|Cabot Oil & Gas Acquires Rocky Mountain Property|
HOUSTON, Nov. 30 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the purchase of three producing wells and 5,400 acres located in the Lookout Wash Unit in Carbon County, Wyoming, from Oxy USA, Inc. for $5.2 million. Cabot Oil & Gas will receive proved reserves of 11.2 Bcfe, current daily production totaling 1 Mmcfe net, and more than 10 potential drilling locations.
"This acquisition expands our Rocky Mountain drilling operations to the east of the Moxa Arch area and increases our Rocky Mountain reserves by nearly five percent," said Ray R. Seegmiller, President and CEO. "By extending our holdings, within this core Rocky Mountain area, we increase the efficiency of our operations which maximizes our returns." Seegmiller added, "These are exactly the types of deals we are seeking which capitalize on our financial flexibility within our core areas."
Potential wells in the Lookout Wash Unit will be drilled to an average total depth of 11,000 feet and produce from the Almond formation. Nearly 100 percent of production, both from wells currently on-line as well as proved and probable reserves, will be natural gas.
Cabot Oil & Gas has been active in the Rocky Mountains since 1994. Production in the area comes from more than 420 wells, 47 percent of which are operated by Cabot Oil & Gas, on 76,057 net acres. Proved reserves at December 31, 1997, totaled 238 Bcfe.
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 Cabot Oil & Gas Corporation, visit the Company's website at http://www.cabotog.com.
The statement 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