|Cabot Oil & Gas Corporation Announces Two Drilling Successes in the Beaurline Field (Third Quarter Outlook)|
HOUSTON, Sept. 21 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the successful completion of two wells in the Beaurline field in Hidalgo County, Texas. The Beaurline 13 and 18 wells mark the eighth and ninth successful wells in this field since 1995. Cabot Oil & Gas is the operator and has 100% working interest in both wells which are producing from the Vicksburg formation.
The Beaurline 13 well started producing in September from the "S" sand at 12,392 feet and is currently producing 1.5 Mmcfe per day on a 10/64-inch choke with 5,250 psi flowing tubing pressure. Additional pay behind pipe is present up-hole in the "R" sand.
The Beaurline 18 well, which was completed at the end of August, was fractured in the lower lobe of the "W" sand at a depth of 12,670 feet. The well is producing 2.1 Mmcf and 45 barrels of condensate from a 12/64-inch choke at 2,825 psi flowing tubing pressure. An additional completion is planned for the upper "W" sand at 12,232 feet.
"We are pleased with the additional discoveries in the Beaurline field," said Ray R. Seegmiller, President and CEO. "Production from these two wells will help offset the recent production decline in the field that we have experienced due to down-hole mechanical problems in three of the wells. When these wells are back on-line, which is expected during the fourth quarter, production is anticipated to exceed August 1, 1998 production levels from the field of 22 Mmcfe per day."
Seegmiller added, "The third quarter typically presents the greatest challenge for the Company in terms of performance. Historically, this quarter provides the lowest price levels of the year at a time when exposure to dry holes is at its highest due to increased drilling activity. This year is no different with realized prices expected to be 8% below and a drilling program 20% above last year's comparable third quarter figures. As a result, it will be difficult for us to realize the continued quarterly profits we have enjoyed over the last two and one-half years. However to date, including the impact of two dry holes in the third quarter, the Company has experienced an 86% drilling success rate. This high success rate, combined with the high level of well completions in the near-term, should result in year-end production levels previously unmatched by Cabot Oil & Gas Corporation."
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 Mountains, and Gulf Coast regions. For additional information about Cabot Oil & Gas Corporation, 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 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