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News Release

Cabot Oil & Gas Announces Year-End Reserves; Organically Replaces Production
 

HOUSTON, Feb. 17 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the Company's total proved reserves at December 31, 2003 were 1,142.1 Bcfe, down slightly from the prior year-end due to 53.4 Bcfe of reserve sales during the year. For the year, the Company replaced 127 percent of its production, 125 percent of which was through the drill bit. This was accomplished at a finding cost of $1.46 per Mcfe that includes the start-up costs associated with the Company's offshore and Canadian expansion efforts. For the five years ended 2003, Cabot's production replacement percentage is 163 percent, at an average finding and development cost of $1.38 per Mcfe.

"As has been highlighted many times, opportunities for replacing reserves are getting increasingly more difficult to find, but again Cabot was able to successfully accomplish this and at a reasonable cost to find," said Dan O. Dinges Chairman, President and CEO. "Our success in 2003 was driven by the results coming from the East where the Company added 72.0 Bcfe at a cost of only $0.39 per Mcfe."

Miller and Lents, a well respected oil and gas reserve engineering firm, has audited 100 percent of the Company's reserves each year for the last 14 years.
Listed below are reserve related disclosures that will be part of the 2003

Form 10-K
Supplemental Oil & Gas Information for the Year Ended December 31, 2003

                                  2003 Proved Reserve Reconciliation
     Proved Reserves           Natural Gas        Liquids        Total
                                 (Mmcf)           (MBbls)       (Mmcfe)

       Beginning of Year        1,060,959          18,393      1,171,316
       Revision                    (6,122)            307         (4,278)
       Additions                  105,497           1,723        115,835
       Production                 (71,906)         (2,846)       (88,976)
       Purchases                    1,590             ---          1,591
       Sales                      (20,534)         (5,474)       (53,380)

     End of Year                1,069,484          12,103      1,142,108
     Developed (% of reserves)       76.0%           77.7%          76.1%

           Estimated Proved Reserves by Region at December 31, 2003

                         Natural Gas (Mmcf)            Liquids (A) (MBbls)
                Developed   Undeveloped   Total  Developed  Undeveloped  Total
    Gulf Coast   121,476       50,163    171,639   6,603       2,216     8,819
    West         335,858       72,534    408,392   2,412         482     2,894
    East         354,946      134,507    489,453     390         ---       390
        Total    812,280      257,204  1,069,484   9,405       2,698    12,103

                                               Total (B) (Mmcfe)
    Gulf Coast                          161,095    63,459    224,554
    West                                350,331    75,430    425,761
    East                                357,286   134,507    491,793
        Total                           868,712   273,396  1,142,108

     (A) Liquids include crude oil, condensate and natural gas liquids.
     (B) Natural gas equivalents are determined using the ratio of 6 Mcf
         of natural gas to 1 Bbl of crude oil, condensate or natural gas
         liquids.

             Costs Incurred in Oil and Gas Property Acquisition,
          Exploration and Development Activities - 2003 (C)  ($000)

     Property Acquisition Costs - Proved             1,524
     Property Acquisition Costs - Unproved          14,056
     Exploration and Extension Well Costs           83,147
     Development Costs                              77,006
        Total Costs                                175,733

     (C) Includes administrative exploration costs of $10,582, which are
         excluded from the Company's calculation of reserve replacement costs.


"The year provided several highlights including exploration success in the Rocky Mountains and the significant expansion of our commodity play from our East operations," said Dinges. "Add to this, development drilling success in the Gulf Coast along with the expansion offshore where we were four out of seven with net production of 22 to 25 Mmcf per day expected in 2004, Cabot posted a solid year," Dinges added, "We have numerous exploration opportunities in our drilling inventory. The 2004 program exposes Cabot to a net unrisked reserve potential of 400 to 500 Bcfe."

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent natural gas producer with substantial interests in the Gulf Coast, including Texas and Louisiana; the West, with the Rocky Mountains and Mid- Continent; the East and an expansion effort in Canada. 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