Friday, December 31, 2010

Marcellus Shale stakeholder Cabot Oil & Gas puts base in Pittsburgh - Kansas City Business Journal:

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a Houston-based energy firm, is making Pittsburgjh its base for a growing operation in the Marcellus Shale naturaogas play. Though its 160,000-acre Marcellus leaseholsd is in and around Susquehanna County in the northeast part of the western Pennsylvania will be itsregional center, the companyy announced. “Pittsburgh has kind of become the Marcelluswcompany capital, so to speak,” said CFO Scott Schroeder. “It doesn’t make sense to be an outlier.” He added that Caboty already is familiar with theSteel City, where it had an officde until 1997, when it sold its Pennsylvania land and moved to Charleston, W.Va.
The regional energy hub makese sense from abusiness standpoint, said Lou executive director of the Independent Oil and Gas Association of Pennsylvania. “Dealing with various company leaderships, with meetinges we have, industry groups, seminars there’s a lot of good reasonas to be in thesame area,” he said. In announcingy the move, Cabot said it will close its regionakl officesin Charleston, W.Va. and Denver, and manages all Pennsylvania, West Virginia and Rocky Mountai n assetsfrom here. The move indicates where the compangy intends its future capital willbe spent.
In Cabot announced it was selling its Canadiann operationfor $72 million in cash and $68 milliomn in new equity. Schroeder said the firm is activelt pursuing more acreage around itsSusquehanna leasehold, but not in the westernb part of the state. The company has arounfd 30 wells in the Marcellus Shalsein Pennsylvania. It has drilled eight horizontal wellss in that area and completed four of As foroffice space, he said Cabot has identifiedc a desired spot in the Pittsburgh region, but declined to name it untilo the office space is secured.
Schroeder said the branch’a technical staff of around 40 engineeres andgeologists — 25 are being asked to relocate from West Virginiq and 10 to 15 from Coloradio — will be in their new quarters by the end of

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