Cabot Oil & Gas announced results from the company’s first horizontal well in the Pearsall Shale and the short lateral yielded promising results. The well, drilled in Frio County, produced 1,400 boe/d, with 50% of production attributable to oil. One additional Pearsall well is being completed and three others are at some stage of being drilled. A total of 6 wells will be drilled targeting the play in 2012. The first well came in at a cost of just over $10 million, but the company is targeting $9-$9.5 million for its early wells.
In the Eagle Ford, the company completed one well in the quarter that came online at more than 1,000 boe/d, 95% oil. There are now 38 producing wells in the Buckhorn area in Frio County, TX. Well costs have fallen to $6.5-$7 million. [Read more…]