News Release

Cabot Oil & Gas Corporation Enters Exploration Agreement
 

HOUSTON, March 23 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today it has entered into a joint exploration program with Union Pacific Resources Group Inc. (NYSE: UPR) (UPR) to evaluate prospects and explore for oil and gas in Terrebonne Parish, Louisiana. UPR will be the designated operator in the area and own 67 percent of the project. Cabot will own the remaining 33 percent.

Cabot Oil & Gas Corporation and UPR have an exclusive lease option to explore and develop more than 100,000 acres which are located within a 306 square mile 3-D seismic survey that was completed in early March. Delivery of the seismic data is projected to take place in July 1998. The companies plan to dedicate three exploration teams to evaluate the 3-D seismic data with initial drilling activity to commence in late 1998 or early 1999.

Charles P. Siess, Jr., Chairman and Chief Executive Officer stated, "For three years we have been successfully building our exploration program and this project is a significant step in that process. The potential from this play, net to our interest, could triple our present Gulf Coast reserves. With the ongoing success of our drilling strategy and participation in deals like this, we have the opportunity to continue the positive momentum generated in 1997 to increase production and more than replace produced reserves."

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 filings.
SOURCE Cabot Oil & Gas Corporation
CONTACT: Scott Schroeder of Cabot Oil & Gas, 281-589-4993 CNOC: http: //www.prnewswire.com or fax, 800-758-5804, ext. 129660 WEBSITE: http: //www.cabotog.com