Cabot Oil & Gas Corp. has retained BMO Capital Markets to assist in seeking a joint-venture partner to develop its Haynesville and Mid-Bossier shale leasehold in East Texas.

The package includes interest in more than 63,000 gross acres (33,000 net) in San Augustine, Nacogdoches and Sabine counties. The properties are in a shale play “sweet spot” with two stacked target formations. The proposed remaining 2010 and 2011 to 2012 drilling plan includes 65 gross wells, 26 operated and 39 non-operated. The Nonoperated position includes operations by EOG Resources Inc., XTO Energy Inc., Exco Resources Inc., Devon Energy Corp. and Crimson Exploration Inc.

Net production during the fourth quarter is expected to be 27 million cubic feet of gas equivalent per day (50% from current assets) from 21 gross wells.

Cabot will consider a range of potential JV structures with a preference to divest 33% interest in current production and undeveloped leasehold for a combination of upfront cash and a capital expenditure carry on future new drills. Cabot would retain operatorship and conduct an agreed to drilling program.

The data room opens Nov. 8. The bid due date is Dec. 15. Contact Miles Redfield, 713-546-9715, miles.redfield@bmo.com.