|Cabot Oil & Gas Corporation Reports 294% Reserve Replacement|
HOUSTON, Feb. 18 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today that for the year-end December 31, 1997, the Company replaced 294% of its production through its ongoing drilling and acquisition efforts. From the drill bit alone, Cabot Oil & Gas Corporation successfully replaced 168% of production, adding 114.0 Bcfe, while acquisitions replaced 114%, or 77.4 Bcfe. Positive revisions of 7.3 Bcfe constitute the balance of additions.
Charles P. Siess, Jr., Chairman and Chief Executive Officer stated, "These results continue to verify our ongoing strategy to grow through the drill bit while pursuing synergistic acquisitions. In a time when companies in our industry are struggling to replace reserves, we accomplished this task in a cost efficient manner. Finding costs from drilling, including revisions, totaled $.67 per Mcfe while finding costs from all sources was $.64 per Mcfe." Siess added, "This brings our three-year average finding costs to a very competitive level near $.60 per Mcfe."
After taking into account the 139 Bcfe of reserves that were sold and the 67.7 Bcfe of production during 1997, year-end reserves were 939 Bcfe, less than 1% below the comparable number at December 31, 1996. "We are pleased that we were able to maintain our level of reserves and, at the same time, improve on the overall quality of our asset base," commented Siess. Also, at year-end, discounted future net cash flows (pre-tax PV-10) attributable to proved oil and natural gas reserves totaled $839 million. This is down from last year due to a $1.11 per Mcf reduction in year-end gas prices between periods.
Supplemental Oil and Gas Information 1997 Proved Reserve Reconciliation Natural Gas Liquids Total Mmcf MBbls Mmcfe Proved Reserves Beginning of Year 915,617 5,166 946,613 Revisions 6,744 99 7,338 Additions 109,191 794 113,955 Production (63,889) (629) (67,663) Purchases 73,836 594 77,400 Sales (138,070) (155) (139,000) End of Year 903,429 5,869 938,643 Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities - 1997(A) ($000) Property Acquisition Costs - Proved $ 45,573 Property Acquisition Costs - Unproved 4,302 Exploration and Extension Well Costs 28,633 Development Costs 53,441 $ 131,949 (A) These costs include exploration administrative expense of $4.9 million which the Company does not consider in its finding cost calculation.
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