|Cabot Oil & Gas Announces Rocky Mountains and Gulf Coast Drilling Successes|
HOUSTON, Oct. 29 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced results of its recent drilling activity in the Rocky Mountains and Gulf Coast. The highlighted activity includes seven wells located in four states including Wyoming, Colorado, south Texas and south Louisiana.
The Wind Dancer #10-28 exploration well located on the Nickey prospect in Sweetwater County, Wyoming, was drilled to a total depth of 11,700 feet and encountered pay sands in the Lewis, Almond and Lance formations. The well is producing into pipeline at a rate of 4.5 Mmcf per day from the Lewis and Almond formations. Two offset wells have been staked and will be drilled before the end of the year. Cabot has a 47 to 50 percent working interest in the majority of this 11,000-acre prospect.
Cabot's Fossil Federal #4-19 development well in the Double Eagle field in the Paradox Basin of southwestern Colorado was recently drilled to a total depth of 9,950 feet and is producing at a rate of 6.8 Mmcfe per day from the Honaker Trail formation. The Company has a 37 percent working interest in the well. Also in the same field, Cabot has a 62 percent working interest in the Fossil Federal #1-20 Cutler formation development well. The Company is now completing the well after reaching a total depth of 7,816 feet. In addition, completion activities on the 10,200 foot Fossil Federal #8 and drilling operations for the 10,500 foot Fossil Federal #5-19 wells are currently underway. Cabot has a 37 percent working interest in these two wells.
Also in the Paradox Basin, Cabot recently drilled and plugged the Sabretooth #1-2 wildcat after reaching a total depth of 6,879 feet in the Cutler formation. Several shows were encountered, but after evaluating open hole logs the sands were determined to be non-commercial and the Company elected not to complete the well.
"We remain excited about the development potential the Nickey prospect provides and the continued expansion of our production coming from the Paradox Basin," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "Our exploration program in the basin is continuing with the 10,500 foot Hard Left wildcat that is drilling at 6,900 feet. We have a 62 percent working interest in this Honaker Trail test and 75 percent working interest in the balance of the prospect, which is five miles to the northwest and on trend with our Double Eagle development activity."
Cabot successfully drilled the State Tract 277 #2 well located in San Patricio County, Texas, to a total depth of 11,665 feet. This well is part of Cabot's Redfish Bay Frio play. The well encountered 49 feet of Frio pay in two sands. The main pay interval is expected to be completed and turned in to sales in mid December at an anticipated rate of 15 Mmcfe per day. Current activity includes moving a rig in to drill an offset location. The Company has a 75 percent working interest in this project; Palace Exploration holds the remaining 25 percent.
Cabot recently drilled the DS&B #120 well located in Chacahoula field, LaFourche Parish, Louisiana. The #120 well, which offsets the DS&B #119 well completed earlier this year, was drilled to a total depth of 7,175 feet and logged 164 feet of oil pay in the Bigenerina 2 Sand interval and tested over 600 barrels of oil plus 500 Mcf per day. Cabot has a 50 percent working interest in the prospect. Other working interest partners are Palace Exploration Company, Yuma Exploration and Liberty Energy.
The Abshire #2 well (53 percent working interest) on the Boudreaux prospect in Vermilion Parish, Louisiana, reached a total depth of 17,200 feet after penetrating the Marg Tex 3 sands. No commercial hydrocarbons were encountered and Cabot opted to forego any further activity. Palace Exploration (47 percent working interest partner) subsequently assumed operating responsibilities for the well.
"The cumulative impact of this year's drilling successes helped the Gulf Coast increase production from the second quarter to the third quarter," added Dinges. "With our drilling exposure to reserves for the remainder of this year, we are positioned for additional production and reserve growth potential in early 2004."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent natural gas producer 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