HOUSTON, Feb. 17 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced the results of its recent drilling activity in the Rocky Mountains and the Gulf Coast, along with a pipeline acquisition in West Virginia.
The Osborne Spring Unit #32-14 wildcat well, drilled to test the Cyclone Rim prospect in Sweetwater County, Wyoming reached a total depth of 13,760 feet in February 2004. Over 150 feet of potential pay was encountered in the Cretaceous Ericson, Almond, Lewis and Lance formations. The well is currently waiting on completion. Cabot has a 50 percent working interest and operates the well. The prospect covers 11,500 acres. Davis Petroleum Corporation controls the remaining 50 percent working interest. This well represents Cabot's second basin-centered gas discovery in the last six months.
At the Nickey prospect, located 12 miles southeast of the Cyclone Rim discovery, Cabot completed its first offset well, the Wind Dancer #20-29 in the Almond and Lewis formations in December 2003, flowing 1 Mmcfe per day. Completion operations are proceeding on two additional offsets. The Wind Dancer #40-28 well, drilled in December 2003, will be completed in the Lewis and Lance formations. The Wind Dancer #40-21 well, drilled in January 2004, will be completed in the Almond and Lewis formations. Nine additional wells are planned for 2004. Due to regulatory restrictions Cabot will not be able to commence the drilling of these nine wells until August. Cabot has an average 47 to 50 percent working interest in the majority of this 20,000-acre prospect.
"Our Rocky Mountain area continues to gain traction with its exploration program," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "We remain optimistic that Nickey has at least 25 to 30 offset locations, which when combined with the potential of similar development at Cyclone Rim, provides a good bit of running room."
Eugene Island 280 #1 well was drilled to a depth of 17,470 feet, encountering at least 81 feet of net pay in two intervals, and 114 feet of additional potential pay between 15,800 feet and 16,500 feet. The well is in 190 feet of water. Production is expected to commence by the fourth quarter of 2004. Cabot has a 25 percent working interest in this well.
The Eugene Island 142 #5 well was announced last week by Energy Partners Limited with the following facts. The well was drilled straight hole to a depth of 19,316 feet and encountered over 80 feet of apparent pay below 17,000 feet. The well is in 48 feet of water. Cabot holds a 10% working interest. According to the operator, production is expected during 2004's fourth quarter.
The Company is a participant in two discoveries at Breton Sound Block 41. The #4 well was drilled to a depth of 14,544 feet and encountered 119 feet of net pay from the Tex W Sandstone. The #5 well was drilled to a similar depth of 14,809 feet and encountered 200 feet of net pay. Due to existing facilities being installed as the result of previous drilling success, the wells should be turned in-line in July 2004. Cabot holds a 17.5 percent working interest in the field's four wells.
The Company also experienced dry holes at West Cameron 601, Eugene Island 336 and Vermilion 103.
"In 2003, Cabot made a concentrated effort to enter the offshore arena as a complement to its onshore Gulf business," said Dinges. "The fact we were successful in four out of seven exploration attempts (57 percent) is a very positive indication of the talent of the newly assembled team."
In December, Cabot acquired 53 miles of a 10-inch pipeline that runs from Logan County, WV through the Company's Danville operations, northeast to the industrial corridor of Charleston, WV. Now operational, this pipeline will allow for increased drilling and multiple delivery outlets for this previously pipeline-constrained area.
"With our significant undeveloped acreage position in the Danville area, this natural gas pipeline provides much needed takeaway capacity," commented Dinges. "This acquisition fits well with our recent strategy of enhancing our infrastructure to provide future growth opportunities. Our 2004 plan calls for the drilling of about 100 wells in the Danville area, beginning in March, to immediately begin taking advantage of this new asset."
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, with the Rocky Mountains and Mid- Continent; the East and 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