Cabot executives recently announced plans to drill three Eagle Ford wells in second half of the year.
Related: Cabot Reduces Spending & Activity in Eagle Ford
Cabot Oil and Gas delivered their 2016 first quarter results last week and credited their solid performance to financial discipline.
Quarterly highlights include a net loss of $55.4 million along with a positive cash flow of $62.1 million. The company decreased operating expenses to $2.26 per thousand cubic feet equivalent (Mcfe), a 3 percent improvement compared to $2.33 per Mcfe in the first quarter of 2015.
“At the current strip, our plans for the remainder of the year are focused solely on maintaining all of our leasehold obligations through 2016, and not increasing our operating activity above these minimum levels. However, our anticipated backlog of 15 drilled uncompleted wells at year end 2016 does allow for flexibility.”
Eagle Ford Activity
During the first quarter of the year, Cabot continued to focus on capital efficiency and cost savings for its Eagle Ford operations. Completions costs were down by approximately 30% compared to the same quarter in 2015. The company is not currently operating any rigs in the Eagle Ford Shale, but have plans to drill three additional wells in the second half of 2016.
Other Eagle Ford highlights include:
- Net oil production was 11,908 Bbls per day, a decrease of 6 percent sequentially compared to the fourth quarter of 2015.
- Drilled 3 net wells and completed and placed nine net wells on production
- Wells have an average completion lateral length of 7,760 feet
- Completed the company's longest Eagle Ford well to-date with 46 stages and a lateral length of 11,200 plus feeta