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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Marcellus Shale: ATN Atlas Energy Washington PA

Atlas Energy ( ATN ) has come out and given shareholders a drilling update on the Marcellus Shale. Atlas Energy is currently active in the following Pa counties: Washington, Greene, Fayette.

Atlas Energy ATN announces today that it has completed a vertical well in the Marcellus Shale that produced a record 5 million cubic feet of natural gas into a pipeline over a 24-hour period and, after 25 days of production, has produced approximately 81 million cubic feet. Atlas completed this well using a two-stage frac design that it pioneered earlier this year, which was drilled on the Company's own account. The Company has now successfully completed seven two-stage vertical fracs in the Marcellus Shale and has averaged initial rates of production for 24 hours of 2.5 million cubic feet per day. The Company intends to complete all future vertical Marcellus wells with similar multi-stage fracs. Atlas has performed over 100 vertical Marcellus completions.
"These results reflect not only the effectiveness of our completion designs, but also the quality of our acreage," stated Richard D. Weber, President and Chief Operating Officer. "The potential of horizontal wells having frac designs with up to eight stages is very exciting given the exceptional results from our two stage verticals."
Atlas is also currently operating an extensive horizontal Marcellus program and expects to complete 12 wells by early in the second quarter of 2009. Ten of these wells will be drilled in a 50/50 joint venture with an industry partner in Washington County, Pennsylvania. The remaining two wells will be drilled in eastern Greene and western Fayette counties of Pennsylvania in an industry consortium where Atlas will have a 25% working interest. In each case, Atlas will be the operator. The Company is currently running two horizontal rigs. The first two wells have been drilled and cased to 2,400 feet and 3,800 feet, respectively, and will be completed and turned into line in January.
In addition, Atlas continues to hedge the price it receives for its natural gas production, with hedges in place through 2013 at prices ranging from approximately $8.00 to $9.00 per mcf. The Company's hedge positions for 2009 and 2010 account for approximately 79% and 63%, respectively, of its recently disclosed production volume for the third quarter of 2008.

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