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Cabot Oil & Gas Corporation is the golden child of Marcellus leaders, having reached the 1 Bcf/d threshold back on December 19, 2012. The success continues as COG just reported YoY production increase of 52% AND some excellent IP's from its Zick area in Susquehanna County, NE Pennsylvania. Here, COG tested 51.2 MMcf/d from a 2 mile northern step-out, 2 well pad. The wells were frac'd with 37 stages and held up well with a 30-well IP of 43.6 MMcf/d.
This slide shows COG's Zick area where you can see these new results certainly exceed COG's "typical" 100% ROR shown in the slide above left. The "typical" COG well has an IP of 17.4 MMcf/d. The success COG is having in the Marcellus is spurring rapid growth and CEO Dan Dinges recently announced an acceleration of the program by bringing a sixth rig in early.
Shown above right is a slide from Range Resources, another Marcellus leader. The slide shows that Range's best area (the wet gas area of SW PA) is currently enjoying an impressive 106% IRR based on June 28 commodity prices. This slide shows the exact acreage position and wells behind this result. Overall, RRC just reported YoY quarterly production increase of 27% to 910 MMcfed, exceeding guidance. RRC's CEO Jeff Ventura is confident that the company will continue to see similar line of sight production growth of approximately 20-25% for the next few years.
For Marcellus watchers, RRC also announced other big news. Positive results from its 3-year pilot test on tighter spaced wells from 1,000 feet to 500 feet has resulted in the booking of another incremental 12 to 15 Tcfe of unproved resource potential. And if that is not good enough, RRC also announced a 38% increase in EUR's in the super-rich SW PA area to 10.9 Bcfe, a 41% increase in EUR's in its wet SW PA area to 12.3 Bcfe and a whopping 63% EUR increase in its SW PA dry gas area.
The table below shows Baker Hughes's well count and rig count numbers for the Marcellus. Impressively, these leaders in the Marcellus are rapidly improving the economics of the play by drilling wells using best practices and drilling more wells per rig deployed. While the rig count has dropped 41%, the number of wells drilled has dropped a slight 17%. This efficiency is driven in large part by pad drilling.
Well Count vs. Rig Count in the Marcellus
| Quarter-Year | Well Count | Rig Count | Land Wells/ Rig |
|---|
| Q1- 2012 |
541 |
135 |
4.01 |
| Q2- 2012 |
519 |
110 |
4.72 |
| Q3- 2012 |
443 |
93 |
4.77 |
| Q4- 2012 |
435 |
91 |
4.76 |
| Q1- 2013 |
475 |
92 |
5.19 |
| Q2- 2013 |
448 |
79 |
5.71 |
Source: Baker Hughes
More HOT slides and data mining thoughts below
Besides Cabot and Range, this docFinder alert highlights other companies flourishing in the Marcellus including: EQT, Chesapeake, Chevron, and Antero.
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