HOUSTON, July 24, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced that its drilling program continues to be highly effective, with a 97 percent success rate in the second quarter. The Company currently has 25 rigs drilling, 26 wells completing and 177 wells remaining for 2006. "We have built significant momentum through the drill bit with very positive results just highlighted in our second quarter earnings release," stated Dan O. Dinges, Chairman, President and Chief Executive Officer. "Each region is having success, and our capital allocation to a predictable program is paying dividends with our return to a growing production profile."
Cabot has been successful on two wells in its 9,200-acre north Louisiana Castor prospect (working interest 100%) with discoveries in both the Hosston and Cotton Valley formations. The Weyerhaeuser 24-1 was completed in the Hosston formation and is flowing 5.9 Mmcf per day, while the Brazzel #4-1 was completed in the lower Cotton Valley flowing 2.9 Mmcf per day. The Brazzel well also has five Hosston sands behind pipe. Cabot anticipates first production on both these wells around September 1.
In east Texas, Cabot's Minden area (working interest 100%) continues to show significant progress with the Company now having three rigs operating. To date, Cabot has drilled 12 wells and expects to drill an additional 15 wells during the second half of 2006. Initial production rates per well have been up to 3.5 Mmcfe per day, with an average 2.6 Mmcfe per day. "I am extremely pleased with the level of success and the consistency of results coming from both east Texas and north Louisiana," added Dinges.
Cabot has finished its initial horizontal Devonian shale program in the Sissonville area in West Virginia. The last well, the Cabot 31H, was drilled with nearly 3,000' of lateral hole, the longest to date. Completion of the 31H will follow the Company's plan to do extensive micro seismic analysis, which will be used to design its completion program to improve production rates. "Cabot's latest completion has improved to over 1 Mmcf per day," stated Dinges.
The McKenna 14-14 (working interest 75%) is a Paradox Basin wildcat evaluating the gas productivity of the Paradox group. The initial well is drilling ahead and nearing the first evaluation point. Total depth is expected in two weeks and with a successful completion, this well could expose Cabot to a new gas resource play on its 40,000-acre block in the Paradox Basin.
Cabot is experiencing excellent results from its Frontier/Dakota infill program on the Moxa Arch in Wyoming. To date, Cabot and its partners have drilled 11 wells averaging 1.2 Mmcf per day per well, in line with pre-drill estimates. Plans are to participate in at least 15 more wells this year.
Cabot is pleased to announce the successful drilling of its confirmation well at Hinton in western Alberta. Cabot logged approximately 210 feet of gas-saturated sandstone in the Cabot Hinton 6-21 (working interest 60%). Production casing has been run with completion operations commencing immediately.
Also in Canada, Cabot had success at its Narraway 7-9 (working interest 63%) with an apparent wildcat discovery in multiple stacked sandstones. The well was recently completed flowing 7.6 Mmcf of gas per day. Production should be online by mid-August as this area has no pipeline constraints. A rig is currently moving in to drill the first offset well.
The initial test on the 37,000 Chime acreage block, purchased during the second quarter, is currently drilling. This well, located about six miles southeast of Cabot's Musreau field, will extend the Musreau trend onto the Chime acreage block (working interest 16-40%). The initial test should reach total depth within 2-3 weeks.
"The results from this most recent quarter and our progress with our organic drilling program highlight significant success in our strategic efforts over the last few years," commented 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, 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
Scott Schroeder of Cabot Oil & Gas Corporation, +1-281-589-4993