Cabot Oil & Gas Provides Operations Update; Announces Addition of a Sixth Rig in the Marcellus Shale

Cabot Oil & Gas Provides Operations Update; Announces Addition of a Sixth Rig
                            in the Marcellus Shale

PR Newswire

HOUSTON, July 24, 2013

HOUSTON, July 24, 2013 /PRNewswire/ -- Cabot Oil & Gas Corporation (NYSE: COG)
today announced the addition of a sixth rig in its Marcellus Shale drilling
program to establish an early start to the 2014 program. "Based on a variety
of factors including our continued well performance improvements, better
visibility on infrastructure projects, our near-term free cash flow profile
and our views on future natural gas demand, we have made the decision to bring
a sixth Marcellus rig into the field," said Dan O. Dinges, Chairman, President
and Chief Executive Officer. "We will spud the first well utilizing the sixth
rig in August and while no impact is expected on 2013 production, as
additional wells will not be turned-in-line until next year, this effort will
provide a positive impact on 2014 production growth." Additionally, the
Company reported continued success from its step-out drilling in the Marcellus
and impressive results from its Eagle Ford drilling program, where its most
recent wells have outperformed the average results for the program.

Marcellus

In the Marcellus Shale, the Company is currently producing 1.2 billion cubic
feet (Bcf) per day of gross natural gas from 226 producing horizontal wells.
"Our current Marcellus daily production rate represents a 15 percent
sequential increase from our first quarter exit rate, which is a result of
several new wells turned-in-line and the recent commissioning of the Central
compressor station at the end of June," stated Dinges. "Though Central's
primary purpose will be as the major discharge station for the Constitution
Pipeline in early 2015, we have seen production gains from our existing wells
as Central has served to lower line pressure in our initial drilling area."

Recent noteworthy wells include:

  oA two-well pad representing a 5 mile step-out to the northeast of the Zick
    area was completed with 27 fracture stimulation (frac) stages with an
    initial production (IP) rate of 34.8 Mmcf per day and an average 30-day
    production rate of 28.1 Mmcf per day.
  oA two-well pad representing a 2 mile step-out to the north of the Zick
    area was completed with 37 frac stages with an IP rate of 51.2 Mmcf per
    day and an average 30-day production rate of 43.6 Mmcf per day.

Eagle Ford

Cabot operated one rig in the Eagle Ford during the second quarter and
turned-in-line four wells. Cabot's last six Eagle Ford wells with at least 30
days of production data have averaged a 24-hour peak rate of approximately 900
barrels of oil equivalent (Boe) per day and an average 30-day rate of
approximately 570 Boe per day. One noteworthy well is Cabot's first extended
lateral well that was completed with a lateral length more than 8,000 feet.
The well had a 24-hour peak rate of approximately 1,130 Boe per day and is
currently producing approximately 1,100 Boe per day after 120 days of
production. "We continue to see improvements in well performance across our
Eagle Ford program while also driving down well costs, leading to further
increases in returns," explained Dinges. "Based on these results, we are
bringing in a second rig at the end of this month that will focus solely on
pad drilling, which we anticipate will result in cost savings of more than
$500,000 for a typical well."

Guidance

The Company has revised its 2013 production growth guidance range, increasing
the low end to 44 percent and the high end to 54 percent. This reflects the
Company's confidence in the timing of the continued infrastructure build-out
in the Marcellus Shale during the second half of the year. Separately, the
Company increased its 2013 program spending guidance to a range of $1.1 to
$1.2 billion to reflect an increase in estimated net wells drilled for the
year due to this rig addition. The Company now expects to drill 155 to 165 net
wells in 2013, up from the previous guidance of 130 to 145 net wells. This
includes an increase in Marcellus wells drilled from 85 to 100 net wells.
"Even with this increase in drilling activity, we expect our capital spending
to approximate cash flow for the year based on current commodity price
expectations," affirmed Dinges.

Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading
independent natural gas producer, with its entire resource base located in the
continental United States. For additional information, visit the Company's
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.

FOR MORE INFORMATION CONTACT
Matt Kerin (281) 589-4642

SOURCE Cabot Oil & Gas Corporation

Website: http://www.cabotog.com