The chairman and CEO of Houston-based Cabot Oil & Gas Corp.yesterday said his company had added “credibility to our southLouisiana exploration effort” by successfully completing its firstoperated exploration well on the Continental Land & Fur(CL&F) acreage in Terrebonne Parish, LA. Ray Seegmiller praisedthe success of the well, located on Cabot’s Augen prospect. TheCL&F No. 58-2 well drilled to a total depth of 13,100 feet andcompleted in 63 net feet of Bourg Sand. “We knew when we started2000 our drilling program in the Gulf Coast had significantpotential as evidenced by this most recent discovery,” Seegmillersaid.

The well, which should be turned in-line by late July, tested ata rate of 15.4 MMcf/d of natural gas, 108 b/d of oil and no waterwith a flowing tubing pressure of 9,300 psi on 21/64-inch choke.The initial shut-in pressure is 9,600 psi.

Cabot has a 50% working interest and a 35% net revenue interestin the well, while Palace Exploration Co. owns the balance of theworking interest.

In response to strong gas prices and the successful drillingefforts, Cabot’s board of directors authorized an additional $16million in capital expenditures for the 2000 budget year. If used,this would bring the full-year capital program to $110 million, andwould allow for further debt repayment based on current anticipatedlevels for discretionary cash flow.

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