Cabot Oil & Gas Corp. (NYSE: COG) is offering South Texas assets for sale in seven separate packages through EnergyNet.
The assets consist of operations, nonoperated working interest, royalty interest, overriding royalty interest and leasehold. The sale includes interest in more than 100 wells and about 22,000 gross acres across Aransas, Colorado, Goliad, Hidalgo and Willacy counties, Texas. A separate package in Hidalgo and Starr counties is being auctioned.
Sealed-bid offers on Cabot’s interests are due by 4 p.m. CT on Oct. 5. The auction being held for interests in Hidalgo and Starr closes at 1:45 p.m. CT Oct. 5.
For more information visit energynet.com or contact EnerygNet's Cody Felton at 281-221-3042.
Aransas Sealed-Bid—22 Wells/Leasehold Acreage
Cabot is selling its operated working interests, overriding royalty and royalty interests in 22 wells plus leasehold acreage, located in Aransas County, Texas.
Highlights:
- 2,124.34 gross (1,966.89 net) leasehold acres;
- 92.47%-99.73% working interest and 66.76%-75.1% net revenue interest in 22 operated wells;
- Additional 0.26%-5.5% royalty interest in 10 wells;
- Additional 0.12%-0.98% overriding royalty interest in 20 wells;
- 16 producing, five temporarily abandoned and one shut-in well;
- Six-month average 8/8ths production is 1,112 thousand cubic feet per day (Mcf/d) and 94 barrels per day (bbl/d) of oil; and
- Five-month average net cash flow of $73,810 per month.
Hidalgo Sealed-Bid—12 Wells/Leasehold Acreage
Cody Texas LP, a subsidiary of Cabot, is selling its operated working interests and royalty interests in 12 wells plus leasehold acreage, located in Hidalgo County, Texas.
Highlights:
- 4,461.2 gross leasehold acres;
- 3,777.2 net acres (0 - base Frio 'L')
- 1,526.88 net acres (below base Frio 'L')
- 100% working interest and 64.96%-89.57% net revenue interest in 12 shut-in operated wells; and
- Additional 2.18% royalty and 0.1% royalty interests in three wells.
Colorado Sealed-Bid—Five Wells/Leasehold Acreage
Cabot is selling its operated working interests in five wells plus leasehold acreage, located in Colorado County, Texas.
Highlights:
- 57.88% working interest and 44.76% net revenue interest in five operated wells;
- Three producing and two temporarily abandoned wells;
- 352-acre unit;
- Limited from 9,012 feet to 50 feet below the Cruel Sand Formation;
- Six-month average 8/8ths production of 252 Mcf/d and 2 bbl/d of oil; and
- Seven-month average net cash flow of $6,091 per month.
Goliad Sealed-Bid—20 Wells/Leasehold Acreage
Cabot's subsidiary Cody Texas is selling its operated and nonoperated working interests and royalty interests in 20 wells plus leasehold acreage, located in Goliad County, Texas.
Highlights:
- 3,971.465 gross (2,942.84 net) leasehold acres;
- 270.34 gross (171.94 net) acres limited to depths below 5,000 feet;
- Operated working interest in 16 wells (additional 0.75% royalty interest in seven wells);
- Bego Gas Unit (One active service, two shut-in);
- 83.48%-96.15% working interest and 62.96%-72.69% net revenue interest;
- Dorris Gas Unit (temporarily abandoned well);
- 96.15% working interest and 72.69% net revenue interest;
- Gayle Gas Unit (two producing and one temporarily abandoned well);
- 100%-97.14% working interest and 77.93% net revenue interest;
- Price Gas Unit (two temporarily abandoned wells)
- 51.79%-64.5% working interest and 39.7%-49.24% net revenue interest;
- Strong Gas Unit (seven producing wells);
- 96.15% working interest and 72.69% net revenue interest;
- Bego Gas Unit (One active service, two shut-in);
- Nonoperated working interest in four wells;
- Post Gas Unit (three producing and one temporarily abandoned well)
- 2.39%-19.17% working interest and 2.07%-14.76% net revenue interest;
- Post Gas Unit (three producing and one temporarily abandoned well)
- Operated by EnergyQuest II LLC;
- Six-month average 8/8ths production of 1,840 Mcf/d and 19 bbl/d of oil; and
- 12-month average net cash flow of $24,757 per month.
Willacy Sealed-Bid—23 Wells/Leasehold Acreage
Cabot's Cody Texas is selling its operated working interests and overriding royalty interests in 23 wells plus leasehold acreage, located in Willacy County, Texas.
Highlights:
- 3,776.17 gross (3,579.17 net) leasehold acres;
- 22.81%-95.92% working interest and 16.27%-83.93% net revenue interest in 23 operated wells;
- Additional 0.01%-7.27% overriding royalty interest in nine wells;
- Five producing, one active service and 17 temporarily abandoned wells;
- Six-month average 8/8ths production is 13 bbl/d of oil and 70 Mcf/d; and
- Seven-month average net cash flow is $3,527 per month.
Hidalgo Sealed-Bid—20 Wells/Leasehold Acreage
Cabot's Cody Texas is selling its operated and overriding royalty interests in 20 wells plus leasehold acreage, located in Hidalgo County, Texas.
Highlights:
- 7,725.2 gross (5,864.99 net) leasehold acres;
- Operated working interest in 20 wells (additional 0.00854% overriding royalty interest in two wells);
- 100% working interest and 86.51%-87.5% net revenue interest in 11 wells (five producing and six temporarily abandoned);
- 86.87% working interest and 81.51% net revenue interest in the temporarily abandoned Beaurline Field, AW #09-R;
- 81.06% working interest and 70.42% net revenue interest in the temporarily abandoned Beaurline Field, AW #09;
- 63.03% working interest and 54.76% net revenue interest in seven wells (six shut-in and one temporarily abandoned); and
- Six-month average 8/8ths production is 244 Mcf/d and 2 bbl/d of oil.
Hidalgo & Starr Auction—Five Wells
Cabot is auctioning its nonoperated working interests in the wellbores of five wells located in Hidalgo and Starr counties in South Texas.
Highlights:
- 62.5% working interest and 46.87% net revenue interest in five wells;
- Two producing, one active service and two temporarily abandoned wells;
- Six-month average 8/8ths production is 89 Mcf/d and 0.35 bbl/d of oil;
- Four-month average net cash flow is $969 per month; and
- Operated by Smith Production Inc.
The auction opened Sept. 28 and closes at 1:45 p.m. CT Oct. 5.
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