By OGJ editors
HOUSTON, July 28 -- Cabot Oil & Gas Corp. agreed to sell its producing natural gas assets and acreage in Wyoming, Colorado, and Utah to an undisclosed third party for $285 million. The assets being sold are primarily in Wyoming’s Green River basin.
The transaction, which remains subject to closing adjustments, will have an effective date of Sept. 1 and is scheduled to close in early October. After closing, Cabot will remove from its books 170 bcf of gas equivalent in reserves and 27 MMcfed in production.
“We have not allocated capital to these assets since early 2009, and we have no near-term plans for new investments due to other opportunities,” said Dan O. Dinges, chairman, president, and chief executive officer.
Proceeds from the sale will be invested into Cabot’s Marcellus shale activity in Pennsylvania and its liquid-rich assets in the South Texas Eagle Ford shale and the Marmaton shale in the Texas and Oklahoma panhandles.
Cabot is keeping its prospective oil shale acreage in both Montana and Nevada. "To that end, we are still evaluating our first Heath shale well in Montana," said Dinges.