Cabot Oil & Gas Corp. (COG) discussed its acreage in the Haynesville Shale during its third quarter earnings conference call. Cabot Oil and Gas just completed its first well in the Haynesville Shale, and reported an initial 24-hour production rate of 21 million cubic feet (mmcf) per day. The well was drilled with a 3400-foot lateral and a 14 stage hydraulic fracturing operation.
Potential of Haynesville Shale for Cabot Oil and Gas
“Cabot controls 61,000 gross acres, 32,000 net acres over the Haynesville shale area. We think we have anywhere between 150 to 250 gross locations on this acreage with under risk resource potential between 750 Bcf to 1 TCF plus.”
2010 Capital Plans
“Our early 2010 plans approved by our Board yesterday include five Haynesville shale wells.”
“With the recent positive results from our first horizontal Haynesville shale well, we will probably rethink our capital allocation in this area with an eye towards expanding our Haynesville exposure.”
Well Costs
“On the Haynesville well, we were about $10 million with that 14 stage frac.” Source: Seeking Alpha
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