Cabot Oil & Gas Provides Marcellus Operations Update

HOUSTON, Sept. 27  /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE:COG) today, in response to several inquiries, reported that the Pennsylvania Department of Environmental Protection (PADEP) has shut down hydraulic fracturing of Cabot wells in Susquehanna County until a full review can be completed and precautionary steps taken. Existing Company drilling and production are not impacted. "The only acceptable practice for Cabot is to be in full compliance with all environmental and regulatory policy; therefore, we are working cooperatively with the regulators," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "A resolution of the PADEP action will occur following a review of the causes associated with these releases and approval of future operating procedures."

Cabot's Marcellus production reached a new high at the end of last week measuring 52 Mmcf per day. "Contributing to the increase was our most recent horizontal completion which experienced a 24-hour initial production rate greater than 10 Mmcf per day and a 30-day average rate of 10.8 Mmcf per day," stated Dinges. "This well is currently producing at 11.1 Mmcf per day." The combination of this well, other primarily vertical completions and initial production streams from a couple of horizontal wells which are cleaning up have led to this new high for Pennsylvania Marcellus production. "Additionally from the first seven horizontal wells that have been producing for varying time frames, we have two that have produced over 1 Bcf and, combined, these wells have a 90-day production average of approximately 6.0 Mmcf per day," commented Dinges.

"With the recent record level of production coming from Susquehanna, we expect to exit the third quarter with production slightly above the upper level of our current published production guidance," added Dinges. "Because of this fact and the expeditious effort to resolve the PADEP matter, we see no reason to adjust guidance at this point."

Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent natural gas producer, with its entire resource base located in the continental United States.  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. 

DATASOURCE: Cabot Oil & Gas Corporation



CONTACT:  Scott Schroeder, [phone], for Cabot Oil & Gas

Corporation



Web Site:  http://www.cabotog.com/ 

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