,
including Texas and Louisiana; the West, with the Rocky Mountains and Mid-
Continent; the East and in Canada. For additional information, visit the
Company's Internet homepage at http://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 of Cabot Oil & Gas Corporation