Cabot Oil & Gas Corporation
15375 Memorial Drive
Houston, Texas 77036
Telephone: (281) 589-4600
Facsimile: (281) 589-4912
January 27, 1999
Securities & Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
RE: Cabot Oil & Gas Corporation Form 8-K
for the period ended January 20, 1999
Ladies and Gentlemen:
On behalf of Cabot Oil & Gas Corporation, transmitted herewith for filing
under the Securities and Exchange Act of 1934, as amended, is a copy of the
Company's Form 8-K.
This filing has been effected through the Securities and Exchange
Commission's EDGAR electronic filing system.
Please contact the undersigned at (281) 589-4642 with any questions or
statements you may have regarding this filing.
Sincerely,
JILL RIBBECK
Manager, Financial Reporting
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
January 27, 1999
(Date of earliest event reported)
CABOT OIL & GAS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 04-3072771
(State or other Jurisdiction of (IRS Employer
Incorporation of Organization) Identification Number)
Commission file number 1-10447
15375 Memorial Drive, Houston, Texas 77079
(Address of principal executive offices, zip code)
(281) 589-4600
(Registrant's telephone number including area code)
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ITEM 5. OTHER EVENTS
Acquisition of Oil and Gas Producing Properties
Effective December 1, 1998, Cabot Oil & Gas Corporation (the Company)
acquired substantially all of the onshore South Louisiana properties of Oryx
Energy Company for approximately $70 million. Under the terms of the agreement,
Cabot Oil & Gas purchased 10 fields (six operated, four non-operated) covering
34,345 net acres with 68 producing wells. The acquired producing assets are
concentrated in three primary fields, each with a high working interest. These
fields comprise 80% of the value assigned to the transaction. The Company also
acquired a 3-D seismic inventory. Proved reserves acquired total 74 Bcfe.
Management believes that this acquisition provides a geographic fit with
its existing onshore 3-D seismic effort in Terrebonne Parish where the Company
has a 33% interest in a joint exploration play with UPRC covering 95,000 gross
acres. The Company plans to increase production by reworking a portion of the
non-producing wells and commencing an exploratory and development drilling
program.
The three primary fields are Belle Isle in St. Mary Parish, Lake Pelto in
Terrebonne Parish and Chacahoula in Lafourche Parish. There are 160 square miles
of 3-D seismic included with these three primary fields. The other areas
included in the transaction are: Deer Island, Point Au Fer, Gibson and Humphreys
in Terrebonne Parish; West Starks in Calcasieu Parish; Rayne Field in Acadia
Parish; and Beaver Dam Creek in St. Helena Parish.
The purchase was funded by borrowings under the Company's newly expanded
$250 million revolving line of credit with 10 lending institutions.
Additionally, Cabot Oil & Gas intends to continue its asset rationalization
program, selling non-strategic assets when appropriate, in an ongoing effort to
improve the Company's asset base. Proceeds from any sales are expected to be
used to reduce debt.
Forward-Looking Information
The statements regarding future financial performance and results and
market prices and the other statements which are not historical facts contained
in this report are forward-looking statements. The words "expect," "project,"
"estimate," "believe," "anticipate," "intend," "budget," "predict" and similar
expressions are also intended to identify forward-looking statements. Such
statements involve risks and uncertainties, including, but not limited to,
market factors, market prices (including regional basis differentials) of
natural gas and oil, results for future drilling and marketing activity, future
production and costs and other factors detailed herein and in the Company's
other Securities and Exchange Commission filings. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual outcomes may vary materially from those indicated.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Houston, State of Texas,
on the 27th of January 1999.
CABOT OIL & GAS CORPORATION
By: /s/ Henry C. Smyth
Henry C. Smyth, Controller and
Principal Accounting Officer
(Executive Officer Duly Authorized
to Sign on Behalf of the Registrant)
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