HOUSTON, Oct. 26 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation
(NYSE: COG) today announced that through the first nine months of 2006 its
drilling program has experienced a 97 percent success rate on 301 wells,
adding 146 Bcfe of new reserves before PUD reconciliation, more than
offsetting the recent sale of 68 Bcfe. Additionally, year-to-date production
is 67.8 Bcfe.
Presently the Company has 18 rigs drilling, and 28 well completion and
pipeline operations taking place. "We are on track to complete our 2006
program as planned," said Dan O. Dinges, Chairman, President and Chief
Executive Officer. "In 2006 we will drill a record number of wells, while
also making significant investments in both infrastructure and acreage for our
Dinges added, "We continue to make progress in all regions as evidenced by
the second consecutive quarter of production increases versus last year's
comparable periods from each region. The diversity of our portfolio affords
us opportunities in the varying commodity price environments we face."
Highlighted below are some of the regions' key recent accomplishments.
The second well at Hinton, the Cabot RSX 6-21 (60% WI) was completed in
the Mountain Park sandstone at test rates up to 4 Mmcf of gas per day with
6,817 lbs. shut-in tubing pressure. Expectations are to turn this well to
sales during the first quarter 2007. The third well at Hinton, the Cabot RSX
12-15 (75% WI) is currently drilling below 9,370' and is expected to reach
total depth in approximately three weeks. The field is currently producing at
a restricted rate between 5-7 Mmcf per day, which varies depending on pipeline
capacity. Cabot has committed to eliminate this variability by participating
in a pipeline expansion project, which will start next week. This project
will be complete in February 2007. The expansion capacity net to Cabot will
be approximately 25 Mmcfe per day. "Expectation is for much of this capacity
to be filled by the development of this field," said Dinges.
Our 80-acre in-fill program on the Moxa Arch targeting the Frontier and
Dakota continues to meet expectations. Through September, Cabot and partners
have drilled 21 Frontier wells with six penetrating the Dakota. The wells
show an average initial rate of 1.2 - 1.4 Mmcfe per day, from the Frontier
formation. Some of the Cabot-operated wells in the down spacing program will
test the Dakota formation for untapped potential under the Company's acreage.
A recent well in the program, the Ballerina 40-10 (WI 67% BPO), was completed
flowing 7.4 Mmcfe per day at 3,050 lbs. of flowing tubing pressure from Dakota
sandstone. "We plan to drill 15 additional wells in 2006 (four more Dakota)
and at least 30 wells in 2007 (15 to the Dakota)," said Dinges.
The McKenna 14-14 (WI 75%), San Juan County, Utah wildcat has been tested
in four Paradox group shales without establishing commercial gas flows. The
low rate flows suggest a gas-charged system controlled by very low
permeability reservoirs in this area of our acreage. The Company plans to
plug the 14-14 well and continue to evaluate the data for additional
East - Horizontal
Cabot has completed eight wells in its 2006 horizontal shale well program.
Many factors, the details of which will remain confidential, have contributed
to its successful results, including reducing drilling and completion costs to
$1MM for a well and effective flow rates after frac that have been improving
well by well from approximately 500 to 2,000 Mcf of gas per day. Cabot is
cautiously optimistic and will continue its horizontal drilling efforts with
at least 12 wells in 2007.
Cabot continues its drilling program in the Minden Field. Twenty-one
wells have been drilled to date with a 100% success rate. Thirteen wells are
currently producing with completion work progressing on eight additional
wells. Up to three rigs have been working this year, and this multi-rig
drilling effort will progress throughout 2007.
In our south Texas program we plan to drill four more wells during the
fourth quarter to continue to develop our Raymondville and McCampbell field
Recent price declines during October in the Rocky Mountains have prompted
Cabot and its partners to shut-in approximately 6 Mmcf of gas per day from
several newly completed wells. These wells will be turned back on November 1
to capture the higher pricing.
Additionally during October, we had approximately 5.5 Mmcf of gas per day
shut-in in West Virginia due to pipeline repairs and compression installation
currently underway by third-party transporting pipeline. "In the East the
large interstate pipelines have taken the opportunity of significant storage
and line pack to perform maintenance," commented Dinges. "We have been able
to limit our exposure to these efforts by redirecting our gas throughout our
pipeline system." Nearly all production has been restored.
"With the third quarter sale of our south Louisiana and offshore
portfolios, we have successfully transformed Cabot to a more predictable,
lower-risk resource focused Company," added Dinges. "This change also has the
impact of emphasizing program drilling with much less reliance on one-well
prospect opportunities, which are characteristic of south Louisiana and
offshore. To that end, our updates going forward will primarily focus on this
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading
independent natural gas producer with substantial interests onshore Gulf
Coast; the West, with the Rocky Mountains and Mid-Continent; the East and in
Canada. For additional information, visit the Company's Internet homepage at
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
CONTACT: Scott Schroeder, +1-281-589-4993, for Cabot Oil & Gas
3915 10/26/2006 14:09 EDT http://www.prnewswire.com