Phoenix Exploration to buy Cabot Oil & Gas assets

Aug. 29, 2006
Phoenix Exploration Co. LP agreed to buy Cabot Oil & Gas Corp.'s offshore assets and its south Louisiana properties for $340 million. Both companies are based in Houston.

By OGJ editors
HOUSTON, Aug. 29 -- Phoenix Exploration Co. LP agreed to buy Cabot Oil & Gas Corp.'s offshore assets and its south Louisiana properties for $340 million. Both companies are based in Houston.

Subject to closing conditions, the sale is expected to be finalized by Sept. 29. Cabot said it plans to repurchase stock, fund operations, and repay a portion of its outstanding debt.

The transaction includes 73 bcf of gas equivalent of proved reserves as of Dec. 31, 2005. Production for the assets being sold averaged 49.4 MMcfd for the first 7 months of this year.

Subsequent to the sale, Cabot's total proved reserves and its production profile will be 96% gas.