Marcellus Shale

Cabot Oil and Gas Reaffirms Production Guidance

Cabot Oil and Gas Corporation (COG) reaffirmed the company’s guidance on production for the third quarter of 2011.  The company is active in the Marcellus Shale and generates the majority of its production from this play.

Cabot Oil and Gas Corporation guidance for the third quarter of 2011 is for a range of 521 to 567 million cubic feet of natural gas equivalents per day.  The company issued the affirmation due to speculation in the market that “operational challenges” and the “logistics of moving gas” in Pennsylvania might impact production growth.

Cabot Oil and Gas Corporation also has fourth quarter of 2011 guidance in a range of 562 to 608 million cubic feet of natural gas equivalents per day.  

Cabot Oil and Gas Corporation also disclosed that the company’s Marcellus Shale gross production set a 24 record of 483 million cubic feet of natural gas equivalents per day, and a peak inter-day rate of 520 million cubic feet of natural gas equivalents per day.   

Cabot Oil and Gas Corporation is constructing the Laser and Springville pipelines to accommodate increased production in the Marcellus Shale.

Penn Virginia Reports Three Marcellus Shale Wells

Penn Virginia (PVA) reported the production rates of three wells recently completed into the Marcellus Shale on the company’s acreage in Pennsylvania.

Risser #A-1H – peak 24 hour production rate of 3.1 million cubic feet of natural gas per day, and a 72 hour test rate of 2.1 million cubic feet of natural gas per day.

Risser #A-2H - peak 24 hour production rate of 2.8 million cubic feet of natural gas per day, and a 72 hour test rate of 1.7 million cubic feet of natural gas per day.

Dunn #A-1H - peak 24 hour production rate of 4 million cubic feet of natural gas per day, and a 72 hour test rate of 2.7 million cubic feet of natural gas per day.

Penn Virginia said that these wells were located in Potter and Tioga counties and were the first horizontal wells drilled into the Marcellus Shale by the company.  The company has one well waiting on completion and plans to conduct vertical well testing on its acreage in the second half of 2011.

Atlas Energy Releases Marcellus Shale Update For The Third Quarter Of 2010

Atlas Energy (ATLS) issued an update on its activities in the Marcellus Shale during the third quarter of 2010.

Atlas Energy drilled nineteen horizontal Marcellus Shale wells during the third quarter of 2010. The company completed twelve horizontal wells using hydraulic fracturing and put six wells onto sales.

Atlas Energy reported that the average initial peak rate of production from the twelve completed Marcellus shale wells was 6.8 million cubic feet equivalent per day, with one well producing at a company record of 21 million cubic feet equivalent per day.

Atlas Energy said that average net production in the Appalachian segment was 63.3 million cubic feet of natural gas equivalents per day during the third quarter of 2010. This was a 53.2% increase on a year over year basis, and a 15.4% sequential increase from the second quarter of 2010.