Cabot Oil & Gas announced it will close its Pittsburghoffice Aug. 31 as part of a “strategic repositioning” that includedthe sale of non-core Appalachian properties to Enervest ManagementCo. for $46.2 million last September. About 15 jobs will beeliminated as a result of the action. The remaining positions willbe transferred to existing offices in Charleston, WV, and Houston.

“Since 1997, Cabot Oil & Gas has sold over 200 Bcfe ofreserves in Pennsylvania and northern West Virginia. TheAppalachian drilling effort will now be centered around our largeacreage position in southern West Virginia and to a lesser extentin southwestern Pennsylvania,” said CEO Ray Seegmiller. “We are notexiting Appalachia. We are simply reducing operating expenses.

“In this competitive marketplace we continue to look for ways toimprove our margins. We anticipate over $1 million in annualsavings from this consolidation. However, Cabot will realize aone-time charge totaling about $1 million for severance andrelocation costs split between the second and third quarters of2000.”

The closing resulted in the resignations of two officers, JamesM. Trimble, senior vice president and John B. Lawman, vicepresident and regional manager.

In total, Cabot sold 59.5 Bcfe of proved reserves in theAppalachian region last year. The largest package divested was theClarksburg properties, located in northern West Virginia, whichaccounted for a total of 791 wells, producing a net 8.7 MMcfe/d.These reserves were not contiguous to Cabot’s Cranberry pipelinesystem, and high quality drilling opportunities were limited, thecompany said at the time.

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