Energy analyst and Seeking Alpha blogger Richard Zeits listened in to the recent Cabot Oil & Gas investor’s conference call and came away with some mind-blowing numbers. The bottom line from the call and from Zeits’ analysis is that Cabot has indeed found a “super-productive” location in Susquehanna County, PA where they own leases on about 200,000 acres. New wells they’ve recently drilled prove that all of their acreage is in this sweet spot.
One startling find by Zeits: A well drilled by Cabot in Susquehanna County has, in just 667 days, produced a cumulative 8 billion cubic feet of natural gas–a single well! That equates to an average of 12 million cubic feet of natural gas per day from that one well. Astonishing. (No wonder Southwestern just picked up an additional 51,000 acres from Chesapeake in Susquehanna County earlier this week, for an average of $574 per acre. Chesapeake was taken to the cleaners).
Here’s some of Zeits’ analysis of the Cabot call, with lots of facts and figures: