HOUSTON, Nov. 20 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today that it completed the previously announced 7.19%, 12-Year, $100 million private debt placement on November 18, 1997. The proceeds were used to reduce borrowings on the Company's revolving line of credit. Also, this week, Cabot Oil & Gas removed from escrow, the remaining proceeds from its Northwest Pennsylvania asset sale using these funds to reduce the Company's total debt outstanding. Today, Cabot Oil & Gas Corporation's debt is $198 million, down from $268 million on December 31, 1994.
Charles P. Siess, Jr., Chairman and Chief Executive Officer stated, "Our ability to place $100 million in the market at 7.19% truly speaks to the progress our Company has made over the last two and one half years. Coupled with the upgrading of our asset base, Cabot Oil & Gas shareholders now have a stronger company in terms of prospects for growth, lower leverage and a solid financial base." Siess added, "During the 45 day identification period allowed for like-kind exchange tax benefits, we were unable to find a replacement property that matched our acquisition criteria other than the $44 million purchase in Wyoming. In this transaction, we added 74 Bcfe of reserves, 65 wells and 70 additional drilling locations in the Green River Basin. While building shareholder value through the drill bit and synergistic acquisitions remains our primary objective, using the excess proceeds to reduce debt is a very attractive alternative at this time."
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 about the Company, visit Cabot Oil & Gas Corporation'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