Cabot to Sell Canadian Operations for CAD$78 Million Cash and CAD$24 Million Equity

HOUSTON-- 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 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.

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