The Pennsylvania Marcellus shale play continues to exceed expectations
with production approaching 20 Mmcf per day at
To date, Cabot is producing from 15 wells with one horizontal well
turned-in-line. There are five horizontal wells waiting on completion or
pipeline hook-up and two vertical wells waiting on pipeline. "These wells
will provide the next step in our production increase for
Dinges added, "Additionally, at this time, we have five rigs running, two drilling horizontals with the other smaller rigs drilling the vertical sections for later horizontal work. We will drill this program with five rigs expanding to six by the end of the first quarter and then growing our rig count to seven or even eight rigs as permits allow. We will be flexible and adjust our 30/30 split towards more horizontals when possible."
Marcellus Well Highlights: -- Previously announced Ely 6H producing 5.3 Mmcf per day (30-day average) from 2,178' vertical section after six-stage fracture stimulation. -- Black 2H tested 4.1 Mmcf per day (20 percent frac fluid recovered) from 1,302' vertical section after four-stage stimulation. -- Ely 4V producing 2.3 Mmcf per day (30-day average) from high angle well bore after three-stage stimulation. -- Ely 5H drilled to record 10,394' with a vertical section of 3,046'. Nine-stage completion scheduled for mid-March.
The Company continues to focus on improving its drilling and completion practices. Working with the service partners, the Company made significant changes to the drilling mud systems, bit utilization and mud motors, which have materially improved the penetration rate. "Our first horizontal attempt took 19 days from kick-off point to reach total depth of 8,925', while our last well took 15 days from kick-off point to reach total depth of 10,394', a 27 percent improvement," commented Dinges. "We continue to modify our completion practices by increasing the number of fracs per well, shortening the distance between fracs, increasing the pump rates and sand concentration in each frac. Our data indicates a positive impact to production levels of as much as 40 percent per stage as compared to our earlier completion techniques. These technical enhancements will continue."
Since closing the east
Recent vertical successes include: -- Jarrell #4 was tested from the Haynesville lime at 3.3 Mmcf per day at 2,800 pounds and the Cotton Valley at 1.7 Mmcf per day. The two zones have been commingled. -- Hays #4 was tested from the Haynesville lime at 1.1 Mmcf per day with Cotton Valley pay behind pipe. -- Hughes #2 was completed in the Haynesville lime at 1.5 Mmcf per day at 2,200 pounds and the Cotton Valley at 2.2 Mmcf per day. This well will be commingled.
In addition to the vertical opportunities, the Company drilled and completed two horizontal wells to test the Haynesville limestone and the middle Bossier shale. Both wells were drilled from the same pad to improve efficiencies and completed back to back and have been the source of interest for some time.
The Pinkerton 11H, the first horizontal shale test in Minden, was drilled
to a measured total depth of 14,144' in the middle Bossier shale with a 3,000'
lateral. This well reached total depth on
The Pinkerton 12H was drilled to a measured depth of 14,427' in the
Haynesville limestone and reached total depth on
The Company's third initiative was to drill a deep vertical test of the Haynesville section at County Line. This test, the Von Goetz #3 was drilled to a total depth of 13,800 feet through the Haynesville limestone. Excellent shows were encountered throughout the shale and limestone section. Production casing was run and three fracs were performed. The Haynesville limestone, lower Bossier (Haynesville) shale and the middle Bossier shale were all tested. "We are extremely pleased with the results, but with the competitive nature of this play, we will not release specifics at this time," said Dinges. "We do plan to move in a rig and drill a horizontal test to evaluate these zones in the near future."
The current price environment has forced Cabot to reassess its drilling
plans going forward. To this end, the Company has adjusted its 2009 program
to be well within cash flow at
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