|New Gulf Coast Well Boosts Production for Cabot Oil & Gas|
HOUSTON, June 5 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the successful completion of the Company's first operated, exploration well on the Continental Land & Fur (CL&F) acreage in Terrebonne Parish, Louisiana. The CL&F #58-2 well, located on the Company's Augen prospect, was drilled to a total depth of 13,100 feet and completed in 63 net feet of Bourg Sand. The well tested at a rate of 15.4 Mmcf per day, 108 barrels of oil per day and no water with a flowing tubing pressure of 9,300 psi on a 21/64" choke. The initial shut-in pressure is 9,600 psi. The well should be turned in-line by late July. Cabot Oil & Gas has a 50% working interest and a 35% net revenue interest in the well, with Palace Exploration Company owning the balance of the working interest.
"This significant discovery adds credibility to our south Louisiana exploration effort," stated Ray Seegmiller, Chairman and Chief Executive Officer. "With the success of this well, combined with the anticipated late June production facilities completion at the Etouffee field (the field presently consists of two completed wells and one well currently drilling), production during the second half of 2000 will increase considerably compared to the first half of this year." Seegmiller added, "We knew when we started 2000 our drilling program in the Gulf Coast had significant potential as evidenced by this most recent discovery. Currently we have six wells drilling with 13 more expected to spud by year-end in our Gulf Coast region."
In response to strong gas prices and the successful drilling effort so far this year, Cabot's Board of Directors authorized an additional $16 million in capital expenditures for the 2000 budget year. If utilized, this brings the full year capital program to $110 million and allows for further debt repayment based on current anticipated levels for discretionary cash flow.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the onshore Texas and Louisiana Gulf Coast, Rocky Mountains, Appalachia, and in the Mid-Continent. 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 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