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News Release

Cabot Oil & Gas Announces Drilling Update; Gulf Coast Drilling Successes Continue to Drive Production Growth
 

HOUSTON, March 12 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced another successful completion at Etouffee and a discovery at North Lake Pelto in the Company's Gulf Coast region. In addition, the Company experienced an exploration success in Appalachia and a dry exploration well in the Rocky Mountains area.

Gulf Coast

At the Etouffee prospect in the Kent Bayou field in Terrebonne Parish, Louisiana, the Continental Land & Fur #4 well began production in late February after reaching a measured depth of 19,600 feet. The well is producing 32.1 Mmcf of natural gas and 7,415 barrels of condensate per day with a flowing tubing pressure of 10,170 psi from 20 feet of perforations in the lower Etouffee Sand. Cabot has a 33.3% working interest in this well. RME Petroleum Company, a subsidiary of Anadarko Petroleum Corporation (NYSE: APC), holds the remaining interest and is the operator of the well.

"Due to the anticipated production levels from this well, a facility upgrade is currently in progress and will be completed by late second quarter," said Ray Seegmiller, Chairman and Chief Executive Officer. "Once the new facility is complete, we will realize the full incremental production."

The North Lake Pelto discovery well, located on State Lease 16705 also in Terrebonne Parish, reached a measured depth of 16,343 feet and should be turned in-line in early April. The well encountered 236 feet of net pay and recorded average porosity of 22% and a 65% hydrocarbon saturation. Cabot Oil & Gas has a 75% working interest (58.7% net revenue interest) and is the operator of this well. The well is currently waiting on completion. The remaining working interest in held by Palace Exploration Company.

"Traditionally, we don't announce well results before a test," said Seegmiller. "However, due to several questions from the investment community, we decided to highlight this discovery. Preliminary results show that the well encountered pay in 14 sands. We elected to move the rig to another location while a pipeline for this discovery was laid. When that well is completed the rig will return to complete the North Lake Pelto well and drill an offset to this discovery."

Appalachia

The C. J. Coal #1 exploration well, located in Somerset County, Pennsylvania, was drilled to a total depth of approximately 9,100 feet and encountered 14 feet of pay in the Chert and Oriskany formations. With completion operations currently underway, the well had a natural flow of 250 Mcf per day and is expected to be turned in-line by mid March at a rate after frac over 1.0 Mmcf per day. Cabot has a 100% working interest (87.5% net revenue interest) and is the operator of the well.

Rocky Mountains

The Bear Creek prospect, a wildcat well in Carbon County, Wyoming, targeting the Grey Bull sandstone was dry. Consequently, Cabot's geoscientists are evaluating the well data to determine the merits of continuing any further drilling in the area.

"Our company-wide exploration focus has added a new dimension to Cabot Oil & Gas that continues to enhance production, as evidenced by the success of these Gulf Coast and Appalachian wells," said Seegmiller. "We currently have 36 exploration wells in our budget to be drilled this year."

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 (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
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