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News Release

Cabot Oil & Gas Announces Gulf Coast Drilling Update
 

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 Corporation.

"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 filings.
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