Cabot producing 1 bcf/day
BY ROBERT L. BAKER
Cabot Oil & Gas announced that it has given out $175 million in royalties to Marcellus gas leaseholders in Susquehanna County over the past three years and people in Wyoming County could be next.
External relations director George Stark told a packed Wyoming County Chamber of Commerce luncheon at Twigs Restaurant in Tunkhannock Wednesday that the company indeed had moved into Lemon Twp.
He noted that its Flowers’ well just north of there in Susquehanna County had already shown its flow capacity was far surpassing other wells.
“Overall the fiscal health of the Marcellus has been ginormous for Cabot,” Stark said, smiling as he noted that 15 of the Top 20 producing Marcellus wells in Pennsylvania over the last half of 2012 were his company’s.
Peoples Neighborhood Bank President Alan Dakey asked what percent of Cabot’s completed wells are actually producing gas.
Stark said that he expected the number to be in the high 80s or low 90s.
He noted that while other gas companies might be slowing down to let some pipeline infrastructure catch up, that is not Cabot’s intent.
Stark said that his company had put up 72 wells in 2012 and was expecting to add 80-85 more in 2013.
He initially called the Dimock-Springville area of Susquehanna County “the sweetest spot in the (Marcellus) play” but noted latest production figures are extending that south to Lemon and east to Lenox.
“But we don’t just produce it, we’re looking actively for people to buy it,” Stark said, adding that pipelines have become a huge issue in getting gas to market.
“Williams has been a great partner,” he said, and pointed to the Constitution Pipeline that extends across Susquehanna County into New York and on to markets in New England.
Stark noted that the one billion cubic feet of gas that Cabot’s wells in Susquehanna County have been producing each day since the end of December is enough energy to heat 25,000 homes a year.
He asked, “And, if you can get petroleum for $4 a gallon and natural gas for $1 what’s your choice going to be?”
Stark also acknowledged a social responsibility role for his company and handed out literature plugging the fact that Cabot had given more than $2.2 million toward a new hospital in Montrose.
It’s targeted to open in September, Stark said, and will, of course, run on locally generated natural gas.