Cabot’s asset portfolio is spread principally between low-risk/long reserve-life (27 years) Appalachian assets (Marcellus Shale) and high-volume/rapid-payout (estimated reserve life of 13 years) prospects in the Gulf Coast (East and Southeast Texas). Although most of its of its 2010 capital budget is geared toward expanding takeaway pipeline capacity and ramping up production at its core Marcellus holdings in Susquehanna county, PA, management has still budgeted about $181 million of capital funds for drill-bit activity on Haynesville Shale prospects in East Texas.
Dinges said at a recent energy conference that the company expects drilling results from three other Haynesville Shale wells during this quarter.
But other stuff is happening that could derail the company’s ambitious drill program this year.
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Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.