HOUSTON, Feb. 15 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) announced today that it has started 2007 with a high level of activity as it prepares for its largest drilling program ever. "The 440 plus gross well program is more than double the level of activity in 2003 and up 14 percent from 2006," stated Dan O. Dinges, Chairman, President and Chief Executive Officer. "We have commenced our downspacing program in the Moxa Arch area, we have initiated our horizontal drilling efforts in both East Texas and our Appalachia region and we have started our initial ramp up of production in Canada."
The anticipated pipeline upgrade to the Hinton prospect area has been completed and is now operational. The Hinton project initial flowing rate was approximately 25 Mmcf per day gross, 14 Mmcf per day net to Cabot from two wells. The third well has been completed and will be tested shortly with an anticipated tie in within four weeks. Cabot plans to drill two wells on the structure during the first half of 2007 with the first well to be spud in late March. "To further delineate this field, we have purchased 24 square miles of 3D seismic data," said Dinges. "Early indications show numerous additional drilling locations available to develop this discovery."
Cabot has initiated its 2007 drilling program in the East region, with eight rigs now operating with the peak level anticipated to be 12 to 14 rigs working during the second and third quarters. Importantly, the Company has drilled it's first 2007 horizontal shale well of the season and is currently drilling its second location. "Mechanically the first well improved its drilling time to 15 days at a cost of $790,000," commented Dinges. "A six stage frac completion is scheduled in the next two weeks. Our plans are to drill 12 to 15 horizontal wells to continue our evaluation of horizontal drilling in the Huron section of the Upper Devonian shale."
Cabot continues to expand drilling activity in the Minden area where it has successfully drilled and completed more than 40 wells in as many attempts. The Company has four rigs operating in the field with plans to maintain an active pace throughout the year. "All of our success to date has occurred from vertical wells in this field, a program we will continue," stated Dinges. "We will also drill a horizontal well in the field area to test the Cotton Valley, which should be spud in late March."
The Company continues its development of the County Line discovery announced earlier. The plan in 2007 is to drill at least four horizontal wells, two to the Pettet Limestone and two to the James Limestone. Cabot is currently participating in a 7000' horizontal James Limestone well adjacent to the Company's acreage block. This well is nearing total depth. "While it is too early to draw any conclusions, we are encouraged by the drilling results of this well," added Dinges.
"Cabot has several opportunities in each of its operating regions to exploit," commented Dinges. "With these opportunities, a strong balance sheet and a hedge position that protects our cash flow, we expect to fully execute our record drilling program."
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 a new position 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 -0- 02/15/2007 /CONTACT: Scott Schroeder of Cabot Oil & Gas Corporation, +1-281-589-4993/ /Web site: http://www.cabotog.com / (COG) CO: Cabot Oil & Gas Corporation ST: Texas IN: OIL SU: MH-DP -- LATH107 -- 8804 02/15/2007 19:00 EST http://www.prnewswire.com