HOUSTON, April 22 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation
(NYSE: COG) today announced the current status of its recent exploration and
development drilling activity in the Company's Gulf Coast region. This
activity includes one well in the Avery Island Field in Iberia Parish,
Louisiana, and four wells in Texas, including two in Redfish Bay and two in
the Aransas Pass area.
The McIlhenny #3 well, which was drilled on land acquired from Cody Energy
last year, was drilled to a total vertical depth of 16,970 feet and
encountered over 100 feet of oil pay in the Siph Davsi sand. The well tested
at a rate of 1,123 barrels of oil per day on a 13/64" choke with a flowing
tubing pressure of 2,050 psi. The well is expected to be placed on-line in
early May following the completion of facility modifications. Cabot is the
operator and, together with certain limited partnerships acquired from Cody,
owns a 75% working interest in the well. Palace Exploration owns a
25% working interest.
"The success of this well reinforces our confidence in the long-term
upside potential of the Cody acquisition," said Ray Seegmiller, Chairman and
Chief Executive Officer. "This well is the first development well we have
drilled on the Cody Louisiana properties which included a substantial number
of development drilling locations."
Cabot continues its active South Texas program. In the Redfish Bay
project, the Serrano prospect, State Tract 324 #1, is one of three previously
announced successful wildcat wells drilled in the area. The well encountered
34 feet of net pay and recently began producing 5.2 Mmcf of natural gas and
521 barrels of condensate per day from the Frio sandstone with a flowing
tubing pressure of 5,330 psi. The Harbor City prospect, State Tract 352 #1,
located in the same vicinity, was drilled to a total vertical depth of
10,240 feet and encountered 135 feet of pay in multiple Frio sands.
Completion activities are currently underway with anticipated first sales
occurring in mid June. Cabot is the operator of both wells and holds a 75%
and 56.25% working interest in the wells, respectively. Palace Exploration
holds a 25% working interest in State Tract 324 #1 and an 18.75% working
interest in State Tract 352 #1.
Cabot participated with Walter Oil & Gas as operator in two discoveries
producing from the Frio sands in the Aransas Pass area. The Grant #3A well is
producing 3.4 Mmcf of natural gas and 223 barrels of condensate per day with a
flowing tubing pressure of 4,704 psi. The Hildebrand #1 well is producing
3.5 Mmcf and 209 barrels of condensate per day with a flowing tubing pressure
of 5,950 psi. Cabot owns a 33.39% working interest in both wells.
"Wells drilled in this area of the Texas Gulf Coast over the past
six months are anticipated to add a total of 12 to 15 Mmcfe per day of
production net to Cabot by the end of the second quarter," commented
Seegmiller. "The continued drilling success we have experienced in this
region further reinforces our commitment to focus the majority of our
investment on the Gulf Coast."
Seegmiller added, "Furthermore, the success of the McIlhenny well on the
Cody properties illustrates the production and reserve potential from this
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.
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Web site: http: //www.cabotog.com
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CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, +1-281-589-4993