Cabot Oil & Gas has signed a definitive agreement with a wholly-owned U.S. subsidiary of Osaka Gas Co., Ltd. for the sale of a 35 percent non-operated working interest in the Pearsall Shale in approximately 50,000 net acres leased by the Company in Atascosa, Frio, La Salle and Zavala counties of Texas for a total price of $250 million.

Closing of the transaction, including the joint venture agreement, is anticipated to occur on June 26, 2012. Under the agreement Osaka will pay $125 million in cash to Cabot at closing and will pay an additional $125 million to carry 85 percent of Cabot's share of future drilling costs ("drilling carry") in the Pearsall Shale.

Tags: Cabot Oil & Gas Corporation