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Cabot Reports Record Year-End Reserves, Mostly Gas

Cabot Oil & Gas Corp. last Tuesday reported record proved reserves of 1,202 billion cubic feet equivalent (Bcfe) for the company at the end of 2004, up 5% over last year.

For the entire year of 2004, the Houston-based independent producer said it replaced 172% of its production, nearly all through the drill bit, at a competitive all-in finding cost of $1.67/Mcfe. This compared to an average reserve replacement of 145% of production for the past three years at an all-in finding cost of $1.41/Mcf, according to Cabot Oil.

The producer began 2004 with total proved reserves of 1,142 Bcfe and ended the year with a total of 1,202 of proved reserves, according to Cabot Oil. Of the 1,202 Bcfe, it said a majority of the proved reserves -- 1,134 Bcfe -- was natural gas. The remaining proved reserves included 11,384 thousand barrels (Mbbl) of crude oil and natural gas liquids, down from 12,103 Mbbl at the start of 2004.

Cabot Oil noted that approximately three-fourths, or 909.7 Bcfe, of the total proved reserves were developed, while about one-third (292.6 Bcfe) of the proved reserves were undeveloped.

Approximately half of Cabot Oil proved gas reserves were in the East (547,705 MMcf) at the close of 2004, the company reported. The Rocky Mountains held the second largest amount of proved gas reserves at 225,365 MMcf for the company last year, and was followed by the Midcontinent at 184,116 MMcf and the Gulf Coast at 169,744 MMcf.

As for crude oil and gas liquids, the bulk of Cabot Oil's proved reserves were located in the Gulf Coast (7,888 Mbbl) in 2004 and the Rocky Mountains (2,041 Mbbl), the company noted.

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