Marcellus Shale

Cabot Oil and Gas Reports Record Marcellus Shale Production

Cabot Oil and Gas Corporation (COG) reported that the company’s gross natural gas production from the Marcellus Shale reached an average of 700 million cubic feet per day over the last two weeks.  The company said that production hit a record level of 752 million cubic feet per day during one 24 hour period.

Cabot Oil and Gas Corporation had 14 of the top 20 performing Marcellus Shale wells in the first six months of 2012 and said that the company’s cumulative production is 354 billion cubic feet from 145 producing horizontal wells.

Rex Energy Updates Marcellus Shale Well Costs And EUR's

Rex Energy (REXX) issued updated information on the company’s cost to drill and complete wells into the Marcellus Shale in 2011.  The company also increased the estimated ultimate recovery (EUR) on Marcellus Shale wells.

Butler County Operated

Rex Energy said that wells in this area cost $5.3 million to drill and complete, up from $4.7 million in 2010.  These wells are also more productive and have a EUR of 5.3 Bcfe in 2011, up from 4.4 Bcfe in 2010.

Westmoreland County – Non Operated

Rex Energy said that wells in this area cost $5.8 million to drill and complete, up from $4.7 million in 2010.  These wells are also more productive and have a EUR of 4.2 Bcfe in 2011, up from 3 Bcfe in 2010.

Centre and Clearfield Counties – Non Operated

Rex Energy said that wells in this area cost $5.8 million to drill and complete, up from $4.7 million in 2010.  These wells are also more productive and have a EUR of 4.1 Bcfe in 2011, up from 3 Bcfe in 2010.

The well costs and EUR’s are based on 3,500 foot laterals and a twelve stage hydraulic fracturing operation.

Magnum Hunter Resources Enters Marcellus Shale Joint Venture

Magnum Hunter Resources Corporation (MHR) reported that the company has entered a joint development and operating agreement with Stone Energy Corporation (SGY) in the Marcellus Shale.  The agreement covers acreage currently owned by both companies and located in Wetzel County, West Virginia.

Magnum Hunter and Stone Energy agreed to drill nineteen horizontal wells over the next two years on a 1,925 acre leasehold.  The two companies have drilled and completed two horizontal wells into the Marcellus Shale on the acreage and plan to drill eleven additional horizontal wells in 2012 at a cost of $47 million.

Stone Energy will be the operator of the leasehold and production from the wells will be delivered to the Eureka Hunter Pipeline System, which is owned by Magnum Hunter.