Cabot Oil and Gas (COG) reported earnings for the first quarter of 2010, and held a conference call to discuss the results. The company provided an update on its operations in the Marcellus Shale.
“Now let's move to the Marcellus. Obviously continues to be our crown jewel for Cabot and certainly is developing into a true company maker with exceptional economics. Since we started we have paid millions of dollars in lease bonus and royalty and we've also hired 64 new employees with many additional positions yet to be filled.”
“You may recall we reached maximum capacity at the Peale station up in Susquehanna around the middle of February and commenced free flowing Marcellus gas at our Lathrop station in early April. Production for the total company at year end ended at 295 million cubic foot equivalent per day and now at quarter end we are at 325 million cubic foot equivalent per day and growing.”
“We continue to lease acreage in our core area and have increased our position to nearly 200,000 net and gross acreage. More importantly, our Marcellus program continues to yield exceptional well results and production is ramping up quickly. We are currently producing at a maximum infrastructure capacity of approximately 115 million cubic foot per day from the field. Phase one of our Lathrop station is complete which allows us to free flow gas into the Tennessee line as the press release highlighted.”
Source: Seeking Alpha