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Cabot Oil & Gas Announces Gulf Coast Exploration and Development Drilling Update
Apr 22, 2002

HOUSTON, April 22 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the current status of its recent exploration and development drilling activity in the Company's Gulf Coast region. This activity includes one well in the Avery Island Field in Iberia Parish, Louisiana, and four wells in Texas, including two in Redfish Bay and two in the Aransas Pass area.

The McIlhenny #3 well, which was drilled on land acquired from Cody Energy last year, was drilled to a total vertical depth of 16,970 feet and encountered over 100 feet of oil pay in the Siph Davsi sand. The well tested at a rate of 1,123 barrels of oil per day on a 13/64" choke with a flowing tubing pressure of 2,050 psi. The well is expected to be placed on-line in early May following the completion of facility modifications. Cabot is the operator and, together with certain limited partnerships acquired from Cody, owns a 75% working interest in the well. Palace Exploration owns a 25% working interest.

"The success of this well reinforces our confidence in the long-term upside potential of the Cody acquisition," said Ray Seegmiller, Chairman and Chief Executive Officer. "This well is the first development well we have drilled on the Cody Louisiana properties which included a substantial number of development drilling locations."

Cabot continues its active South Texas program. In the Redfish Bay project, the Serrano prospect, State Tract 324 #1, is one of three previously announced successful wildcat wells drilled in the area. The well encountered 34 feet of net pay and recently began producing 5.2 Mmcf of natural gas and 521 barrels of condensate per day from the Frio sandstone with a flowing tubing pressure of 5,330 psi. The Harbor City prospect, State Tract 352 #1, located in the same vicinity, was drilled to a total vertical depth of 10,240 feet and encountered 135 feet of pay in multiple Frio sands. Completion activities are currently underway with anticipated first sales occurring in mid June. Cabot is the operator of both wells and holds a 75% and 56.25% working interest in the wells, respectively. Palace Exploration holds a 25% working interest in State Tract 324 #1 and an 18.75% working interest in State Tract 352 #1.

Cabot participated with Walter Oil & Gas as operator in two discoveries producing from the Frio sands in the Aransas Pass area. The Grant #3A well is producing 3.4 Mmcf of natural gas and 223 barrels of condensate per day with a flowing tubing pressure of 4,704 psi. The Hildebrand #1 well is producing 3.5 Mmcf and 209 barrels of condensate per day with a flowing tubing pressure of 5,950 psi. Cabot owns a 33.39% working interest in both wells.

"Wells drilled in this area of the Texas Gulf Coast over the past six months are anticipated to add a total of 12 to 15 Mmcfe per day of production net to Cabot by the end of the second quarter," commented Seegmiller. "The continued drilling success we have experienced in this region further reinforces our commitment to focus the majority of our investment on the Gulf Coast."

Seegmiller added, "Furthermore, the success of the McIlhenny well on the Cody properties illustrates the production and reserve potential from this acquisition."

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the onshore Texas and Louisiana Gulf Coast, Rocky Mountains, Appalachia and Mid-Continent. 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
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CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, +1-281-589-4993