Cabot Energy has operations throughout the US, but the Eagle Ford Shale, Haynesville Shale, and to the greatest extent the Marcellus Shale are the company’s core assets. In the Eagle Ford, Cabot operates over 60,000 net acres that span across four counties in South Texas. The company largely targets the liquids-rich and shale oil windows of the Eagle Ford where returns are supported by higher oil prices. Approximately one-third of the company’s acreage is operated by EOG Resources. Generally, Cabot Oil is operating one rig throughout 2012, with plans to focus on driving down costs through improving operational efficiencies.
Cabot Oil & Gas Corporation (NYSE: COG) is a growing US independent that has leveraged its ability into the many of the major shale plays. The company headquarters is in Houston, TX, and its South Texas assets are serviced by the Corpus Christi field office. The company’s reserves are located across the US in the Rocky Mountains and Mid-Continent, and the Gulf Coast (South and East Texas to North Louisiana). The company also operates over 3,000 miles of pipelines that service its upstream assets. The bulk of current activity is focused in Northeast Pennsylvania where the company targets the Marcellus Shale.
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Cabot Eagle Ford Shale Quarterly Commentary
Conference Call
October 27, 2011
Now let’s move to the south region. In our Buckhorn area in the Eagle Ford, the company has drilled 24 wells. Each well is 100% working-interest well in Frio and La Salle County. 21 of these wells are on production with 2 wells completing, 1 well waiting on completion and 1 well drilling. The 2 most recently completed wells produced at initial 24-hour rates of 938 barrels of oil equivalent per day and 791 barrels of oil equivalent per day.
In our AMI area with EOG, there are 6 wells currently on production in this 18,000-plus-acre area with 3 of these wells drilled and completed in the third quarter and the results are at anticipated levels. Gross production for both areas in the Eagle Ford is over 7,600 barrels of oil equivalent per day.
Science efforts drove our exploration cost above guidance essentially $0.03 for the quarter. Fortunately, we do have long lease terms remaining to work with. Now moving to 2012 plans in Pennsylvania for 2012, Cabot will have on average 5 rigs running. We’re planning 70 to 78 Marcellus wells. We also anticipate running 1.5 frac crews for the year. In Texas and Oklahoma, we will remain focused on acreage production. In the Eagle Ford, Cabot will drill or participate in 20 to 30 wells.
Plans call right now for the company to operate one rig in the Eagle Ford and one in the Marmaton. We believe our 2012 program will yield greater efficiencies from a dollar invested perspective than our 2011 program.
Conference Call
July 28, 2011
In our Buckhorn area, in the Eagle Ford, the company has drilled a total of 17 wells. Each well is 100%-working interest well in Frio County. 11 of these wells are on production, with 3 wells completing, 3 wells waiting on completion and 2 wells currently drilling. As the press release highlighted, 4 of the 11 producing wells were placed on production during the second quarter. These 4 wells each produced at a combined average initial 24-hour rate of 721 barrels of oil equivalent.
Up til now, we have had the flare of the residual gas, as there was no pipeline connection…..our new pipeline system now in place at Buckhorn. In partnership with the TexStar Midstream Services, the pipeline infrastructure commenced service in early July, and approximately 3 million cubic foot per day are presently being produced into the pipeline.
Our old pipeline infrastructure is scheduled to be in service early in the fourth quarter. Both projects will greatly enhance our overall operation in the Eagle Ford area. In our AMI area with EOG, there are 2 wells presently drilling in this 18,000-plus acre area. Cabot intends to participate, in total, 25 to 30 net Eagle Ford wells in 2011.
Press Release
April 27, 2011
“…In the Eagle Ford shale, the Company added three more successful operated completions with 24-hour initial production rates ranging from 345 to 958 barrels of oil per day equivalent. “This range of results highlights the variability as we continue to evaluate completion techniques in the early stages of development in this play,” stated Dinges. “Presently we have three more wells drilled, cased and in the queue for completion in our Buckhorn area.”…”
