|Cabot Oil & Gas Monetizes Pennsylvania Reserves; Deal Provides Acquisition Funding and Future Opportunities|
HOUSTON, Sept. 8 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today that it has reached a definitive agreement to sell proved reserves and acreage located primarily in Northwest Pennsylvania for $92.5 million to Lomak Petroleum Incorporated (NYSE: LOM). Charles P. Siess, Jr., Chairman and Chief Executive Officer stated, "Since 1979, we have been building our Northwest Pennsylvania operations, and I am pleased to see that our efforts have been rewarded. Over the past two years, we have limited our investment in this area due to our higher return exploration programs in other parts of Appalachia, the Gulf Coast, the Mid-Continent, and the Rocky Mountains, as well as a large inventory of high grade development locations. Because we believe there exists high potential deep mineral prospects in the area being sold, we are retaining an interest in these deep mineral rights."
The sale includes 912 wells producing 15 Mmcfe net per day primarily from the Medina formation. A portion of the proceeds from the transaction, scheduled to close in early October 1997, will be used to fund the Company's $44 million acquisition in the Rocky Mountains where the Company is acquiring interest in 65 wells and initially 10 Mmcfe of net production per day.
As a part of the continuing optimization of the Company's assets and operations, Cabot Oil & Gas Corporation is also in the process of consolidating its Oklahoma City operations into its existing offices in Denver and Houston. Siess stated, "This move will allow more flexibility in the use of our technical resources as we exploit our growth prospects in the Anadarko basin and Rocky Mountains." The consolidation will be completed by year-end.
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 the Company, visit COG's internet home page at http:// 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