Cabot's First 10-Well Marcellus Pad
Cabot recently turned-in-line its first 10-well pad in the Marcellus, which included eight Lower Marcellus wells and two Upper Marcellus wells. The 10-well pad was completed with 170 fracture stimulation (frac) stages with a combined peak production rate of 201 million cubic feet (Mmcf) per day and a combined average 30-day production rate of 168 Mmcf per day. The production rates per 1,000' of lateral exceeded the Company's 14 Bcf type curve, further reiterating the consistency of results across Cabot's Marcellus position.
"This 10-well pad represents the new standard for operational efficiencies and technological advancement in our Marcellus operations," stated
Highlights from the 10-well pad include:
Upper Marcellus De-Risking
Two Upper Marcellus wells were completed on the pad with a total of 37 frac stages with an initial production (IP) rate of 32 Mmcf per day and a 30-day production rate of 24 Mmcf per day. These wells were spaced 1,000' apart in the Upper Marcellus and were offset 500' by a Lower Marcellus well. "We continue to monitor these wells to evaluate the productivity of the Upper Marcellus; however, based on the results to date, we continue to believe that the Upper Marcellus across our acreage position will provide rates of return that rival or exceed most unconventional resource plays," explained Dinges.
500' Downspacing Pilot Program
The 10-well pad included a pilot program that tested 500' downspacing between three Lower Marcellus wells as compared to Cabot's current Lower Marcellus spacing of 1,000' between laterals. The three wells were completed with a total of 62 frac stages with an IP rate of 62 Mmcf per day and a 30-day production rate of 56 Mmcf per day. "While more production data and testing are needed to determine the optimal spacing of laterals across the play, the results from this pilot program reinforce our belief that tighter downspacing will increase recoverable resource across our position, further enhancing the value of our Marcellus asset," affirmed Dinges.
Drilling and Completion Efficiencies / Cost Savings
Cabot experienced significant efficiency gains in its drilling and completion operations on the pad, which resulted in approximately
As a result of the drilling and completion efficiency gains on its first 10-well pad, Cabot anticipates well costs for the Company's typical 14 Bcf well will decrease from
This 10-well pad is the Company's first location to have been hydraulically fractured by an entirely bi-fuel frac fleet. Cabot's frac service provider,
Share Repurchase Program
During the fourth quarter, the Company has repurchased approximately 4.8 million shares, representing 25 percent of the 19.2 million shares authorized under its current share repurchase program. The recent share repurchases will be funded by the proceeds from the Company's previously announced Marmaton and
Mid-Continent Asset Sale
In addition to the previously announced Marmaton and
The statements regarding future financial performance and results and the other statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, market factors, the market price (including regional basis differentials) of natural gas and oil, results of future drilling and marketing activity, future production and costs, and other factors detailed in the Company's
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