|Cabot Oil & Gas Announces Drilling and Acquisition Update|
Gulf Coast Drilling Successes Continue to Drive Production Growth; Rocky Mountains Acquisition Extends Area Leasehold
HOUSTON, April 19 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced two exploration successes and the acquisition of 23,000 net acres of oil and gas leases in the Rocky Mountains. Both discoveries were in the Lake Pelto field in south Louisiana, while the property acquisition consists of the Owl Creek Mountain Front trend located in the Wind River Basin of Wyoming.
Gulf Coast Wells
The Lake Pelto State Lease 2620 #37 exploration well, located in Terrebonne Parish, Louisiana, was drilled to a total depth of 16,020 feet and encountered pay in the Miocene "N" sand. The well tested at a rate of 3,300 Mcf of natural gas and 206 barrels of condensate per day with a flowing tubing pressure of 4,100 psi on a 14/64" choke. The well is currently waiting on pipeline hook up and is expected to be on-line by early May. Cabot has a 75% working interest and 59% net revenue interest in the well.
The previously announced North Lake Pelto discovery well, located on State Lease 16705 also in Terrebonne Parish, tested at a rate of 2,629 Mcf of natural gas and 53 barrels of condensate per day with a flowing tubing pressure of 2,500 psi on a 14/64" choke. The well tested the Miocene "L" sand. The "L" sand is the deepest of 14 individual pay sands found in the well. The well is currently waiting on pipeline hook up and should be flowing to sales by early May. Cabot Oil & Gas has a 75% working interest (59% net revenue interest) and is the operator of this well. The remaining working interest is held by Palace Exploration Company. An offset well was spudded in mid April.
"The results from our south Louisiana drilling program were the main driver of our success in 2000 and continue to enhance production in 2001," said Ray Seegmiller, Chairman and Chief Executive Officer. "These two wells are the first of many planned exploration wells on the acquired Oryx properties."
Rocky Mountains Acquisition
The Rocky Mountains lease acquisition in the Wyoming Wind River Basin includes the Cedar Ridge area that is located between the Cave Gulch/Waltman and giant Madden fields and is bordered by the Boone Dome area to the southeast. Included in the purchase is a license to a proprietary 98 square mile 3-D survey at Cedar Ridge that will complement Cabot's recently acquired 122 square mile 3-D survey over Boone Dome. Since entering this play last year, the Company has established a leasehold position totaling approximately 52,000 net acres. Joint owners with Cabot Oil & Gas in this trend are Barrett Resources Corporation and El Paso Production Company.
"We are currently interpreting this 3-D seismic and expect to drill several wildcats on the leasehold in the near future," said Seegmiller. "These wells will target prospective gas-producing formations in this trend which include the Muddy, Frontier, Lance, Fort Union and other targets."
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.