HOUSTON, July 28, 2005 /PRNewswire-FirstCall via COMTEX/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced drilling success in north Louisiana, offshore GOM, south and west Texas, expansion of its leasehold in key areas of its Gulf Coast operation and other operational accomplishments.
During the second quarter, Cabot drilled and completed the Weyerhaeuser 9-1 well (Cabot 85% WI) at its Eros prospect in north Louisiana. After four fracture stimulations, the well was turned in line this week producing 5.8 Mmcfd of gas at a flowing casing pressure of 2,075 psi. The Weyerhaeuser 15-1 well (Cabot 87.5% WI), a further step out to the east, has also completed drilling and initial log indications are similar to the 9-1 well. The Company is securing services for completion. "If the 15-1 completes as well as the log indicates, we will have as many as 15 offsetting locations in the field, with additional potential on adjoining acreage currently being evaluated with 3D," stated Dan O. Dinges, Chairman, President and Chief Executive Officer.
The Company has successfully completed the East Cameron 111 #1 wildcat well, which tested at 11.38 Mmcf and 364 barrels of oil per day at flowing tubing pressure 7,230 psi from a Tex L sandstone. Cabot has a 50% working interest and operates the well. Production is expected to commence during the fourth quarter.
In other drilling related news, Cabot has drilled and is completing its first well in its Conger field in west central Texas. The successful completion of this well sets up over 40 operated locations. We are currently drilling the second well in this program. At Cabot's Bego field in south Texas, the Company successfully drilled the Bego Gas Unit #3 to 13,000' with discovered pay in the Wilcox formation. Fracture stimulation is planned for the well in the near term. The well sets up multiple development offsets. "With both of these opportunities, success will translate into room for development over a longer period of time," said Dinges. "This would also serve as a way to extend the reserves life in the Gulf Coast, enhance our growth opportunities and mitigate some of the volatility in our production stream."
The Eastern region program has drilled 86 of its 200 well program with 100% success. One hundred nineteen (119) wells of the program will test the Ohio shale. "To date, we have successfully drilled and completed 39 shale wells with four rigs currently drilling," said Dinges. "As a frame of reference, 27 percent of our wells in the east produce from the shale."
The Company is also pleased to announce that it has successfully acquired two properties complimentary to its existing leasehold; one in south Texas and one in east Texas. In south Texas, Cabot acquired additional working interest and becomes the operator in a field where it previously held 33 percent working interest.
In another deal, Cabot has signed Agreements wherein the Company has acquired drilling rights from a major oil company covering about 3,000 net acres in Rusk County, Texas. Drilling is expected to commence during the third quarter for this Cotton Valley objective. "Both of these deals expand Cabot's resource opportunity base and will provide additional lower risk drilling opportunities," added Dinges.
Cabot, along with two partners, has agreed to terms for a 3D seismic survey covering 113 square miles, including its Clear Branch acreage in north Louisiana. This 3D should be completed by year-end with evaluation occurring during the first quarter, 2006.
The West region drilling program is on track and showing results as evidenced by the production growth seen in the second quarter. Through the first six months of 2005 the West region has drilled 42 wells 41 of which are successful. "Today we have five rigs running in the West region and more importantly 13 wells waiting on completion," said Dinges.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading independent natural gas producer with substantial interests in the Gulf Coast, including Texas and Louisiana; the West, including the Rocky Mountains and Mid-Continent; the East, with an expansion effort 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