|Cabot Oil & Gas Provides Operational Update|
HOUSTON, Feb 21, 2005 /PRNewswire-FirstCall via COMTEX/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the successful completion of several significant wells in its operating regions, as well as the culmination of the most aggressive development drilling program in the East region's history.
In the Gulf Coast region, Cabot and its partner successfully commenced production at Eugene Island 280-1, which tested at 13.8 Mmcf per day and 1,267 Bbl of oil per day from Pliocene sandstones. This well was originally expected to commence production in the early fall of 2004. However, the gas/oil ratio of the well stream necessitated additional facilities to be fabricated, delaying production to February, 2005. Cabot owns a 25 percent working interest.
The Company recently drilled a successful offset to the McIlhenny #3 at Avery Island field in Iberia Parish, Louisiana. The McIlhenney #4 encountered about 65' of net pay and is currently completing. First production from this oil well is expected late the first quarter.
In Cabot's north Louisiana Cotton Valley play, the Company just reached total depth of 16,600' at the initial well (the Womack #1) in Jackson Parish, Louisiana on the Clear Branch prospect. The current plan is to design the fracture technique for the logged high pressure, gas bearing formations. Additionally, with the significant size of the Clear Branch structure, Cabot has spud its second well in the prospect approximately three miles southwest of the Womack #1. Cabot also anticipates a near term spud at the Eros prospect just to the north of the Clear Branch area.
The West region has seen several important wells drilled in the later part of 2004. The Gold Nugget prospect reached TD in October, 2004. We logged pay in multiple Lance and Fort Union sandstones and ran production casing. However, the Company was forced to suspend operations due to federal wildlife regulations. Completion operations will resume this spring.
In the Bighorn basin, Cabot continues to evaluate the Corral Creek prospect (WI 75%). The Company drilled two extension wells to evaluate limits of the Frontier gas discovery. One well was successful extending the limits and the other found tight Frontier sand. Cabot is completing the Corral Creek #30-21 and expects to see a modest flow rate. The initial discovery well continues to produce as expected. The Company is planning to drill several follow-up wells during 2005.
Activity in the Paradox continues to show excellent drilling results. In addition to another successful development program in the Double Eagle field, the Company also drilled two successful wildcats. The Single Eagle wildcat (WI 62%), was drilled several miles northwest of the field. This well found multiple pay sands in the Honaker Trail and was completed flowing 2.4 Mmcf per day. This is a critical well in that it not only sets up multiple development locations, but also could lead to the extension of Double Eagle northwest into this area.
A second wildcat in the Paradox basin, drilled in partnership with Encana, was successful in the discovery of a Honaker Trail pool at the Big Indian prospect (WI 26%). This well is located about 25 miles west of Double Eagle. The well completed flowing 2.1 Mmcf per day. Importantly, the Company believes there is considerable upside in this field and is working diligently to expand the drilling program.
The East region completed its most aggressive development program ever. The drilling of 171 wells resulted in a 5% production growth with a 400% reserve replacement. Cabot added over 3,360 HP of new compression and over 74 miles of pipeline to its system. This investment allowed Cabot to grow its production and will open new areas for future drilling. "We have commenced our 200 well program for 2005," said Dan O. Dinges, Chairman, President and CEO.
Cabot had a successful first full year of operations in Canada. The Company participated in six wells, five of these were successful and two are on production. The first discovery was at Musreau where production is 9 Mmcf per day from two wells. Cabot's working interest ranges from 24-40 percent. Additional drilling is currently underway in this area.
"In 2004 we were successful in 15 out of 20 wildcats, many of which set up offset drilling for 2005. In addition to these wildcat successes in the Gulf Coast region, Big Horn and Paradox basins in the West and in our Canada operating area, we had great success in expanding our commodity play in the East. When you look at our 2005 program and layer in the excitement on our north Louisiana prospects, Cabot is positioned for a very successful year in 2005," stated Dinges.
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; the East and a new position in Canada. For additional information, visit the Company's Internet homepage at www.cabotog.com.
SOURCE Cabot Oil & Gas Corporation
Scott Schroeder of Cabot Oil & Gas Corporation, +1-281-589-4993