|Cabot Oil & Gas Continues County Line Success; New Acreage Play in Appalachia|
HOUSTON, Oct. 25 /PRNewswire-FirstCall/ -- Adding to a release earlier this month, Cabot Oil & Gas Corporation (NYSE: COG) today announced another successful horizontal James well at County Line in east Texas. The Timberstar-Worsham #1 well (78% working interest) has been completed and is flowing to sales at a rate of 12.2 Mmcfe per day. The lateral length was 4,636 feet with a seven-stage frac. "To capitalize on the success in the James, we are adding capital to drill four more wells this year and plan to drill 32 wells for 2008," said Dan O. Dinges, Chairman, President and Chief Executive Officer. The field is producing at a restricted rate of approximately 19 Mmcf per day from five horizontal James wells, with two wells drilling and one well completing. Additional pipeline capacity is anticipated in the next several weeks.
In other Gulf Coast region news, the Company is encouraged with the results at its latest Floyd shale well drilled in the Black Warrior basin. This vertical well adds critical data points to the ongoing evaluation of the Floyd shale. "We plan one more test for this year with additional drilling scheduled for 2008 depending on the economic climate," Dinges added. "I appreciate the anticipation of definitive results; however, it does take a great deal of investment (time and money) and analysis to determine the economic viability of a rank play concept such as this. We are being diligent in our effort."
In southern West Virginia, Cabot has recently completed two exceptional wells in its traditional vertical program. The Pocahontas M94R tested at 7.0 Mmcf per day after frac, while the Lyons #5 tested over 10.0 Mmcf per day. Combined, these wells are producing to sales over 3.2 Mmcf per day.
Additionally, Cabot has leased over 86,000 net acres in the Marcellus play. "We have drilled two wells to date and plan to expand this effort to a 20-well Marcellus program in 2008," commented Dinges.
Cabot will return to production those volumes shut-in during October on November 1, 2007, as requested by a majority of the partners. Because the low realization on unhedged natural gas production continues, the Company is initially limiting its 2008 capital program for the Rocky Mountains and instead will focus on its extensive acreage position in the East, east Texas and Mid-Continent. Additionally, hedges have been added to protect a majority of anticipated Rocky Mountain production for 2008. "These new hedges provide protection on 22.6 Mmcf per day at an average net back price of $6.85 per Mcf," stated Dinges. "Because of the dynamics of the current market we did swap a portion of these volumes."
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 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