Cabot Oil & Gas Q4 2008 Earnings Call Transcript

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2009-02-13 10:35:23.0

Tags: Section, Call Transcript, Earnings, Seeking Alpha, Cabot Oil & Gas Corp.

Question-and-Answer Session

Operator: (Operator Instructions). Your first question comes from the line of Michael Jacob of Tudor Pickering, Holt.

Michael Jacob - Tudor Pickering, Holt

Good morning gentlemen.

Dan Dinges

Good morning Michael.

Michael Jacob - Tudor Pickering, Holt

Some nice Marcellus results. Thinking about the Ely 5H, believe for sometime there was concern on TOC getting high in the deeper Marcellus, but seems like it may not be an issue. Are you breaking the Marcellus into segments that you are moving deeper or is the organic content pretty uniform?

Dan Dinges

I will let Mike answer this, Michael?

Michael Walen

Yeah, Michael, we have seen three different sections up there. We have an upper Marcellus Shale, the Purcell Shale plus the lower Marcellus. We've cut some cores, we've done the analysis, and the TUCs are very, very attractive and the rocks are not overcooked. And I think that's the result of our wells are showing that.

Michael Jacob - Tudor Pickering, Holt

That's great. And just wondering if we could just spend a second moving down the East Texas and maybe spend a little bit more time on the Haynesville stem and talk about kind of what went wrong from process standpoint kind of less in plant?

Dan Dinges

Well, the-- and I will put that over to Mike also, but I will do a little preamble here. We have talked a long time unfortunately about our new initiatives in the East Texas area. They are looking at and trying to exploit a horizontal in the Haynesville Lime. Also we're looking at the opportunities to drill horizontal in the middle Bossier, which we've had significant shows in the just about every well we drilled in the Minden area and that section. And we did the exploratory in the deep section in County Line.

But we really had certainly with the vertical success in completions and production history and the Haynesville Lime, we had high and still have high expectations for the horizontal in that section. We had drilled over 40 or so wells and are more in County Line using the Packers Plus System in our horizontals there. We felt comfortable using that system and our horizontals in the Haynesville Lime and Bossier Shale. However, we -- and we did that, certainly we experienced higher pressures and higher temperatures in the Bossier and the Haynesville Lime than we've seen in the James. And I don't know exactly what the problems are surrounding the Packers Plus System in our completion efforts. But in both wells we had problems with the completions. Whether it's sliding fleets or whatever, but bottom-line we just did not get affective fracs, and I will let might kind of explore on kind of what the industry really is and may be -- and probably what we'll got to in completions as we go forward to test the sections.

 

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