Houston-based Cabot Oil & Gas Corp. (NYSE: COG) is close to finalizing three separate agreements with regard to its Haynesville shale acreage, according to its latest quarterly report. The deals will reportedly consist of both a carried interest in certain wells and cash consideration for the sale of certain acreage and production.
Cabot is expected to maintain approximately two-thirds (22,000 net acres) of its existing position in the play with held-by-production acreage or by extensions and renewals on a limited number of acres.
An expenditure of approximately $5 million in 2011 would perpetuate this acreage with proceeds generated from the transactions.
In October 2010, Cabot retained BMO Capital Markets to assist in seeking a joint-venture partner to develop its Haynesville and Mid-Bossier shale leasehold in East Texas.
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