|Cabot Oil & Gas Provides an Operations Update; Drilling Success in Multiple Areas|
HOUSTON, July 25 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced further drilling success at County Line, McCampbell, Hinton and provided an update regarding its east horizontal program. "Our overall program is on track and through six months we have experienced a 98 percent success rate on 222 gross wells drilled," said Dan O. Dinges, Chairman, President and Chief Executive Officer.
At County Line in east Texas, the Company recently completed the Timberstar #1 (100% working interest) well, a 4,200' horizontal Pettet test. The well tested at 480 barrels of oil per day and 500 Mcf per day. "With this Pettet success along with last month's announced Timberstar #2 horizontal James (100% working interest) well, Cabot has experienced 100% success in its horizontal drilling program," commented Dinges. "If you recall, the Timberstar #2 is curtailed due to pipeline constraints that should be resolved by September."
Additionally at County Line, the Company continues to expand its acreage holdings where it now holds approximately 18,000 gross acres. "Because of this success and others, we are expanding our capital program from $435 million to $500 million, some of which will be used to increase our program at County Line by nine horizontal wells during 2007," added Dinges.
In south Texas, the Flinn #1 (92% working interest) in the McCampbell Field, is flowing to sales of 3.5 Mmcf per day and 484 barrels of oil per day with a flowing tubing pressure of 5,710 lbs. "This development well is one of five that will be drilled through the rest of the year," said Dinges. "We expect to keep one rig busy here throughout the remainder of 2007."
At Hinton, the Company is completing its fourth well with a 60% working interest. "We recently stimulated the lower-most of two Mountain Park zones and are currently flow testing at rates up to 12.2 Mmcf per day," expressed Dinges. "Assuming success, we have sufficient capacity to produce this well due to our pipeline expansion earlier in the year. We plan to drill two additional wells at Hinton this year."
The Company's horizontal play in the East commenced production in early to mid-June and has had to curtail levels due to the percentage of frac nitrogen experienced with initial production. Cabot has recently added a fifth well to the production stream, which should assist with the overall percentage of frac nitrogen in the well stream. "In spite of this, we have been able to determine that these wells, based on initial production levels, could average 1.0 to 1.8 Bcfe of reserves each," stated Dinges. The drilling of additional horizontal wells will recommence in August.
"Last year when we sold our south Louisiana and offshore portfolio, we expected to be back at pre-sale levels of daily production by early in this year's fourth quarter, and we still expect those targets to be met," added Dinges.
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 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