Cabot Oil & Gas Corporation replaced 294 % of production

Cabot Oil & Gas Corporation announced that for the year-end December 31, 1997, the Company replaced 294 % of its production through its ongoing drilling and acquisition efforts. From the drill bit alone, Cabot Oil & Gas Corporation successfully replaced 168 % of production, adding 114.0 bn cfe, while acquisitions replaced 114 %, or 77.4 bn cfe. Positive revisions of 7.3 bn cfe constitute the balance of additions.
Charles P. Siess, Jr., Chairman and Chief Executive Officer stated, "These results continue to verify our ongoing strategy to grow through the drill bit while pursuing synergistic acquisitions. In a time when companies in our industry are struggling to replace reserves, we accomplished this task in a cost efficient manner. Finding costs from drilling, including revisions, totalled $ .67 per mm cfe while finding costs from all sources was $ .64 per mm cfe." Siess added, "This brings our three-year average finding costs to a very competitive level near $ .60 per mm cfe."
After taking into account the 139 bn cfe of reserves that were sold and the 67.7 bn cfe of production during 1997, year-end reserves were 939 bn cfe, less than 1 % below the comparable number at December 31, 1996. "We are pleased that we were able to maintain our level of reserves and, at the same time, improve on the overall quality of our asset base," commented Siess.