HOUSTON, April 30 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today provided a regional operating update highlighting results from its first quarter drilling program that was 99 percent successful. "Presently, we have 20 rigs drilling across our regions," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "Nearly half of this activity is in the east including one rig drilling horizontally."
Two new initiatives have started in the Minden Field, which with success can have a positive incremental impact on future drilling and production in the field. The first is commencing the development of the Travis Peak sandstone, which has been present in a majority of the 49 wells drilled here to date. The Company has drilled its first two wells, establishing production in the Kennedy #3 (WI 100%) flowing approximately 1.5 Mmcf per day from two sands with a third completion underway. The second well, White #2 (WI 100%), was completed in one Travis Peak sand flowing 160 barrels of oil and 400 Mcf per day. Additionally, Cabot has received approval to commingle production from the Travis Peak with the Cotton Valley. "We are presently preparing to perforate the Travis Peak in the Carlton #1, an earlier Cotton Valley well and commingle both zones," stated Dinges. "This well will be the first of a program to add behind pipe Travis Peak reserves to our production stream."
The second initiative is the first Cotton Valley horizontal test at the Pinkerton 9H well (WI 100%). This 12,810-foot test will evaluate the lower portion of the Cotton Valley sandstone. The well reached total depth of 12,683 feet with a 2,200 foot horizontal leg. Production casing has been set with completion scheduled in May.
At County Line, the Company has reached total depth and set production casing at the Timberstar #1 (WI 100%), a horizontal Pettet well. The well reached a 12,328 total depth with horizontal penetration of 4,250 feet. The Company is currently drilling the Timberstar #2 (WI 100%), an adjacent and parallel well to test the James Limestone. This well will drill approximately 4,200 feet of horizontal hole and is currently drilling at 7,400 feet.
Also at County Line, the Company participated in a horizontal well as a non-operator on the southernmost portion of the acreage. This well tested the James Limestone at 4.2 Mmcf per day from multiple completions in a 7,000 foot lateral leg.
At the Hurricane horizontal shale project, the Company has set pipe on its fourth well in the 2007 program. The last well, the Conrad #1H, drilled a 3,265-foot lateral, reaching total depth in 13 days at a cost of $628,000. "A six-stage completion is planned for this well," commented Dinges. "This brings total horizontal wells drilled at Hurricane to six and 12 for the program. The Company is currently constructing a field gathering system for the Hurricane project, which is anticipated to be completed with gas flowing to sales by the first week of June, 2007." Dinges added, "By the second quarter conference call we should have a good handle on production coming from the Hurricane area."
In the southern West Virginia tight sands play, Cabot has completed several significant producers. The Lyon #2 tested an open flow of 3.5 Mmcf per day and is producing at 1.8 Mmcf per day from the Maxton sandstone. The Logan Wyoming B13 was tested at 4.1 Mmcf per day from commingled Berea and Big Lime and was turned in line at 1.1 Mmcf per day. "While there is considerable buzz around east horizontal wells, these tight sand wells highlight the importance and value in our vertical program," said Dinges.
Cabot continues to exploit its substantial acreage position in the Mid- Continent and Rocky Mountains. Cabot and partners drilled 18 wells with a 100% success rate in the first quarter of 2007. In the Mid-Continent area, where Cabot has 265,000 gross acres, 11 wells with an average initial production of 800 Mcfe per day and average reserves over 1.0 Bcf per well have been drilled, developing the Chester and Morrow plays. Our most recent Chester completion, the Whitlaw #10-1, tested at 2.0 Mmcf per day. Cabot has two drilling rigs operating in the area for its 50 to 60 well 2007 program.
In the Moxa Arch of the Rocky Mountains, Cabot's down-spacing program success continues with the Blue Forest #65-14 Frontier well that had initial production into pipeline of 1.9 Mmcfe per day. The Company also completed the Coal Gulch #80-4 Almond producer that also had initial production of 1.9 Mmcfe per day in the Wamsutter area. Cabot plans to drill an additional 40-50 wells in the Rocky Mountains in 2007.
The Hinton project is producing about 14 Mmcf per day from the Hinton #1-11-16 (WI 75%) at 1,350 lbs. flowing tubing pressure. The initial well is meeting expectations; however, results from the two development wells have not fully met expectations. Cabot recently purchased a 24-square-mile 3D survey over the field, evaluation of which has identified 6-8 additional drilling locations in the Mountain Park and Dunvegan sandstones. The first new location, the Hinton #4-9-20, (WI 60%) a north offset to the discovery well, is currently drilling at 9,682 feet.
At Boltan, the Smoky #1-5-12 (WI 35%) initial wildcat found pay in the Dunvegan and Gething sandstones. The well has been completed flowing 5.3 Mmcf per day from the commingled sandstones. This discovery sets up 16-20 additional locations on our 5,120-acre block.
"Based on the early 2007 drilling success, our expectation to return to pre-sale production levels by the start of the fourth quarter remains our objective," stated 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 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.
CONTACT: Scott Schroeder
Cabot Oil & Gas Corporation
Web site: http://www.cabotog.com
SOURCE Cabot Oil & Gas Corporation