Cabot to buy East Texas assets

Cabot Oil & Gas Corporation has executed a definitive agreement to acquire producing properties, leasehold acreage and a gathering infrastructure from a private party for $602.8 million.

These properties were acquired by Cabot to realize significant growth in production and reserves and also to capture additional opportunity to exploit the Bossier/Haynesville.

Cabot has drilled 77 wells in the Minden area on its 12,700 acres with a 100% success rate since our initial discovery in 2006. The acquired acreage lies in immediate proximity to our existing acreage, which enhances our ongoing development of the Pettet, Travis Peak and Cotton Valley formations. There is also significant incremental exposure to the emerging Bossier/Haynesville opportunities, said Dan O. Dinges, Chairman, President and Chief Executive Officer

To lock in margins and to ensure cash flow to execute the drilling program without dilution to Cabot’s 2008 capital program, the Company placed swaps covering estimated production for the remainder of 2008, and all of 2009 and 2010.

Source : http://www.cabotog.com/