Cabot Oil & Gas Expects To Complete 60 Marcellus Shale Wells In PA By End Of 2009

Cabot Oil & Gas Corporation this week reported it will have 60 wells drilled into the Marcellus Shale formation completed by the end of 2009 in Pennsylvania, in spite of lowering its investment level for the year.

 

The Pennsylvania Marcellus shale play continues to exceed expectations with production approaching 20 Mmcf per day at December 31, 2008. Todate, Cabot is producing from 15 wells with one horizontal well turned-in-line. There are five horizontal wells waiting on completion or pipeline hook-up and two vertical wells waiting on pipeline.

 

"These wells will provide the next step in our production increase for Pennsylvania," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "From completion activity, together with our 2009 Marcellus program remaining at 60 wells, 30 horizontal and 30 vertical, we expect further reserve and production enhancements."

 

Dinges added, "Additionally, at this time, we have five rigs running, two drilling horizontals with the other smaller rigs drilling the vertical sections for later horizontal work. We will drill this program with five rigs expanding to six by the end of the first quarter and then growing our rig count to seven or even eight rigs as permits allow. We will be flexible and adjust our 30/30 split towards more horizontals when possible."