HOUSTON, Feb 16, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced that its Canadian subsidiary, Cabot Petroleum Canada Corporation, has had a significant discovery from its Hinton prospect. This well, located in northwestern Alberta, was drilled to a depth of 10,690 feet and encountered three productive zones with 118 feet of net pay.
Cabot has completed only one zone in a 106 ft. pay section and is preparing to put on production this new pool discovery well, named the Cabot Hinton 11-16-51-16W5M. Although this section flowed naturally, a fracture stimulation was done and the well was tested on a restricted choke at 7.3 Mmcf per day at 7,061 pounds flowing tubing pressure. Cabot has a 75 percent working interest in the well and in one offsetting section, along with a 60 percent working interest in 10 additional sections on this play (7,680 gross acres, 4,800 net acres).
"This discovery is a giant step forward to our grass roots effort in Canada that began in 2003," stated Dan O. Dinges, Chairman, President and Chief Executive Officer. "As we have worked diligently to gain access to acreage, we have found a sweet spot in this area just west of the highly productive Wild River area. We anticipate the well to be on production before the end of February at a rate of up to 12 Mmcf of gas per day." Dinges added, "We also believe the well will produce at rates over 20 Mmcf of gas per day once upgrades in pipeline are in place."
The Company is in discussions to expand takeaway capacity in this area to over 50 Mmcf of gas per day by year-end. Two offset development locations are planned for later this year with further drilling earmarked for 2007 dependent on success.
Cabot initiated our Canadian Musreau project with its first successful completion in early 2004. Since that time, Cabot has subsequently drilled six additional wells on its operated leasehold without a dry hole, while in a non-operated position Cabot has participated in three additional wells that have been drilled and completed on adjoining leasehold.
Currently, six Cabot operated wells are producing with one additional well being completed. Initial production rates from the wells have ranged from 1 Mmcf of gas per day to over 5 Mmcf of gas per day. The maximum test rate observed to date is over 13 Mmcf of gas per day. Today gross production from this area is approximately 16 Mmcfe per day.
"Cabot's working interest ranges between 24-45 percent and during 2006, we plan to drill three additional wells in the Musreau area," stated Dinges. "We own an inventory of 18 to 20 locations on 160 acre spacing solidifying our program drilling strategy in Canada."
Other Exploration Activity
Cabot has recently cased two exploration wells in the Narraway and Smokey areas and is currently moving the rig to a third exploration project at Sutton. Cabot has significant acreage in each of these areas that will allow for follow-up development drilling upon successful completion of these exploration wells. Additional information will be available following completion results.
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.
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
Scott Schroeder of Cabot Oil & Gas Corporation, +1-281-589-4993