Cabot Oil & Gas Corp. (NYSE: COG) detailed first-quarter 2015 operational results on April 24. The quarter ended March 31.
In the Marcellus, during the quarter the company averaged 1,727 million cubic feet per day (MMcf/d) net. This was 43% more than the amount produced in 2014’s first quarter, and 16% higher than the amount produced in fourth-quarter 2014. These production levels resulted from 2,018 MMcf/d produced in the first quarter.
Cabot will reduce its average gross operated Marcellus volumes in this year’s second quarter, to 1,550 MMcf/d to 1,600 MMcf/d.
Pricing pressure remains a challenge in the Marcellus, Dan O. Dinges, chairman, president and CEO, said. But year-to-date, Cabot’s Marcellus program has had lower drilling and completions costs.
Currently, three rigs operate in the shale.
In the Eagle Ford, net production in first-quarter 2015 was 17,831 boe/d, 145% higher than first-quarter 2014’s net production. This year, 17,017 bbl/d of liquids was produced, 149% more than in first-quarter 2014
Dinges said that 20 wells were placed on production, including six on acreage acquired last year. These wells produced 50% more oil than the previous operators’ at one, two, and three months.
In the Eagle Ford, 24 wells were drilled, and there were about 6.4 completed frack stages, per crew day, during the quarter—more than first-quarter 2014’s 5.5 per crew day.
Drilling and completions costs in the shale have decreased by about 20%compared with 2014’s costs..
There are two rigs operating in the play, and by May, only one will be operating, Cabot said.
Looking ahead to the second quarter, the guidance is 1,375 MMcf/d to 1,425 MMcf/d for natural gas, and 17,500 bbl/d to 18,250 bbl/d for liquids, , respectively.
The 2015 capital program remains at $900 million. About 65% of the budget will be incurred in the year’s first half, while 35% will be spent in the third and fourth quarters.
Cabot Oil & Gas Corp. is based in Houston.
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