Cabot Closes Office, Lays Off 15
Cabot Oil & Gas announced it will close its Pittsburgh
office Aug. 31 as part of a "strategic repositioning" that included
the sale of non-core Appalachian properties to Enervest Management
Co. for $46.2 million last September. About 15 jobs will be
eliminated as a result of the action. The remaining positions will
be transferred to existing offices in Charleston, WV, and Houston.
"Since 1997, Cabot Oil & Gas has sold over 200 Bcfe of
reserves in Pennsylvania and northern West Virginia. The
Appalachian drilling effort will now be centered around our large
acreage position in southern West Virginia and to a lesser extent
in southwestern Pennsylvania," said CEO Ray Seegmiller. "We are not
exiting Appalachia. We are simply reducing operating expenses.
"In this competitive marketplace we continue to look for ways to
improve our margins. We anticipate over $1 million in annual
savings from this consolidation. However, Cabot will realize a
one-time charge totaling about $1 million for severance and
relocation costs split between the second and third quarters of
The closing resulted in the resignations of two officers, James
M. Trimble, senior vice president and John B. Lawman, vice
president and regional manager.
In total, Cabot sold 59.5 Bcfe of proved reserves in the
Appalachian region last year. The largest package divested was the
Clarksburg properties, located in northern West Virginia, which
accounted for a total of 791 wells, producing a net 8.7 MMcfe/d.
These reserves were not contiguous to Cabot's Cranberry pipeline
system, and high quality drilling opportunities were limited, the
company said at the time.
©Copyright 2000 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.