Cabot Oil & Gas Announces Canadian Sale
April 14 2009 - 12:00PM
PR Newswire (US)
HOUSTON, April 14 /PRNewswire-FirstCall/ -- Cabot Oil & Gas
Corporation (NYSE:COG) announced today a definitive agreement to
sell its Canadian operations to a private Canadian company for a
combination of cash and stock. Total consideration (denominated in
Canadian dollars) for this transaction is CAD$78 million in cash,
along with CAD$24 million in new equity. The sale is expected to
close on, or before, May 1, 2009 and is subject to due diligence
and other customary closing conditions. "We announced our intent in
February to explore the market for a Canadian asset sale, and we
are pleased that in this market an agreement was reached," said Dan
O. Dinges, Chairman, President and CEO. "Once closed, this further
focuses Cabot's regional extent and provides capital to reduce our
debt position." At year end 2008, Cabot's reserve report included
40.4 Bcfe of proved reserves in Canada. "This figure was limited to
some extent due to our plans to suspend capital investments in
Canada for 2009," commented Dinges. "Over the last several years,
Cabot had assembled a nice asset package in Canada, but with our
recent success in other basins, Canada became less strategic,
long-term." The effective date of the sale is April 1, 2009 and
therefore does not impact first quarter production expectations.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is
a leading independent natural gas producer with substantial
interests in the Gulf Coast, including Texas and Louisiana; the
West, with the Rocky Mountains and Mid-Continent; the East and in
Canada. For additional information, visit the Company's Internet
homepage at http://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. DATASOURCE: Cabot Oil
& Gas Corporation CONTACT: Scott Schroeder of Cabot Oil &
Gas Corporation, +1-281-589-4993 Web Site: http://www.cabotog.com/
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