Cabot Oil & Gas Calls Marcellus Operations “Prolific”; Penn Virginia Will Drill 14 New Wells in Marcellus in 2011
More gleanings from year-end financial statements from drilling companies, this time from Cabot Oil & Gas and Penn Virginia Corporation. Of note, Cabot talks about the “prolific nature” of their 44 Marcellus gas wells, and Penn Virginia will drill their second Marcellus gas well in 2011 as they continue to shift their resources to the Marcellus with plans to drill 14 wells this year.
From Cabot Oil & Gas:
A significant portion of Cabot’s reserve adds were in its industry-leading area of the Marcellus, which provides substantially higher rates of return. Indicative of the value of Cabot’s acreage position in the Marcellus is the 10 Bcf average EUR per producing well booked from its 2010 drilling program. Because of the overall small sample pool in the Marcellus play (44 producing horizontal wells at year-end), Cabot took a conservative approach to its PUD bookings recognizing 0.9 offset PUD locations per well drilled with an EUR of 6.5 Bcf for each, assuming a 10-stage frac.
“Our 2010 drilling program illustrates the value every dollar invested yields to our shareholders,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “On a debt-adjusted per share basis, we continue to add value with increases in reserves and production. Not only has our Marcellus operation demonstrated its prolific nature; we have also transitioned our capital allocation in our South region to 100 percent liquids for 2011.”(1)
From Penn Virginia:
Our first horizontal Marcellus Shale well (Risser #A-1H) has been drilled and the second is being drilled from the same pad in Potter County, Pennsylvania. Once the second well is drilled, we plan to complete both wells and expect to place them on line by mid-year 2011. We expect to drill up to 14 (13.0 net) horizontal wells in 2011 in Potter and Tioga Counties, Pennsylvania. We currently have over 56,000 net acres in the Marcellus Shale, primarily in Potter and Tioga Counties, where we have in excess of 35,000 net acres and estimate we have over 200 gross drilling locations.(2)
Cabot Oil & Gas Press Release (Feb 22) – Cabot Oil & Gas Corporation Announces Year-End Proved Reserves of 2.7 Tcfe, 31 Percent Increase Year-Over-Year
Business Wire (Feb 23) – Penn Virginia Corporation Announces Record Proved Reserves and Provides Operational Update