|Cabot Oil & Gas Announces Gulf Coast and Rocky Mountains Drilling Update|
HOUSTON, Feb. 18 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the results of its recent drilling activity in the Company's Gulf Coast and Rocky Mountains areas. This activity covers the Texas Gulf Coast, south Louisiana and Colorado.
The Harbor City ST 352 #2 exploitation well in the Redfish Bay area of south Texas was drilled to a total depth of 14,294 feet and encountered over 100 feet of net pay in the Frio formation. The well is currently completing. Cabot is the operator and owns a 52.25% working interest in the well.
On the Louisiana Gulf Coast the Hayworth prospect Ellender #1 exploration well reached a total depth of 12,127 feet targeting the Bourg Sand. The well encountered 47 feet of net pay sand and is expected to begin production in March. Cabot has a 37.5% working interest in the well and is the operator. The third well spudded in the fourth quarter of 2002 was the DS&B #113 (100% working interest) well in the Chacahoula Field in LaFourche Parish. The well is producing 5 Mmcf of natural gas per day with a flowing tubing pressure of 3,438 psi from 64 feet of net pay. Finally, Cabot's Northwest Gueydan prospect Henry #1 exploration well was a dry hole. The well encountered over 500 feet of the objective sandstone but it appears that the trapping fault did not seal in this area.
"In late October we announced we were expanding our Gulf Coast program on the continued strength of prices," said Dan O. Dinges, Chairman and Chief Executive Officer. "The resulting 75% drilling success rate on these prospects creates a tremendous jump-start to the year. Additionally, our Tasso prospect is still drilling."
In the Rocky Mountains, Cabot drilled four wells at the Double Eagle field in the Paradox Basin of southwest Colorado with a 100% success rate. When the Company acquired its interest, the field had one well which was shut-in due to no market outlets for the production. Cabot developed a marketing plan that included installing a liquids plant and new pipeline connections. The result was the Company's ability to undertake an aggressive drilling program.
The four wells completed are flowing from the Honaker Trail and Cutler formations at rates between 205 Mcf per day to 8.1 Mmcf per day between 6,500 and 9,700 feet. A maximum test rate on one well reached 20 Mmcf per day. From a total of seven wells, Cabot has grown the production in the field to 30 Mmcf per day gross. Cabot has a 37.5% working interest in the wells and is the operator.
"This activity solidified our expansion efforts into the Paradox Basin which were only possible due to the cooperative efforts from our geologic, engineering and land teams," stated Dinges. "In 2003 we plan on drilling four additional wells here."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Gulf Coast, including Texas and Louisiana; the West, with the Rocky Mountains and Mid-Continent; and the East. 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.
SOURCE Cabot Oil & Gas Corporation