HOUSTON, March 20 /PRNewswire/ -- 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 four wells recently drilled or drilling on the Continental Land & Fur (CL&F) acreage in Terrebonne Parish, Louisiana, and a well drilled in south Texas.
Production from CL&F #1, the discovery well on the Etouffee prospect, began on March 6, 2000, at an initial rate of approximately 1,600 barrels of oil and 5 Mmcf of gas per day with a flowing tubing pressure of 11,800 psi. The well is currently producing 400 barrels of oil and 1.5 Mmcf of gas per day until production facility modifications are completed at which time production will be increased significantly. This well was drilled late last year to a total depth of 19,270 feet and was completed in the Lower Cib Op Sand with the top of the perforated interval at 18,694 feet. It encountered approximately 100 feet of net pay with porosity up to 35 percent.
"The Etouffee prospect is a significant discovery for Cabot Oil & Gas and furthers our confidence in the south Louisiana exploration program," said Ray Seegmiller, Chairman and CEO.
Cabot has a 33.3% working interest and a 23.3% net revenue interest in the Etouffee prospect. Union Pacific Resources Group Inc. is the operator with a 66.7% working interest.
CL&F #2, the first development offset, was recently drilled to a total depth of 20,433 feet and a production liner was set. This well will also be completed in the Lower Cib Op with production expected to begin by the end of April. Drilling should tentatively begin on a second development location, which will be higher on structure, by the end of March.
On the CL&F acreage, drilling operations were also commenced on two shallower, Middle Miocene prospects that have targeted primarily the Bourg, Hollywood and Krumbhar sands. Cabot has a 50% working interest and is the operator of both of these prospects. The Bon Ton prospect was drilled to a depth of 13,355 feet, at which time lost returns occurred due to an unexpected depleted sand and the well was temporarily abandoned. Evaluation of the open hole section has indicated potential pay of 150 feet in the Bourg, Hollywood and Krumbhar sands. Sidetrack operations will commence by the middle of May.
The drilling of the CL&F Augen prospect is in progress. The well was drilled to 11,719 feet where an unpredictable strong saltwater flow occurred. As a result, it was necessary to plug and abandon the well. The proposed total depth was therefore not reached and the objective sands were not penetrated. The rig has been skidded to a new surface location and redrilling operations have begun with a proposed total vertical depth of 13,600 feet. It should take approximately 40 days to reach total depth. Insurance is in place to cover this event.
The Gibson Sien #1 was drilled late last year as a successful development well in Aransas County, Texas. It was completed in the Frio through perforations from 11,175 to 11,231 feet. The well was recently brought on production at 6.2 Mmcf of gas equivalent per day with a flowing tubing pressure of 3,300 psi. This prospect has the potential for three offset locations, the first of which will be spud by May 1, 2000. Cabot has a 33% working interest and 24% net revenue interest in the well.
"These successes will help provide Cabot the additional growth potential we have been expecting through the expansion of our drilling efforts in the Gulf Coast over the last two years," Seegmiller commented. "As a result, we currently have four rigs drilling and plan to allocate a substantial portion of our 2000 capital budget to this area."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the Appalachian, Mid-Continent, Rocky Mountains and Gulf Coast basins. For additional information about Cabot Oil & Gas Corporation, visit the Company's 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 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
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CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, 281-589-4993