|Cabot Oil & Gas Announces East Texas Horizontal Success|
HOUSTON, June 11, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Cabot Oil & Gas Corporation (NYSE: COG) today provided a mid-quarter operations update that included horizontal drilling success at County Line and Minden in East Texas, significant progress in the east horizontal program at Hurricane and positive indicators at the Hinton project in Canada.
Gulf Coast -- County Line
The Company recently completed two (100% working interest) confirmation wells at the County Line project in Shelby County, Texas. The Timberstar #2, a horizontal James well, was completed in a 4,549 foot horizontal leg and is currently producing at a pipeline restricted rate of 2.2 Mmcf per day. The Timberstar #1, a horizontal Pettet well, is currently testing following fracture stimulation.
"Based on the confirmation of our earlier success in this area, Cabot plans to drill at least five additional wells at County Line during 2007," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "Because of the production potential from this area and our increased level of drilling, the Company is currently adding infrastructure to significantly increase downstream capacity."
Gulf Coast -- Minden
At Minden, Cabot completed its first horizontal well, the Pinkerton 9H which had a 2,200-foot lateral, six-stage frac and is currently producing at 2.1 Mmcf per day. "This well was drilled horizontal to exploit our minerals when surface access was not allowed under one of our leases," added Dinges. "We will utilize horizontal technology at Minden when appropriate, but this remains predominately a vertical play due to the production rates we achieve with our ability to complete in multiple formations."
Gulf Coast -- Mayberry
Cabot Oil & Gas is drilling its fourth well in the Company's 640,000-acre Black Warrior unconventional reservoir play in Mississippi. The Harrington Barrett #1 is designed to test the Lewis sands at 4,300 feet as a primary objective. Cabot is collecting data points in the tight sands and shales across this large acreage position.
East -- Hurricane
Cabot Oil & Gas has initiated production at its horizontal Hurricane pilot project in Putnam County, West Virginia. Since late last year Cabot has successfully drilled six horizontal wells testing the Huron shale in this area, all of which have been waiting on pipeline infrastructure.
Four of the six wells have been tested with an initial production rate that exceeds 1,000 Mcf per day, with one well slightly below that level and the other waiting on a completion unit. Lateral displacement on the horizontal wells is between approximately 2,650 feet to 3,680 feet.
Based on the successful results, Cabot plans to drill up to ten additional horizontal wells at Hurricane during 2007. "Production coming from this area commenced this past weekend and is ramping up at the time of this release," stated Dinges. "We are excited about achieving our initial production from this pilot program and the continued successful expansion of the area with additional drilling. We will apply what we have learned in Hurricane to other areas within our extensive acreage position in the East."
Canada -- Hinton
Cabot Oil & Gas has drilled and cased the Cabot RSX Hinton 9-20 well, the fourth well drilled in Hinton Field in Alberta, Canada. The well reached total depth of 11,820' in May 2007. The well found 164 feet of gross thickness in Mountain Park sandstone (60 feet of net pay) at a structural position 213 feet high to the Hinton discovery well. Reservoir development and quality is comparable to that encountered in the Hinton 11-16 discovery. Completion operations are scheduled to begin in late June. "This was the first well drilled at Hinton with the benefit of 3-D seismic, and, from the early evaluation, this one is significantly better than the second and third wells drilled in the play," commented Dinges.
West -- Nelson Creek
The Nelson Creek #25-13 wildcat, a Honaker Trail well located in the Paradox Basin of western Colorado, has been plugged and abandoned. Extensive testing of numerous zones in the Ismay and Honaker Trail formations did not yield commercial flow rates of gas. The Company is evaluating additional potential under this acreage block.
"Additionally, in light of the recent weakness in natural gas pricing in the Rocky Mountains, we wanted to highlight that 57 percent of our volumes that could be impacted by the recent basis blowout (in the daily spot market) are protected by hedges with a $7.00 per Mmbtu floor," said Dinges. "This leaves only about 15,000 Mmbtu exposed to the Rocky Mountain market, which has an index average of $4.70 per Mmbtu year-to-date."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent natural gas producer with substantial interests in the Gulf Coast, including Texas and Louisiana; the West, with the Rocky Mountains and Mid Continent; the East and a new position in Canada. For additional information, visit the Company's Internet homepage at http://www.cabotog.com.
The statements regarding future financial performance and results and the other statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, market factors, the market price (including regional basis differentials) of natural gas and oil, results of future drilling and marketing activity, future production and costs, and other factors detailed in the Company's Securities and Exchange Commission filings.
SOURCE Cabot Oil & Gas Corporation