New Atascosa leasing activity between Moore and Poteet

It seems that Cabot Oil & Gas Company (a major player in the Eagle Ford) has recently started a very active lease acquisition program which is the north of the existing Eagle Ford exploration, and is specifically targeting Pearsall. Leasing activity seems to be on a fairly broad band running from Moore, Texas in Frio County eastward to Poteet in Atascosa County.

(It would be very interesting to learn just how wide this "band" turns out to be.)
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Cabot is being paid $14,285/acre by Osaka Gas Co. of Japan for Pearsall formation acreage only. The $250 million deal is for a 35% interest 50,000 acres in Atascosa, Frio, La Zalle and Zavala counties, and does not include any of the Eagle Ford formation above the Pearsall.

First of two rigs for the Pearsall JV program this year to begin July, 2012, with 3rd rig in 2013; 4th in 2014.

Cabot's chairman says: "We believe the Pearsall Shale could prove to be an additional liquids-rich catalyst in our portfolio and are pleased with the results we have seen to date - both internally and from neighboring peers."

Keep us updated about the Poteet line.

Heard they were even leasing into Bexar county, but not confirmed. Also heard that they were going to leave Atascosa County soon.

Please clarify what you mean about "leaving" Atascosa County. If they are leasing there, why would they leave?



J said:

Heard they were even leasing into Bexar county, but not confirmed. Also heard that they were going to leave Atascosa County soon.

I think their leasing agent is Elite Land Services and they indicated they were going to move to another county soon and concentrate on a different county. Didn't say why or where they might be going. Indicated they were still going to close the offers they had made in Atascosa County.

Paris Eugene Smith said:

Please clarify what you mean about "leaving" Atascosa County. If they are leasing there, why would they leave?



J said:

Heard they were even leasing into Bexar county, but not confirmed. Also heard that they were going to leave Atascosa County soon.



J said:

I think their leasing agent is Elite Land Services and they indicated they were going to move to another county soon and concentrate on a different county. Didn't say why or where they might be going. Indicated they were still going to close the offers they had made in Atascosa County.

Paris Eugene Smith said:

Please clarify what you mean about "leaving" Atascosa County. If they are leasing there, why would they leave?



J said:

Heard they were even leasing into Bexar county, but not confirmed. Also heard that they were going to leave Atascosa County soon.

I have definitively established that the preceding information is not accurate, at least with respect to Atascosa County, where Elite Land Services is continuing an active leasing program currently.

thanks!

Paris Eugene Smith said:

I have definitively established that the preceding information is not accurate, at least with respect to Atascosa County, where Elite Land Services is continuing an active leasing program currently.

Have been offered a lease for $525 and 20%. Acreage is near FM2146 and CR300. Assume this may be from Cabot Oil. They want a term of 3/2 years. Offer is recent.