Houston-based Cabot Oil and Gas purchased 30,000 net acres in the Eagle Ford shale play Thursday for $210 million from an unnamed buyer.
The assets produce about 1,600 barrels of oil equivalent per day, with liquids accounting for 92 percent of production.
The purchase also includes 17,000 net acres near a Cabot operated site in the adjacent Buckhorn lease.
Cabot now holds 60,000 net acres in Buckhorn and 83,000 acres in Eagle Ford, Texas.
The company has identified 191 net well locations in the new Eagle Ford assets.
Cabot is currently testing a 300 foot down spacing configuration at its Buckhorn site that could add up to 45 net locations on the newly acquired assets.
The company will add a fourth operated rig at Eagle Ford to drill in the newly purchased acres.
The deal is expected to close in October.
“In addition to the number of new locations, this acreage will allow synergies in our operations on many fronts including infrastructure and facility utilization,” Cabot’s chairman, president and CEO Dan O. Dinges said.