HOUSTON, April 30 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced a continued high level of success at County Line, along with laying out its accelerated plans for Marcellus and Haynesville during the remainder of 2008 and into 2009.
At County Line in East Texas, Cabot completed its 19th successful well in as many attempts. The latest three wells, which were completed, were drilled on the western side of the acreage near the middle of the leasehold and had initial production rates of 14.1, 17.3, and 16.4 Mmcfe per day. Cabot is currently drilling three wells and completing a fourth. "During the second quarter and throughout the remainder of the year we will be moving the program south as planned once the infrastructure is complete," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "County Line is right on track. Additionally in the fourth quarter, we will test this James Lime trend with a horizontal well at Trawick using the same technology we apply at County Line."
In Pennsylvania, the Company is currently drilling its first horizontal well with total depth expected within a week. Also, a third vertical well has been cased and will be frac'd this week concurrent with a micro-seismic survey. The original 2008 plan has been increased to 30 wells (from 20), with at least 12 horizontal tests. "We expect to see first gas sales from the Marcellus by late summer in conjunction with the completion of our initial gathering system," commented Dinges. "With infrastructure and leasehold in place, we expect to drill 70-100 wells here in 2009 with a heavy emphasis on horizontal wells."
In West Virginia for the remainder of 2008, the Company will drill 77 vertical and at least six horizontal Marcellus wells. With 16 vertical wells drilled and 11 recently placed on line, Cabot is experiencing the expected results from the near-normal-pressured reservoir. Thirty-day average production range in this area is up to 500 Mcf per day. "The vertical Marcellus 'tails' we are drilling in our legacy areas of West Virginia will be accretive to our traditional program. We will continue to evaluate the horizontal potential," stated Dinges.
Cabot is expanding its Haynesville/Bossier Shale exploitation effort on its acreage positions in East Texas. The company has drilled 15 Haynesville tests in this area over the last 12 months with better than expected results. At Minden, 11 vertical wells have been completed with IP's between 650 Mcf and 2.3 Mmcf per day with incremental reserve additions up to 1.5 Bcf per well, at an incremental cost of $400-$600M over a typical Cotton Valley well. Cabot plans to drill eight additional Haynesville penetrations this year, with one of those being a horizontal test to evaluate the economic merits of horizontal vs. vertical.
At Trawick, the Company has completed the TGU 29-101 vertical well at 2.9 Mmcf per day from the Haynesville. After 20 days, the well is flowing to sales at a stabilized rate of about 1 Mmcf per day. "We are completing our second earning test and are drilling a third well which should be at total depth within a week," said Dinges. "Remember we have Cotton Valley behind pipe with the ultimate goal of commingling both these zones.
"In addition, we will also test the Haynesville potential under the County Line acreage later this year with a vertical well scheduled to be spud in September," added Dinges.
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,
Web site: http://www.cabotog.com (COG)