HOUSTON, Feb. 17 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the Company's total proved reserves at December 31, 2003 were 1,142.1 Bcfe, down slightly from the prior year-end due to 53.4 Bcfe of reserve sales during the year. For the year, the Company replaced 127 percent of its production, 125 percent of which was through the drill bit. This was accomplished at a finding cost of $1.46 per Mcfe that includes the start-up costs associated with the Company's offshore and Canadian expansion efforts. For the five years ended 2003, Cabot's production replacement percentage is 163 percent, at an average finding and development cost of $1.38 per Mcfe.
"As has been highlighted many times, opportunities for replacing reserves are getting increasingly more difficult to find, but again Cabot was able to successfully accomplish this and at a reasonable cost to find," said Dan O. Dinges Chairman, President and CEO. "Our success in 2003 was driven by the results coming from the East where the Company added 72.0 Bcfe at a cost of only $0.39 per Mcfe."
Miller and Lents, a well respected oil and gas reserve engineering firm,
has audited 100 percent of the Company's reserves each year for the last
Listed below are reserve related disclosures that will be part of the 2003
Supplemental Oil & Gas Information for the Year Ended December 31, 2003
2003 Proved Reserve Reconciliation Proved Reserves Natural Gas Liquids Total (Mmcf) (MBbls) (Mmcfe) Beginning of Year 1,060,959 18,393 1,171,316 Revision (6,122) 307 (4,278) Additions 105,497 1,723 115,835 Production (71,906) (2,846) (88,976) Purchases 1,590 --- 1,591 Sales (20,534) (5,474) (53,380) End of Year 1,069,484 12,103 1,142,108 Developed (% of reserves) 76.0% 77.7% 76.1% Estimated Proved Reserves by Region at December 31, 2003 Natural Gas (Mmcf) Liquids (A) (MBbls) Developed Undeveloped Total Developed Undeveloped Total Gulf Coast 121,476 50,163 171,639 6,603 2,216 8,819 West 335,858 72,534 408,392 2,412 482 2,894 East 354,946 134,507 489,453 390 --- 390 Total 812,280 257,204 1,069,484 9,405 2,698 12,103 Total (B) (Mmcfe) Gulf Coast 161,095 63,459 224,554 West 350,331 75,430 425,761 East 357,286 134,507 491,793 Total 868,712 273,396 1,142,108 (A) Liquids include crude oil, condensate and natural gas liquids. (B) Natural gas equivalents are determined using the ratio of 6 Mcf of natural gas to 1 Bbl of crude oil, condensate or natural gas liquids. Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities - 2003 (C) ($000) Property Acquisition Costs - Proved 1,524 Property Acquisition Costs - Unproved 14,056 Exploration and Extension Well Costs 83,147 Development Costs 77,006 Total Costs 175,733 (C) Includes administrative exploration costs of $10,582, which are excluded from the Company's calculation of reserve replacement costs.
"The year provided several highlights including exploration success in the Rocky Mountains and the significant expansion of our commodity play from our East operations," said Dinges. "Add to this, development drilling success in the Gulf Coast along with the expansion offshore where we were four out of seven with net production of 22 to 25 Mmcf per day expected in 2004, Cabot posted a solid year," Dinges added, "We have numerous exploration opportunities in our drilling inventory. The 2004 program exposes Cabot to a net unrisked reserve potential of 400 to 500 Bcfe."
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, with the Rocky Mountains and Mid- Continent; the East and 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