Cabot Oil & Gas (COG) - Marcellus Shale Pennsylvania

By Tim - http://oilshalegas.com

Cabot Oil & Gas (COG) recently reported an operational update on the Marcellus Shale in Pennsylvania.

Cabot's Marcellus effort created a further step change as the Company exited 2011 with field production at 600 Mmcf per day, up from 236 Mmcf per day at the end of 2010 and up nine-fold since the end of 2009. This performance was driven by superior drilling results, including a dozen wells with initial production rates of more than 20 Mmcf per day, and a year where many of Cabot's wells stood out as the top performing wells in Pennsylvania's regulatory filings. For the year, Cabot completed 66 Marcellus wells with a total of 904 frac stages.

Specifically, in data just released by the Pennsylvania Department of Environmental Protection (PaDEP) on cumulative production for the last six months of 2011, Cabot had eight of the top 10 performing wells. In addition, for two of the identified wells, Cabot booked initial estimated ultimate recoverys (EURs) in excess of 20 Bcf each. These two wells, on one pad, have been on production for about 275 days and have cumulative production of 4.5 Bcf each. The Company does have one other well that has exceeded 5.0 Bcf of production since being placed on-line in the summer of 2010. "Also of note, is the result from our first pad drilling effort, which to date has produced 12.5 Bcf in less than 500 days and is still producing about 16 Mmcf per day from three wells," said Dan O. Dinges, Chairman, President and Chief Executive Officer.

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Susquehanna County, PA - Marcellus Shale

By Tim - http://oilshalegas.com

Talisman Energy (TLM) recently reported an operational update on the Marcellus Shale in Susquehanna County, PA. Talisman Energy (TLM) plans to spend $250 million on building out infrastructure as they move east towards Susquehanna County. However, due to low natural gas prices in the U.S, Talisman will reducing their drilling activity.

In the Marcellus, we'll reduce activity substantially in the light of current gas prices. We exited the year with 11 rigs, but will plan to reduce to an average of 7 rigs for this year and are actively considering reducing further to 5 rigs in the play. Even with 5 rigs operating, we expect to be able to hold production around 500 million cubic feet a day. Capital will be between $600 million and $800 million in total, with up to $250 million spent on building out infrastructure as we move east towards Susquehanna County.We produced over 400 million cubic feet a day in the Marcellus last year and about 485 million cubic feet a day in the fourth quarter and secured some of the highest margins in that region

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Southwestern Energy Co. (SWN): Fayetteville Shale Update

By Andrea: http://oilshalegas.com

Southwestern Energy Co. (SWN) recently announced its planned capital investment program and guidance for 2011. The company's total capital investment program in 2011 is planned to be approximately $1.9 billion, attributing much of that to the Fayetteville Shale.

"Our large inventory of high-return wells in the Fayetteville Shale gives us the ability to have profitable growth in today's price environment and our economies of scale in the play enable us to enjoy one of the lowest cost structures in the industry. The continued focus on keeping our costs low and adding the maximum value for each dollar we invest are the keys to success in 2011," stated Steve Mueller, President and Chief Executive Officer of Southwestern Energy.

"Our 2011 capital investment program continues to be dominated by our position in the Fayetteville Shale. Our plan for the Fayetteville Shale during the year is to transition from earning our acreage position by drilling first wells in new sections and optimizing well spacing to more drilling on multi-well pads which will result in faster drilling times. We currently plan to start the year with 13 operated horizontal rigs in the Fayetteville Shale and exit the year drilling with 11 rigs...."
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