|Cabot Oil & Gas Provides Drilling Update|
HOUSTON, April 28 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced its participation in 44 wells (33 development, 9 exploratory, and 2 extension wells) with a success rate of 86 percent for the first quarter of 2005. Approximately 24 percent of its $280MM capital and exploration expenditures has been spent or committed.
During the first quarter Cabot has completed several significant wells in its Gulf Coast region. Cabot and its partner successfully tested the Eugene Island 277 #A-2 ST at 9.6 Mmcf of gas per day and 1,419 barrels of oil per day from the Bul 1 sandstone. This well will commence production by early May. Cabot owns a 25 percent working interest in the well and facilities.
The Company recently completed a successful offset to the McIllhenny #3 at Avery Island field in Iberia Parish, Louisiana. The McIllhenny #4 found 65 feet of net pay and is currently producing at 1,750 barrels of oil plus 1.4 Mmcf of gas per day at 1,877 lbs. of flowing tubing pressure. Cabot controls a 75 percent working interest.
At the Lake Pelto field in south Louisiana, the Company has successfully completed the Lake Pelto Unit #4-19 (COG WI 25 percent), flowing to sales at 15 Mmcf of gas per day plus 176 barrels of oil per day at 8,672 lbs. of flowing tubing pressure from the upper Miocene "M" Sandstone. Additionally, Cabot successfully re-completed the SL16705 #2 in the "Big A" Sandstone, flowing 7 Mmcf of gas per day plus 40 barrels of oil per day at 3,733 lbs. of flowing tubing pressure. Cabot operates and has a 75 percent working interest in this well.
The Company continues to expand its Cotton Valley play in North Louisiana. At this point, the Company has successfully completed its first well in the Vernon field area, where the Davis Bros. #10A #1 was tested at 6.7 Mmcf of gas per day flowing at 1,875 lbs. of flowing tubing pressure. This well sets up two additional offsets, which are planned for later this year. Cabot owns a 23.5 percent working interest. The Eros prospect has seen its first successful well with the completion of the Weyerhaeuser 8A #1, (COG WI 43.75 percent) flowing at approximately 6.2 Mmcf of gas per day from the lower Cotton Valley sandstones. Cabot is currently drilling at the Weyerhaeuser 9 #1, an east offset to the discovery. This drilling could set up significant offset development locations in this eastern extension of the Vernon field complex.
The Company has completed drilling and testing operations at both the Womack #1 and the Knight #1 exploratory wells with disappointing results. Both wells found high pressure, gas saturated Cotton Valley section with tight sandstones. Multiple fracture stimulations were performed on the Womack with no commercial success. "It appears the section is too tight to produce at commercial rates," stated Dan O. Dinges, Chairman, President and CEO. "The Knight well found a similar section and that well was plugged without a completion attempt. While this is a disappointment, we still believe there is Hosston, upper Cotton Valley and lower Cotton Valley potential on our 20,000 acre exploration block." Dinges added, "We plan to continue evaluation of this acreage with a 3D seismic program and additional drilling.
"Our next test of the Cotton Valley will be at our Castor prospect located west of the Vernon complex where the Company holds over 7,500 acres. This well is planned to be spud in July of this year depending on rig availability. Cabot will maintain a 75 percent working interest in this impactful prospect," said 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 an expansion effort in Canada. 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
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation,
Web site: http://www.cabotog.com