|Cabot Oil & Gas Completes Rocky Mountain Purchase; Increases Undeveloped Acreage Position in Wyoming|
HOUSTON, Jan. 10 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the acquisition of 5.7 Bcfe of proved reserves, 2.2 Bcfe of probable reserves and, more importantly, 43,000 undeveloped acres contiguous to the Company's existing properties on the Moxa Arch of the Green River Basin in southwest Wyoming. With this acquisition, Cabot's undeveloped acreage position in the Rocky Mountains is now in excess of 100,000 net acres. The assets include 9 active wells producing 1.4 Mmcfe per day. The effective date for the transaction is November 1, 1999.
The properties, located in Lincoln, Sweetwater and Uinta counties in Wyoming, were purchased in a negotiated deal from Petral Explorations LLC. The economics of the transaction include $5 million for the proved and probable reserves and $3.5 million for the acreage. This acquisition was funded by proceeds from the tax-deferred exchange where the Company sold certain Appalachian assets in 1999 and purchased, in two transactions, Rocky Mountain reserves and acreage.
"This transaction significantly improves our undeveloped acreage position in the Rocky Mountains and will provide future exploration and development drilling opportunities," said Ray R. Seegmiller, Chairman and CEO. "The acquisition also reinforces our commitment to growth in the Rocky Mountains."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Appalachian, Mid-Continent, Rocky Mountain and Gulf Coast basins. For additional information, visit the Company's internet home page 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 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