Cabot to add 30,000 net acres to Eagle Ford leasehold
Cabot Oil & Gas Corp., Houston, has agreed to acquire 30,000 net acres in the Eagle Ford shale from an undisclosed seller for $210 million. The transaction is expected to close in October.
As of the effective date of the transaction, the assets were producing 1,600 boe/d, 92% of which are liquids, and include 17,000 net acres near Cabot’s Buckhorn operating area. The company’s Buckhorn leasehold position now totals 60,000 net acres and total Eagle Ford leasehold position totals 83,000 net acres.
Based on the company’s current spacing configuration of 400 ft between laterals, Cabot has identified 191 net locations on this additional Buckhorn area acreage with an average lateral length of more than 6,500 ft. The company is currently testing 300-ft downspacing across its existing Buckhorn position, which would add an additional 45 net locations on the acquired leasehold.
As a result of this transaction, the company has added a fourth operated rig in the Eagle Ford to begin drilling on the newly acquired properties.
“In addition to the number of new locations, this acreage will allow synergies in our operations on many fronts including infrastructure and facility utilization,” said Dan O. Dinges, Cabot chairman, president, and chief executive officer. “Our typical Buckhorn well yields an attractive return at current oil prices and this acreage will complement those returns.”