Gulf Coast Region Production
HOUSTON, March 20 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced a 12 percent increase in its net daily Gulf Coast region production as the result of seven new completions. "The contributions coming from these wells, together with the momentum in our other regions, put our overall daily production profile at 250 Mmcfe per day for the first time since August 2004," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "The additional positive this activity illustrates is that the new volumes come from several different plays throughout the region, once again giving credence to Cabot's successful diversification efforts."
The specifics of the new wells include (volumes reported on a gross basis):
* Vernon Field -- Through an acquisition in late 2005, Cabot added acreage in this field and immediately commenced its drilling effort. The result has been two successful wells in as many attempts. The Davis Brothers 10A-2 Alt came on line at 11.2 Mmcf per day with a flowing casing pressure of 2,250#. The Weyerhaeuser 10-1 Alt was turned in line at 7.2 Mmcf per day with a flowing casing pressure of 1,600#. Cabot holds a 72.65 and 71.4 percent working interest respectively in these wells. * McCampbell Field -- Through a 2005 acquisition the Company took control of this field and started its drilling and re-completion effort, and the early success is positive with the re-completion of the Grant 4A producing 8.2 Mmcfe per day at a flowing tubing pressure of 5,882#. Additionally the recently drilled Grant 7A logged pay and is scheduled to come on line in April at similar rates. Working interest in these wells is 92 percent. * Red Fish Bay Field -- Cabot successfully recompleted the State Tract 277 #1, which resulted in 11.3 Mmcfe per day of production at flowing tubing pressure of 5,121#. Working interest is 75 percent. * Offshore -- After several delays due to the post-hurricane work, the Company's East Cameron 111 discovery came on line at 19.7 Mmcf and 323 barrels of oil per day at a flowing tubing pressure of 6,650#. Cabot holds a 50 percent working interest in this well. Also offshore, the Breton Sound 41-2 ST #1 was completed and is producing at 12.6 Mmcf per day with pressures of 6,190#. The Company is a 17.5 percent owner in this well. * South Louisiana -- Cabot completed its Shallow Horn discovery, the CL&F 21-1, with a production rate of 3.4 Mmcfe per day. Working interest is 100 percent. * Minden Field -- The Company has completed four wells in this field at rates between 1-3 Mmcf of gas per day. One rig is currently drilling with a second rig scheduled in 2-3 weeks. Working interest is 100 percent.
"With the addition of these volumes, our Gulf Coast region is off to a good start for 2006 in its effort to grow its production," stated Dinges. "Combined, all regions are now showing growth in both production and reserves which is very attractive, especially considering the organic strategy on which we have predominately focused."
Dinges added, "In addition, in our Canadian operation, the Hinton discovery (working interest 75 percent) has come on line at a restricted level of 4 Mmcf per day increasing to a restricted rate of 8 Mmcf per day within the week. Once pipeline construction is completed (estimated to be late 2006), this well could produce at 20-25 Mmcf per day."
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading North American exploration and production independent. The company's reserves are focused in both conventional & unconventional basins including the East, the West (Rocky Mountain and Mid-Continent), the Gulf Coast (South and East Texas to North Louisiana) and in Canada. For additional information, visit the Company's Internet homepage at www.cabotog.com .
SOURCE Cabot Oil & Gas Corporation
CONTACT: Scott Schroeder, +1-281-589-4993, for Cabot Oil & Gas Corporation
4569 03/20/2006 08:30 EST http://www.prnewswire.com