HOUSTON, April 28 /PRNewswire-FirstCall/ -- Cabot Oil & Gas Corporation (NYSE: COG) today announced another successful horizontal well, current production levels and ongoing horizontal well statistics in its Pennsylvania Marcellus effort, along with disclosing updated plans for East Texas.

Marcellus

Cabot's most recent horizontal completion, the Heitzman #1H, was completed with a four-stage frac and flowed to sales in a 24-hour test at an initial rate of 9.0 Mmcf per day. Presently the well has been online five days, and production has averaged 8.8 Mmcf per day during that period.

"This is our best initial rate to date and provides us further confirmation of the prolific nature of this area for the Marcellus," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "Additionally, production from our first three reported horizontals continues to hold up well."

The first horizontal well, the Ely 6H (came on at 6.4 Mmcf per day) and is producing 4.3 Mmcf per day after 105 days on line. The Black 1H (initial 24-hour sales rate of 8.8 Mmcf per day) had a 30-day average rate of 8.3 Mmcf per day and is producing 8.0 Mmcf per day after 60 days on line. The Black #2H, after only a four-stage frac, flowed to sales at an initial rate of 8.3 Mmcf per day, with a 30-day rate of 5.6 Mmcf per day and is producing 4.1 Mmcf per day after 60 days.

"Presently, these four horizontals together are producing over 25 Mmcf per day with our field producing at our current sales capacity of approximately 34 Mmcf per day from these four horizontals and 13 vertical wells," stated Dinges. "We continue to make progress on increasing our sales capacity with the installation of additional compression and dehydration. Capacity should increase to approximately 50 to 55 Mmcf per day by mid-May and up to 85 to 90 Mmcf per day by the end of June, 2009." Cabot has also successfully negotiated a second compressor site for additional capacity and will be building this site over the summer. Plans call for first gas sales from this site in early 2010.

To date, Cabot has drilled 28 wells in Pennsylvania, eight are horizontals with laterals stretching up to 4000'. There are six rigs operating in Pennsylvania, drilling three horizontal and three vertical wells at the present time. Three horizontal and three vertical wells are waiting on completion, with one horizontal well currently flowing back.

East Texas

Cabot's East Texas program continues to adjust to the new activity around County Line. The Company remains committed to the $475 million program for 2009, 47 percent of which is for East Texas. The Company has recently adjusted its drilling schedule to include a horizontal Haynesville Lime well at Minden and a horizontal Haynesville Shale well at County Line. "These wells will further delineate the lime and the shale," commented Dinges. "The horizontal shale well is designed to exploit the successful test of the vertical Von Goetz #3 well."

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; and in the East. 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.

SOURCE Cabot Oil & Gas Corporation

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