|Cabot Oil & Gas Corporation Reports Appalachian Exploration Success|
HOUSTON, April 7 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the continuation of its successful exploration program with the completion of two wildcat Oriskany discoveries and a prolific development well in West Virginia. Each well tested at or above four million cubic feet per day following fracture stimulation and is expected to average production of one million cubic feet per day, per well.
Charles P. Siess, Jr., Chairman and Chief Executive Officer stated, "The excitement about these wells is that the reserves are three times that of a typical Appalachian well with production levels four times the average Appalachian well. In 1995, we commenced our focus on exploring for new horizons and, in particular, the elusive Oriskany sandstone in West Virginia and Pennsylvania was one of our first and most desirable targets." Siess added, "These latest successes further establish credibility and confidence in our exploration program."
The two wildcat discoveries, the Marstiller #1 and #2, are part of the Oriskany exploration program in West Virginia, where Cabot Oil & Gas explored fault blocks adjacent to the previously announced Oriskany discovery -- the M. Kisamore #1 well. The Marstiller #1 well, located in Randolph County, West Virginia, was drilled to a total depth of 9,537 feet and preliminary data suggests that this discovery may be in a separate fault block from the M. Kisamore #1 well, providing additional optimism. The Company is in the process of incorporating the newly acquired well data into its reservoir and geologic models to determine the extent of development opportunities in this fault block.
The Marstiller #2 well was drilled to a total depth of 8,394 feet and is also believed to be in a separate fault block from the Marstiller #1 well. In addition, this discovery has set up at least one development location. The Company's reservoir engineering staff estimates the unrisked potential reserves from these Oriskany discoveries to be in excess of 7.5 billion cubic feet net. Cabot Oil & Gas holds a 100% working interest in the wells and approximately 11,300 net acres in the trend. To further exploit this find, a significant seismic program is planned this summer.
In the Company's development program, a significant extension well was successfully completed on its acreage in McDowell County of southern West Virginia. The Pocahontas Land C-18 well drilled to a depth of 4,255 feet and was completed in the Weir sandstone and the Big Lime. This successful well tested in excess of 4 million cubic feet per day. The well was drilled on a sparsely developed portion of the large Pocahontas Land "C" lease and potentially sets up a large number of additional drilling locations. Recoverable reserves from the C-18 have been estimated at 575 million cubic feet net.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Appalachia, Anadarko, Rocky Mountain and Gulf Coast regions. For additional information about the Company, visit COG's internet home page 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 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