|Cabot Oil & Gas Reports Gas Finds at Hostetter (Additional Production at Beaurline)|
HOUSTON, Jan. 26 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced its largest find, to date, from its Hostetter 3-D Program in McMullen County, TX. The Stella Penn #7 is initially producing from the Corona sand in the Wilcox Formation at 14 Mmcf of gas and 300 Bbls of condensate per day with 1200 psi flowing tubing pressure. The well has 50 feet of pay at a depth of 11,200 feet. Cabot Oil & Gas Corporation has a 100% working interest in the well.
Also in the Hostetter field, the Stella Penn #8, which was highlighted in a press release in October, is naturally producing 4 Mmcf of gas and 75 Bbls of condensate per day at 2100 psi flowing tubing pressure from the Wilcox Slick sand. Cabot Oil & Gas is the operator of this well and has a 71% working interest.
In Hostetter, there are two additional wells being completed and two have reached total depth. To date, five wells appear productive out of six wells drilled.
Additionally, statistics on other recent successes are shown as follows: Beaurline Field -- Beaurline #15 - The Beaurline #15 is the fifth recent success in this field for Cabot Oil & Gas. This well is producing 4.0 Mmcf of gas plus 70 Bbls of condensate per day at 4000 psi flowing tubing pressure from the Vicksburg sand. There is over 100 feet of additional pay existing in upper zones behind pipe. Cabot Oil & Gas has a 100% working interest in the well. -- Beaurline #11 - The Beaurline #11, on production since November, 1996, was recently fracture stimulated and is currently producing 8.0 Mmcf of gas and 25 Bbls of condensate per day at 6000 psi flowing tubing pressure. Initial gas production in 1996 was 4.5 Mmcf per day natural flow. Cabot Oil & Gas has a 100% working interest in the well. Anadarko -- Simmons 4-21 - This well, which is part of Cabot Oil & Gas Corporation's new exploitation efforts in the Mid-Continent, tested at 2.8 Mmcf per day and was completed in the Red Fork formation. Cabot Oil & Gas has a 50% working interest in this offset well to the Simmons 3- 21, which was disclosed in an October press release. At least, one additional offset is planned.
Charles P. Siess, Jr. commented, "These drilling efforts add validity to our primary strategy of growth through the drillbit. Last year we stated our belief in the upside at Hostetter, and today, we are beginning to receive the benefits of our efforts in this area. Additionally, we continue to develop new opportunities in the Beaurline field. In 1998 our plans are to drill 18 more wells in or near these two fields."
Siess added, "Because of these successes, along with others in Appalachia, Anadarko and the Rocky Mountains in 1997, Cabot Oil & Gas Corporation plans to drill 270 gross wells and spend $111 million on its 1998 capital and exploration budget, a 17% increase over 1997, excluding 1997's acquisition activity."
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