Cabot Oil & Gas Provides Operations Update

Published: 28-Apr-2009

By: Staff Writer Staff Writer Staff Writer

Cabot Oil & Gas Corporation (Cabot Oil & Gas) has completed Heitzman #1H with a four-stage frac and flowed to sales in a 24-hour test at an initial rate of 9Mmcf per day. Currently the well has been online five days, and production has averaged 8.8Mmcf per day in that period. Cabot Oil & Gas’ East Texas program continues to alter to the new activity around county line. The company remains committed to the $475 million program for 2009, 47% of which is for East Texas.

This is our best initial rate to date and provides us further confirmation of the prolific nature of this area for the Marcellus, said Dan O. Dinges, chairman, president and chief executive officer. “Additionally, production from our first three reported horizontals continues to hold up well.

The first horizontal well, the Ely 6H (came on at 6.4Mmcf per day) and is producing 4.3Mmcf per day after 105 days on line. The Black 1H (initial 24-hour sales rate of 8.8Mmcf per day) had a 30-day average rate of 8.3Mmcf per day and is pumping 8Mmcf per day after 60 days on line. The Black #2H, after only a four-stage frac, flowed to sales at an original rate of 8.3Mmcf per day, with a 30-day rate of 5.6Mmcf per day and is producing 4.1Mmcf per day after 60 days.

Presently, these four horizontals together are producing over 25Mmcf per day with our field producing at our current sales capacity of about 34Mmcf per day from these four horizontals and 13 vertical wells, stated Dinges. We continue to make progress on increasing our sales capacity with the installation of additional compression and dehydration. Capacity should increase to about 50 to 55Mmcf per day by mid-May and up to 85 to 90Mmcf per day by the end of June, 2009. Cabot Oil & Gas has also successfully negotiated a second compressor site for additional capacity and will be building this site over the summer. Plans call for first gas sales from this site in early 2010.

So far, Cabot Oil & Gas has drilled 28 wells in Pennsylvania; eight are horizontals with laterals stretching up to 4000'. There are six rigs operating in Pennsylvania, drilling three horizontal and three vertical wells at the present time. Three horizontal and three vertical wells are waiting on completion, with one horizontal well now flowing back.

East Texas

Cabot Oil & Gas has recently adjusted its drilling schedule to include a horizontal Haynesville Lime well at Minden and horizontal Haynesville shale well at county line. These wells will further delineate the lime and the shale, commented Dinges. The horizontal shale well is designed to exploit the successful test of the vertical Von Goetz #3 well.

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