HOUSTON, July 28, 2005 /PRNewswire-FirstCall via COMTEX/ -- Cabot Oil & Gas Corporation
(NYSE: COG) today announced drilling success in north Louisiana, offshore GOM,
south and west Texas, expansion of its leasehold in key areas of its Gulf
Coast operation and other operational accomplishments.
During the second quarter, Cabot drilled and completed the Weyerhaeuser
9-1 well (Cabot 85% WI) at its Eros prospect in north Louisiana. After four
fracture stimulations, the well was turned in line this week producing
5.8 Mmcfd of gas at a flowing casing pressure of 2,075 psi. The Weyerhaeuser
15-1 well (Cabot 87.5% WI), a further step out to the east, has also completed
drilling and initial log indications are similar to the 9-1 well. The Company
is securing services for completion. "If the 15-1 completes as well as the
log indicates, we will have as many as 15 offsetting locations in the field,
with additional potential on adjoining acreage currently being evaluated with
3D," stated Dan O. Dinges, Chairman, President and Chief Executive Officer.
The Company has successfully completed the East Cameron 111 #1 wildcat
well, which tested at 11.38 Mmcf and 364 barrels of oil per day at flowing
tubing pressure 7,230 psi from a Tex L sandstone. Cabot has a 50% working
interest and operates the well. Production is expected to commence during the
In other drilling related news, Cabot has drilled and is completing its
first well in its Conger field in west central Texas. The successful
completion of this well sets up over 40 operated locations. We are currently
drilling the second well in this program. At Cabot's Bego field in south
Texas, the Company successfully drilled the Bego Gas Unit #3 to 13,000' with
discovered pay in the Wilcox formation. Fracture stimulation is planned for
the well in the near term. The well sets up multiple development offsets.
"With both of these opportunities, success will translate into room for
development over a longer period of time," said Dinges. "This would also
serve as a way to extend the reserves life in the Gulf Coast, enhance our
growth opportunities and mitigate some of the volatility in our production
The Eastern region program has drilled 86 of its 200 well program with
100% success. One hundred nineteen (119) wells of the program will test the
Ohio shale. "To date, we have successfully drilled and completed 39 shale
wells with four rigs currently drilling," said Dinges. "As a frame of
reference, 27 percent of our wells in the east produce from the shale."
The Company is also pleased to announce that it has successfully acquired
two properties complimentary to its existing leasehold; one in south Texas and
one in east Texas. In south Texas, Cabot acquired additional working interest
and becomes the operator in a field where it previously held 33 percent
In another deal, Cabot has signed Agreements wherein the Company has
acquired drilling rights from a major oil company covering about 3,000 net
acres in Rusk County, Texas. Drilling is expected to commence during the third
quarter for this Cotton Valley objective. "Both of these deals expand Cabot's
resource opportunity base and will provide additional lower risk drilling
opportunities," added Dinges.
Cabot, along with two partners, has agreed to terms for a 3D seismic
survey covering 113 square miles, including its Clear Branch acreage in north
Louisiana. This 3D should be completed by year-end with evaluation occurring
during the first quarter, 2006.
The West region drilling program is on track and showing results as
evidenced by the production growth seen in the second quarter. Through the
first six months of 2005 the West region has drilled 42 wells 41 of which are
successful. "Today we have five rigs running in the West region and more
importantly 13 wells waiting on completion," said Dinges.
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, including the Rocky Mountains and
Mid-Continent; the East, with 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
Scott Schroeder of Cabot Oil & Gas Corporation, 1-281-589-4993