HOUSTON, Feb. 25 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the final results of its year-end reserve audit. For the year, COG replaced 181% of its production, adding 72 bcfe through the drill bit and 39 Bcfe from acquisitions in existing areas of operations. "These results highlight the effectiveness of COG's strategy that was reinstated in 1995 of growth through the drill bit and synergistic acquisitions," commented Charles P. Siess, Jr., Chairman and Chief Executive Officer. Mr. Siess went on to remark that, "The finding cost from our 1996 capital program was truly exceptional. To add reserves at $.55 per mcfe, while having a drilling program of 196 wells for the year and purchasing assets in an energy market characterized by high prices, is quite an accomplishment."
For 1996 proved reserves increased to 947 Bcfe from 922 Bcfe in the prior year. This increase occurred even after selling over 25 Bcfe of non-strategic and Section 29 reserves in 3 separate transactions during 1996. Discounted future net cash flows (pre-tax PV-10) attributable to proved oil and natural gas reserves grew 75% from the prior year to $1,166 million at December 31, 1996. This $500 million increase was primarily due to the improved natural gas market at the end of 1996. The number of proved undeveloped drilling locations also increased slightly to 374 from 368 in 1995.
"I continue to be pleased with the progress the company has made during the last two years. The low finding costs, coupled with our recently announced record earnings, are strong indications of the Company's momentum as we enter 1997. For 1997 we plan to continue to exploit our strong asset position and look for strategic purchases in and around our core areas of operations, in order to continue the growth that we have experienced during 1996," stated Mr. Siess.
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.
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, 281-589-4993 or Ray Seegmiller, 281-589-4696, both of Cabot Oil & Gas