Cabot held their 2Q2010 earnings call on July 22nd in which they discussed Eagle Ford operations at length. One notable Eagle Ford topic was a Cabot/EOG JV in Atascosa County, TX. The JV includes 18,000 acres in the mature oil window. Each company is contributing 9,000 acres, EOG will be the operator. Reasons for the JV include intermixed acreage over the vast majority of the acreage. The fact that EOG is operator greatly benefits Cabot. EOG has been the industry leader in the Eagle Ford oil window as evidenced from the April Analyst Day presentation. Assuming EOG uses the same methods on this acreage as they are using throughout the oil window, they will bring simulfrac operations and restricted rate practices.
Regarding Cabot’s non-JV acreage, the company has drilled and cased it’s second well. They will commence completion operations in August and will spud their third well in late-July. Below is a map showing the locations of the early Cabot Eagle Ford wells and the potential location of the EOG JV. Cabot said that the JV was about 40 miles East of the latest wells. I took a look in the DI-ESP Unconventional Platform and noticed Cabot and EOG acreage in this area as well.
Cabot has 52,000 net acres in the Eagle Ford oil window primarily in Frio and Atascosa counties. They stated they will run a 1-2 rig program on their non-JV acreage and that EOG will run 2 rigs on the JV acreage through 2011.
For more information on the Cabot 2Q2010 Earnings Call, here is the link to the call summary located in the DNA Unconventional Updates. The summary has information on Cabot’s Marcellus, Eagle Ford and Haynesville programs. Use the Eagle Ford Unconventional Update to stay current on Cabot’s Eagle Ford wells and the JV acreage program.
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