Cabot Oil & Gas had a good day as the company announced earnings . The stock jumped more than $10 per share or 17%. The company is largely focused on its core position in the Marcellus Shale of Northwest Pennsylvania, but Cabot did provide updates related to the Eagle Ford. In 2011, the company will participate in 25-30 net wells. Cabot is planning to operate one rig in the play throughout 2012. The company’s last two wells in the Buckhorn area of Frio County produced almost 800 boe/d and over 900 boe/d.
In the Buckhorn area in the Eagle Ford, the company has drilled a total of 24 wells. Each well is 100% working-interest in Frio and La Salle County. 21 of these wells are on production with two wells completing, one well waiting on completion and one 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 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. Cabot intends to drill or participate in 25 to 30 net Eagle Ford wells in 2011.
Read the company’s full press release at cabotog.com