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News Release

Cabot Oil & Gas Corporation Reports 294% Reserve Replacement
 

HOUSTON, Feb. 18 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today that for the year-end December 31, 1997, the Company replaced 294% of its production through its ongoing drilling and acquisition efforts. From the drill bit alone, Cabot Oil & Gas Corporation successfully replaced 168% of production, adding 114.0 Bcfe, while acquisitions replaced 114%, or 77.4 Bcfe. Positive revisions of 7.3 Bcfe constitute the balance of additions.

Charles P. Siess, Jr., Chairman and Chief Executive Officer stated, "These results continue to verify our ongoing strategy to grow through the drill bit while pursuing synergistic acquisitions. In a time when companies in our industry are struggling to replace reserves, we accomplished this task in a cost efficient manner. Finding costs from drilling, including revisions, totaled $.67 per Mcfe while finding costs from all sources was $.64 per Mcfe." Siess added, "This brings our three-year average finding costs to a very competitive level near $.60 per Mcfe."

After taking into account the 139 Bcfe of reserves that were sold and the 67.7 Bcfe of production during 1997, year-end reserves were 939 Bcfe, less than 1% below the comparable number at December 31, 1996. "We are pleased that we were able to maintain our level of reserves and, at the same time, improve on the overall quality of our asset base," commented Siess. Also, at year-end, discounted future net cash flows (pre-tax PV-10) attributable to proved oil and natural gas reserves totaled $839 million. This is down from last year due to a $1.11 per Mcf reduction in year-end gas prices between periods.

                     Supplemental Oil and Gas Information

                                 1997 Proved Reserve Reconciliation
                                 Natural Gas     Liquids      Total
                                    Mmcf          MBbls       Mmcfe
    Proved Reserves
      Beginning of Year           915,617         5,166      946,613
      Revisions                     6,744            99        7,338
      Additions                   109,191           794      113,955
      Production                  (63,889)         (629)     (67,663)
      Purchases                    73,836           594       77,400
      Sales                      (138,070)         (155)    (139,000)
     End of Year                  903,429         5,869      938,643

    Costs Incurred in Oil and Gas Property Acquisition, Exploration and
    Development Activities - 1997(A)  ($000)

    Property Acquisition Costs - Proved       $ 45,573
    Property Acquisition Costs - Unproved        4,302
    Exploration and Extension Well Costs        28,633
    Development Costs                           53,441
                                             $ 131,949
    (A) These costs include exploration administrative expense of $4.9 million
        which the Company does not consider in its finding cost calculation.

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Appalachia, Anadarko, Rocky Mountain and Gulf Coast regions. For additional information about the Company, visit COG's internet home page at http:// 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
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, 281-589-4993
WEBSITE: http: //www.cabotog.com