HOUSTON, July 28 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the signing of a definitive agreement to purchase the Green River Basin assets in Wyoming of Equitable Resources Energy Company. For its $44 million investment, Cabot Oil & Gas will receive proved reserves of approximately 74 Bcfe from interests in 65 wells, current daily production totaling about 10 Mmcfe net and nearly 70 potential drilling locations. The Company will initially fund this transaction from its Revolving Credit Facility while looking at several options to repay the incremental debt, which include the possibility of accepting offers for certain non-strategic properties. Closing of the purchase is scheduled for the end of September, 1997.
"This acquisition, when coupled with the sale of non-strategic assets, is another significant step in the rationalization program begun in 1995 to provide our shareholders with a better mix of high performing assets and high potential drilling locations," stated Charles P. Siess, Jr., Chairman and Chief Executive Officer. "Complimenting this effort is the significant level of operating synergies that come with the acquisition."
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, visit the Company'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
SOURCE Cabot Oil & Gas Corporation
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, 281-589-4993