Marcellus Shale

Cabot Oil and Gas Reports Marcellus Shale Production

Cabot Oil and Gas (COG) reported that the company is producing in excess of 400 million cubic feet of natural gas per day from properties in the Marcellus Shale. The company attributed the increase to additional capacity added recently to the Lathrop Compressor Station.

Cabot Oil and Gas said the company previously produced at a rate of 310 million cubic feet per day from the Marcellus Shale prior to the added capacity.  The company can now produce up to 420 million cubic feet per day.

Cabot Oil and Gas also reported that two recent Marcellus Shale wells produced at initial rates of 29.5 and 29.7 million cubic feet per day.

Cabot Oil and Gas – Marcellus Shale Update - First Quarter Of 2011

Cabot Oil and Gas (COG) reported on its activity in Pennsylvania in the first quarter of 2011, where the company is developing the Marcellus Shale formation on its leasehold.

Cabot Oil and Gas reported gross production of 320 million cubic feet of natural gas equivalents per day at 3/31/2011, up 90 million cubic feet per day from the end of 2010. The company has started development using multi well pads and reported the first six well pad was producing 51 million cubic feet of natural gas equivalents per day and was restricted due to limits on infrastructure.  A second pad with two wells was producing 29 million cubic feet of natural gas equivalents per day.

Cabot Oil and Gas said that the construction of the Lathrop facility was continuing with seven compressors installed and once other equipment is ready at the site, the facility will have takeaway capacity of 450 million cubic feet per day. The Teel facility will add another 100 million cubic feet per day of capacity in the Marcellus Shale.

Cabot Oil And Gas - Marcellus Shale - Conference Call Comments

Cabot Oil and Gas (COG) reported its earnings for the second quarter of 2010 and held a conference call on July 22, 2010, to discuss the results. The company is active in several major shale plays including the Marcellus Shale.

Cabot Oil and Gas raised its guidance on production based in part on the success of wells in the Marcellus Shale, where the company is drilling with longer laterals and more hydraulic fracturing stages.

“We also moved our capital guidance higher. This spending increase was done for solid business reasons. About one-third of the increase is allocated to Marcellus in-field leasing, which allows more efficient development up there.”

“In the Marcellus, that effort continues to exceed all our expectations with production for the second quarter increasing approximately 39% from first quarter of 2010. Production was averaging approximately 165 million cubic foot gross over the last 30 days or so. This past weekend we brought a couple of more wells online and since the weekend we have averaged over 180 million cubic foot gross per day.”

“As we continue to lengthen the laterals and increase the average number of fracs, we have increased our production guidance for the third and fourth quarters. It is important to note this guidance is set based on the available existing capacity we have with our three current compressors at Lathrop.”

Source: Seeking Alpha