HOUSTON, March 13 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation today announced early successes from its 2008 drilling program with positive results at County Line, Hinton and the Moxa Arch. Additionally, the Company announced the curtailments at its horizontal Huron shale play in West Virginia have been resolved.
At County Line in east Texas, Cabot announced its 15th consecutive successful completion in the horizontal James Lime. The Timberstar Sanford #1 (W.I. 65.2%) was completed with an initial production rate of 12.6 Mmcf per day and was immediately turned in line. "This play continues to yield wells with significant flow rates that provide a 30-day average of 5-6 Mmcf per day," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "Also, in addition to County Line successes, Hinton continues to be a bright spot for our Canadian operation. The latest success is with the Cabot RSX Hinton 4-15 (W.I. 75%) well, which we anticipate will be turned in line at more than 10 Mmcf per day." Dinges added, "The key to our consistent success at Hinton has been a new 3-D seismic interpretation that has provided four straight strong completions. The 3-D interpretation also indicates additional running room on our acreage."
In Wyoming, Cabot recently expanded its Moxa Arch effort for 2008 from 7 to 21 wells based on underlying support for the commodity prices. At the same time the Company announced the completion of an excellent Frontier well. The Lincoln Road 60-21 unit well (W.I. 47%) flow tested at 6.5 Mmcf of gas per day. "We are excited when we see these rates from a Dakota completion, but when it occurs in our base Frontier effort, it makes us take note," commented Dinges. "In this area we are also evaluating downspacing the Frontier to 40 acres and the potential of developing the Frontier through horizontal drilling."
At its Hurricane horizontal project in West Virginia, the Company stimulated its wells with induced nitrogen. This week the Company finished installation of its blending line and tap and is now able to mix the nitrogen-induced gas with pipeline quality gas to meet pipeline specifications. "We have commenced completions on five horizontal Huron wells drilled late last year. All of these wells should be producing by early April," added Dinges.
Cabot did add to its 2008 position and now has approximately 160 Mmcf per day hedged for the remainder of the year -- the details of which are on the website. "The recent trades were wide collars covering April through December with the lowest floor being $8.45 per Mcf in the Rockies and the highest ceiling being $14.66 per Mcf in Appalachia," 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, with the Rocky Mountains and Mid-Continent; the East and in Canada. For additional information, visit the Company's Internet homepage at http://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.
