HOUSTON, July 24, 2013 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the addition of a sixth rig in its Marcellus Shale drilling program to establish an early start to the 2014 program. "Based on a variety of factors including our continued well performance improvements, better visibility on infrastructure projects, our near-term free cash flow profile and our views on future natural gas demand, we have made the decision to bring a sixth Marcellus rig into the field," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "We will spud the first well utilizing the sixth rig in August and while no impact is expected on 2013 production, as additional wells will not be turned-in-line until next year, this effort will provide a positive impact on 2014 production growth." Additionally, the Company reported continued success from its step-out drilling in the Marcellus and impressive results from its Eagle Ford drilling program, where its most recent wells have outperformed the average results for the program.
In the Marcellus Shale, the Company is currently producing 1.2 billion cubic feet (Bcf) per day of gross natural gas from 226 producing horizontal wells. "Our current Marcellus daily production rate represents a 15 percent sequential increase from our first quarter exit rate, which is a result of several new wells turned-in-line and the recent commissioning of the Central compressor station at the end of June," stated Dinges. "Though Central's primary purpose will be as the major discharge station for the Constitution Pipeline in early 2015, we have seen production gains from our existing wells as Central has served to lower line pressure in our initial drilling area."
Recent noteworthy wells include:
- A two-well pad representing a 5 mile step-out to the northeast of the Zick area was completed with 27 fracture stimulation (frac) stages with an initial production (IP) rate of 34.8 Mmcf per day and an average 30-day production rate of 28.1 Mmcf per day.
- A two-well pad representing a 2 mile step-out to the north of the Zick area was completed with 37 frac stages with an IP rate of 51.2 Mmcf per day and an average 30-day production rate of 43.6 Mmcf per day.
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