Results From Cabot's Exploratory Wells Unsatisfactory
From a Cabot Oil & Gas press release:
Fourth-quarter 2018 operating expenses (including financing) decreased to $1.87 per Mcfe, a seven percent improvement compared to the prior-year period. All operating expenses per unit were in-line with the Company's guidance for the quarter except for depreciation, depletion and amortization and exploration, driven by higher amortization of undeveloped leasehold and exploratory dry hole costs associated with unsuccessful drilling results in our exploration areas. "After further evaluation of our remaining exploration prospect, we have determined that this area is unlikely to yield results that generate long-term value creation for our shareholders," noted Dinges. "As we have said through this entire evaluation process, we remain committed to deploying capital judiciously and if a project fails to generate competitive full-cycle returns, then we will not allocate additional capital to it going forward."The exploration area in question here is Ashland County, and it is apparent from this release and further comments during the company's fourth quarter earnings call with reporters that Cabot is not planning any more activity in the area at this time. Read the whole press release by clicking here.