HOUSTON, Sept. 6 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG)
today provided an update on its south Louisiana drilling activity. Cabot
recently turned in-line two of its operated discoveries, Augen and Bon Ton, in
which the Company has a 50% working interest. As of the date of this release,
these wells are producing in total more than 38 Mmcfe per day, or 13.3 Mmcfe
per day net to Cabot. Each well is producing over 17 Mmcf of gas per day
gross. In addition, the Augen well is producing 247 Bbls of oil per day gross
with a flowing tubing pressure of 8,600 psi and the Bon Ton well is producing
345 Bbls of oil per day gross with a flowing tubing pressure of 6,150 psi.
"The production from these two wells was increased gradually over the last
three weeks as we have monitored their wellhead pressure and performance,"
stated Ray R. Seegmiller, Chairman and Chief Executive Officer.
At the Etouffee prospect in the Kent Bayou Field, expansion of the
existing production facilities is being completed, and an oil pipeline is
being laid to transport the significant production from this field. Cabot
holds a 33.3% working interest in the Etouffee prospect. The operator is
Union Pacific Resources, which recently merged with Anadarko Petroleum
"These enhancements will allow the facility to reach optimum production
rates on the first two wells in the fourth quarter, when the Continental Land
& Fur (CL&F) #3 well should also be on-line," added Seegmiller.
Completion operations are currently underway on the CL&F #3 well. Based
on open hole logs, this is the best well drilled to date on the Etouffee
prospect. The well is updip approximately 250 feet from the discovery well
and has 535 feet of gross interval, with 260 feet of net pay. This #3 well
has average porosity of 27%, with maximum porosity of 33%.
A fourth well on the Etouffee prospect in the Kent Bayou Field will spud
soon. "As a result of ongoing discussions with Anadarko, we are confident the
production facility and pipeline modifications can maximize production from
the first three wells beginning in November," Seegmiller added.
To quantify the impact of these events, Cabot is now expected to produce
between 66 and 67 Bcfe during 2000, which approximates the production in 1999
after adjusting for the assets sold last year.
"This expected production level results in production growth of 3% between
the second and third quarters of 2000 and another 6% between the third and
fourth quarter," commented Seegmiller. "During the first half of the year
production averaged 178 Mmcfe and today we are producing approximately 190
Mmcfe per day."
"The current year's drilling program has provided significant reserves and
future production potential as highlighted by our anticipated reserve
replacement ratio in excess of 140% for 2000," said Seegmiller. "A peak
production rate of 200 Mmcfe per day should occur as we exit 2000, setting the
stage for a great start to 2001."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading
domestic independent natural gas producer and marketer with substantial
interests in the onshore Texas and Louisiana Gulf Coast, Rocky Mountains,
Appalachia and Mid-Continent. 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 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
SOURCE Cabot Oil & Gas Corporation
Web site: http: //www.cabotog.com
Company News On-Call: http: //www.prnewswire.com/comp/129660.html or fax, 800-758-5804, ext. 129660
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, 281-589-4993