HOUSTON, Oct. 27 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today recent highlights of its 1997 Drilling Program that continues to experience a 90% success rate. Through September 30, 1997, 168 wells have been drilled with 17 dry holes. Particularly notable about the level of success is the drilling program's emphasis on exploration which comprises 21% of the 168 wells and has experienced a 72% exploratory success rate.
Charles P. Siess, Jr. commented, "I am very pleased with our drilling success which continues to support the validity of our primary strategy to grow through the drill bit. Sound technical practices, in particular our increased use of advanced seismic data and geological information, combined with cost efficient drilling have provided these excellent results".
Shown below are statistics on some of the recently completed wells in each of the Company's core operating areas. Eight of the twelve wells mentioned were drilled based upon seismic interpretation.
-- Hancock Gas Unit #3 - This well is a very significant discovery in the Provident City field. This Wilcox well was drilled to below 13,000 feet and tested at 11 Mmcfe per day. Today, the well is on production at 11 Mmcfe per day, and will be increased to 15 Mmcfe per day when upgraded surface facilities are completed early next month. Cabot Oil & Gas has a 67% working interest in and is the operator of this Lavaca County, Texas well. Louis Dreyfus Natural Gas (NYSE: LD) has a 32% working interest. The well encountered pay in three separate Wilcox zones, however, only one zone is currently completed. The other pay sands will be completed in the planned offset wells. This discovery has the potential to significantly add to the proved reserves of Cabot Oil & Gas in the Gulf Coast area.
-- Beaurline #14 - The Beaurline #14 is the fourth success in this field for Cabot Oil & Gas since 1996. This well is producing 3.9 Mmcf per day from the Vicksburg sand and tested at 5.8 Mmcf per day on a 14/64 choke at 4850 psi flowing tubing pressure. The Company is currently drilling an offset to this well. Cabot Oil & Gas is the operator and has a 100% working interest in both wells.
-- Schuh #1 - This well was previously highlighted by Seitel, Inc. (NYSE: SEI) in their August 20, 1997 press release. The formation identified was the Nonion Struma in Acadia County, Louisiana which tested at 10.4 Mmcf of gas per day and 440 barrels of condensate per day at 10,595 psi flowing tubing pressure. Cabot Oil & Gas has a 15% working interest in this well. As Seitel indicated, additional offsets are anticipated.
-- Stella Penn #8 - This well in the Hostetter prospect in McMullen County, TX has logged a significant Wilcox pay zone in the Slick sand and several deeper zones are being evaluated. Cabot Oil & Gas is the operator and has a 71% working interest in this well. Other wells in the Hostetter prospect include the Texaco Fee #64-1 which is under evaluation, along with the Stella Penn #7 drilling at 9,775 feet and the DH Price Gas Unit #1 drilling at 2,300 feet. Additional wells are planned for the area in 1997 and 1998.
-- Broussard Middleton #1 - This well is an exploratory discovery in the
Vicksburg formation in Chambers County, Texas. Cabot Oil & Gas is the
operator and has a 60% working interest. Duncan Energy Company is the other
partner with a 40% working interest. There are 3 productive intervals in this
well, the lower zone tested at 1.1 Mmcf per day of gas and 220 barrels of oil
per day from the F24-C sand. Cabot Oil & Gas is currently testing pay
encountered in the F24-B zone. Additional pay was found in the F24-A sand,
which will be tested after the B sand.
-- M. Kisamore #1 - This Oriskany well in Randolph County, West Virginia tested at 3,500 Mcf per day. This 100% working interest well was drilled to 8,700 feet. The Kisamore #1 has several offset Oriskany locations. Cabot Oil & Gas has over 10,000 acres in this highly prospective Oriskany trend. This play is a significant part of the new exploration program initiated in Appalachia. A three mile pipeline has been laid and initial production from this first well is scheduled for next week.
-- Edwin G. Beery #1 - This Fairfield County, Ohio well was completed in
the Rose Run formation at 4,200 feet and tested at 500 Mcf of gas per day and
75 barrels of oil per day at 650 psi flowing tubing pressure. There are
additional pay zones behind pipe in the Rose Run and Beekmantown formations.
The significance of this discovery is that it is the first Cabot operated well
in Ohio. Working interest in the well is 80%. Additional wells are planned
on the acreage.
-- Little Mounument Butte 40-27 - This 89% working interest Frontier well drilled by Cabot Oil & Gas in Sweetwater County, Wyoming, tested in excess of 6.7 Mmcf per day from a depth of 9,500 feet. The well was turned in line at 4.5 Mmcf per day.
-- Little Mounument Butte 32-28 - This 89% working interest Frontier well drilled by Cabot Oil & Gas, tested at approximately 2.2 Mmcf per day from a similar depth as the 40-27 well. The well was turned in line at 1.9 Mmcf per day.
-- Lincoln Road 30-20 - This 100% working interest well operated by Cabot Oil & Gas in Sweetwater County, Wyoming is producing from the Dakota formation with 450 barrels of oil and 400 Mcf of gas per day.
-- Simmons 3-21 - This well, which is part of Cabot Oil & Gas Corporation's new exploration efforts in the Mid-Continent, tested at 5.2 Mmcf per day and was completed in the Lower Red Fork formation. Cabot Oil & Gas has a 50% working interest in the well. There are also significant behind pipe reserves in the Upper Red Fork that are yet to be tested. Two additional offsets are planned.
-- Layman 1-20 - This well originally discovered and producing since 1996 was recently stimulated for the first time resulting in a 3 fold production increase. After fracturing, this 100% working interest well tested at 8.6 Mmcfe per day and is producing at a rate of 6.5 Mmcfe per day. The well was turned back in line during October.
Siess added, "When aggregated, these 12 wells are estimated to add 25 Mmcfe of daily production, over 80 Bcfe of gross proved recoverable reserves and more importantly set-up a number of additional drilling locations. We currently have 13 wells drilling and 41 productive wells completing or waiting on pipeline. We are continuing with our program to drill 234 wells for the year focusing on growth through the drillbit as our primary source of added value for Cabot Oil & Gas Corporation shareholders."
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 COG'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