Cabot Oil & Gas reports finds in Wyoming, Gulf of Mexico

By OGJ editors

HOUSTON, Feb. 24 -- Cabot Oil & Gas Corp., Houston, has reported recent drilling activity results in the Rocky Mountains and the Gulf Coast:

The Osborne Spring Unit No. 32-14 wildcat, drilled to test the 11,500 acre Cyclone Rim prospect in Sweetwater County, Wyo., reached 13,760 ft TD this month and encountered 150 ft of potential pay on the Cretaceous Ericson, Almond, Lewis, and Lance formations. Preparations are being made to complete the well. Operator Cabot has a 50% working interest in the well, and Davis Petroleum Corp. 50%.

At the Nickey prospect, 12 miles southeast of the Cyclone Rim discovery, Cabot completed its first offset well, Wind Dancer No. 20-29 on the Almond and Lewis formations in December 2003, flowing 1 MMcfed of gas. Completion operations are proceeding on two additional offsets. Wind Dancer No. 40-28, also drilled in December, will be completed on the Lewis and Lance formations. Wind Dancer No. 40-21, drilled in January, will be completed on the Almond and Lewis formations. Drilling will begin in August on nine additional wells. Cabot has a 47-50% working interest in most of this 20,000 acre prospect.

In the Gulf of Mexico, Eugene Island 280 No. 1 well was drilled to a depth of 17,470 ft, encountering at least 81 ft of net pay in two intervals, and 114 ft of additional potential pay at15,800-16,500 ft. The well is in 190 ft of water. Production is expected to commence by the fourth quarter. Cabot has a 25% working interest in this well.

Energy Partners Ltd. reported the Eugene Island 142 No. 5 well the second week of February. The straight hole well was drilled to 19,316 ft and encountered more than 80 ft of apparent pay below 17,000 ft. The well is in 48 ft of water. Cabot holds a 10% working interest. Energy Partners said production is expected during the fourth quarter.

Cabot also is a participant in two discoveries at Breton Sound Block 41. The No. 4 well was drilled to 14,544 ft and encountered 119 ft of net pay from the Tex W Sandstone. The No. 5 well was drilled to 14,809 ft and encountered 200 ft of net pay. The wells are expected to be turned in-line in July. Cabot holds a 17.5% working interest in the field's four wells.

The company experienced dry holes at West Cameron 601, Eugene Island 336, and Vermilion 103.

West Virginia
In December, Cabot acquired 53 miles of a 10-in. pipeline from Logan County, WV through its Danville operations, northeast to the industrial corridor of Charleston, WV. Now operational, this pipeline will allow for increased drilling and multiple delivery outlets for the previously pipeline-constrained area.

Cabot said, starting in March, it would drill about 100 wells in the Danville area to use the new pipeline to best advantage.

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