|Cabot Oil & Gas Finalizes Year-End Reserves|
HOUSTON, Feb. 12 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the final results of its year-end reserve audit. Total proved reserves increased to 1,018.7 Bcfe at December 31, 2000, compared to 978.7 Bcfe in the prior year. For the year, Cabot replaced 165% of production and reported finding and development costs of $.98 per Mcfe. In total, 104.4 Bcfe was added through the drill bit (adjusted for revisions) and 5.8 Bcfe through acquisitions. Also, at year end, discounted future net cash flows (pre-tax PV10) attributable to proved oil and gas reserves grew from $737.8 million in 1999 to $3.5 billion in 2000 based on a Henry Hub price movement from $2.14 per Mcf in 1999 to an unprecedented $9.52 per Mcf for 2000.
"The significant success of our Gulf Coast drilling program was the primary contributor that drove reserves back over the 1 Tcfe level for the third time in our history," said Ray Seegmiller, Chairman and Chief Executive Officer. "While the year-end natural gas price had a definite impact on the present value of proved reserves, Cabot's reserve base did not change appreciably due to the higher prices."
Seegmiller added, "If our reserves had been valued at a $4.00 price, (which is close to the Henry Hub average for 2000) using the same year-end price differentials, total proved reserves would still be above the 1 Tcfe mark at 1,005.4 Bcfe with a resulting pre-tax PV10 of $1.3 billion."
Listed below are reserve-related disclosures that will be part of the 2000 Form 10-K.
Supplemental Oil & Gas Information Year Ended December 31, 2000 2000 Proved Reserve Reconciliation Natural Gas Liquids Total Mmcf MBbls Mmcfe Proved Reserves Beginning of Year 929,602 8,189 978,741 Revisions (14,796) 562 (11,423) Additions 103,600 2,032 115,792 Production (60,934) (988) (66,872) Purchases 5,118 120 5,838 Sales (3,368) (1) (3,373) End of Year 959,222 9,914 1,018,703 Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities - 2000* ($000) Property Acquisition Costs - Proved $5,954 Property Acquisition Costs - Unproved 10,869 Exploration and Extension Well Costs 40,008 Development Costs 59,879 Total Costs $116,710 * Note: These costs include exploration administrative expense of $8.4 million that the Company does not consider in its finding cost calculation. Estimated Proved Reserves by Area at December 31, 2000 Natural Gas (Mmcf) Liquids(A) (MBbl) Developed Undeveloped Total Developed Undeveloped Total Gulf Coast 77,721 28,074 105,795 5,525 837 6,362 Rocky Mountains 182,790 50,446 233,236 1,550 587 2,137 Mid-Continent 182,927 28,911 211,838 990 52 1,042 Appalachia 311,524 96,829 408,353 373 0 373 Total 754,962 204,260 959,222 8,438 1,476 9,914 Total(B) (Mmcfe) Developed Undeveloped Total Gulf Coast 110,871 33,093 143,964 Rocky Mountains 192,090 53,969 246,059 Mid-Continent 188,867 29,222 218,089 Appalachia 313,762 96,829 410,591 Total 805,590 213,113 1,018,703 (A) Liquids include crude oil, condensate and natural gas liquids (Ngl). (B) Natural gas equivalents are determined using the ratio of 6 Mcf of natural gas to 1 Bbl of crude oil, condensate or natural gas liquids.
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 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 (including regional basis
differentials) 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 filings.