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Cabot Oil & Gas Finalizes Year-End Reserves
Feb 12, 2001

HOUSTON, Feb. 12 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the final results of its year-end reserve audit. Total proved reserves increased to 1,018.7 Bcfe at December 31, 2000, compared to 978.7 Bcfe in the prior year. For the year, Cabot replaced 165% of production and reported finding and development costs of $.98 per Mcfe. In total, 104.4 Bcfe was added through the drill bit (adjusted for revisions) and 5.8 Bcfe through acquisitions. Also, at year end, discounted future net cash flows (pre-tax PV10) attributable to proved oil and gas reserves grew from $737.8 million in 1999 to $3.5 billion in 2000 based on a Henry Hub price movement from $2.14 per Mcf in 1999 to an unprecedented $9.52 per Mcf for 2000.

"The significant success of our Gulf Coast drilling program was the primary contributor that drove reserves back over the 1 Tcfe level for the third time in our history," said Ray Seegmiller, Chairman and Chief Executive Officer. "While the year-end natural gas price had a definite impact on the present value of proved reserves, Cabot's reserve base did not change appreciably due to the higher prices."

Seegmiller added, "If our reserves had been valued at a $4.00 price, (which is close to the Henry Hub average for 2000) using the same year-end price differentials, total proved reserves would still be above the 1 Tcfe mark at 1,005.4 Bcfe with a resulting pre-tax PV10 of $1.3 billion."

Listed below are reserve-related disclosures that will be part of the 2000 Form 10-K.

                      Supplemental Oil & Gas Information
                         Year Ended December 31, 2000

                                  2000 Proved Reserve Reconciliation
                              Natural Gas         Liquids          Total
                                 Mmcf              MBbls           Mmcfe
    Proved Reserves
      Beginning of Year        929,602             8,189         978,741
      Revisions                (14,796)              562         (11,423)
      Additions                103,600             2,032         115,792
      Production               (60,934)             (988)        (66,872)
      Purchases                  5,118               120           5,838
      Sales                     (3,368)               (1)         (3,373)
    End of Year                959,222             9,914       1,018,703

    Costs Incurred in Oil and Gas Property Acquisition, Exploration and
    Development Activities - 2000* ($000)

    Property Acquisition Costs - Proved               $5,954
    Property Acquisition Costs - Unproved             10,869
    Exploration and Extension Well Costs              40,008
    Development Costs                                 59,879
            Total Costs                             $116,710

    *  Note:  These costs include exploration administrative expense of
              $8.4 million that the Company does not consider in its finding
              cost calculation.

    Estimated Proved Reserves by Area at December 31, 2000

                            Natural Gas (Mmcf)          Liquids(A) (MBbl)
                     Developed Undeveloped  Total  Developed Undeveloped Total
    Gulf Coast         77,721    28,074    105,795   5,525       837     6,362
    Rocky Mountains   182,790    50,446    233,236   1,550       587     2,137
    Mid-Continent     182,927    28,911    211,838     990        52     1,042
    Appalachia        311,524    96,829    408,353     373         0       373
      Total           754,962   204,260    959,222   8,438     1,476     9,914

                             Total(B) (Mmcfe)
                     Developed Undeveloped  Total
    Gulf Coast        110,871    33,093    143,964
    Rocky Mountains   192,090    53,969    246,059
    Mid-Continent     188,867    29,222    218,089
    Appalachia        313,762    96,829    410,591
      Total           805,590   213,113  1,018,703

    (A) Liquids include crude oil, condensate and natural gas liquids (Ngl).
    (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.

Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading domestic independent natural gas producer and marketer with substantial interests in the onshore Texas and Louisiana Gulf Coast, Rocky Mountains, Appalachia and Mid-Continent. 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
Web site: http: //www.cabotog.com
Company News On-Call: http: //www.prnewswire.com/comp/129660.html or fax, 800-758-5804, ext. 129660
CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, 281-589-4993