Cabot’s First Pearsall Well Impresses – Eagle Ford Prices Improve

Approximately 30% of the 2013 capital budget will be allocated to South Texas
Cabot Oil & Gas Pearsall Shale Target Area Map

Cabot Oil & Gas Pearsall Shale Target Area Map | Click to Enlarge

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…]

Cabot Oil & Gas Q3 2011 Eagle Ford Operations Update

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. [Read more…]