Cabot Oil and Gas (COG) held a conference call on October 26, 2010, to discuss the company’s earnings report for the third quarter of 2010. The company made comments on its operations in the Eagle Ford Shale, where it has operated acreage and is also in a joint venture with EOG Resources (EOG).
“The Company successfully completed its third Eagle Ford well, the Arminius Energy Trust #2H, which is a 100% operated Cabot well. Located in Frio County, it was drilled to a total depth of 13,175 with a 4,325 foot lateral and is cleaning up, and hit a peak rate of over 600 barrels equivalent yesterday. This well is located in our Buckhorn area.’
“The fourth Company-operated well, the Cromwell Ranch 1H, another 100% Cabot well located in La Salle County, was drilled with a lateral length of 6,000 feet and is scheduled for completion in the next couple of weeks.”
“Additionally, additional drilling in the prospect area is scheduled for later this quarter. Cabot holds approximately 53,000 net acres in the oil window of the play and has over 300 net potential locations.”
“Also in the Eagle Ford oil trend, drilling on our 18,000 acre area of mutual interest with EOG is scheduled to begin by year-end. Each company, as you might be aware, contributed 50% of the acreage in the JV with the operator EOG. The current plan is to keep at least one rig active in the JV area throughout 2011. With our South Region capital being allocated between our operated Buckhorn area and the EOG JV, we anticipate potentially doubling our oil volumes in 2011 from 2010.”