Cabot Oil & Gas Corp., which is also active in the Marcellus, said Wednesday it is acquiring 30,000 net acres in the Eagle Ford for $210 million. Separately, Atlas Resource Partners LP announced a $225 million deal for Eagle Ford assets, marking its entry into the play.
The assets being acquired by Houston-based Cabot, from an undisclosed seller, have been producing 1,600 boe/d (92% liquids) and include 17,000 net acres near Cabot’s Buckhorn operating area, increasing the total Buckhorn leasehold position to 60,000 net acres and Cabot’s total Eagle Ford leasehold position to 83,000 net acres.
Based on current spacing of 400 feet between laterals, Cabot has identified 191 net locations on the additional Buckhorn area acreage with an average lateral length of more than 6,500 feet. The company is testing 300-foot downspacing across its Buckhorn position, which it said would add 45 net locations on the acquired leasehold. Cabot has added a fourth operated rig in the Eagle Ford to begin drilling on the newly acquired properties. The deal is expected to close in October.