HOUSTON, April 14 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation
(NYSE: COG) announced today a definitive agreement to sell its Canadian
operations to a private Canadian company for a combination of cash and stock.
Total consideration (denominated in Canadian dollars) for this transaction is
CAD$78 million in cash, along with CAD$24 million in new equity. The sale is
expected to close on, or before, May 1, 2009 and is subject to due diligence
and other customary closing conditions. "We announced our intent in February
to explore the market for a Canadian asset sale, and we are pleased that in
this market an agreement was reached," said Dan O. Dinges, Chairman, President
and CEO. "Once closed, this further focuses Cabot's regional extent and
provides capital to reduce our debt position."
At year end 2008, Cabot's reserve report included 40.4 Bcfe of proved
reserves in Canada. "This figure was limited to some extent due to our plans
to suspend capital investments in Canada for 2009," commented Dinges. "Over
the last several years, Cabot had assembled a nice asset package in Canada,
but with our recent success in other basins, Canada became less strategic,
long-term." The effective date of the sale is April 1, 2009 and therefore does
not impact first quarter production expectations.
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 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
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation