CABOT OIL & GAS PROVIDES 2001 CAPITAL PROGRAM UPDATE

             IMPACT TO FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS

     Houston, January 22, 2002 - Cabot Oil & Gas Corporation (NYSE:COG) today
announced the results of its fourth quarter exploration drilling program with
mixed results. The Company confirmed its new exploration play at Redfish Bay in
south Texas with three initial successes based on log analysis. Cabot also
experienced another success on CL&F, two dry holes in the West and is waiting on
results from two additional exploration wells.

     Cabot's first three wildcats in Redfish Bay encountered log pay in the
anticipated intervals. Poblano, Serrano and Habanero logged 96 feet, 34 feet and
33 feet of net pay, respectively. Completion activity is underway on each
prospect with a fourth well currently drilling. Production is anticipated in the
second quarter with Cabot having an average working interest of 70%. "We are
pleased with the initial success of our Redfish Bay drilling and we expect to
initiate additional drilling in the area during 2002," said Ray Seegmiller,
Chairman and Chief Executive Officer.

     At Beignet on the CL&F acreage (33% working interest), the Company logged
32 feet of net pay in the Tex W sand; however, a deep targeted Cib Op formation
was not productive. "While we are somewhat disappointed with this, we have
experienced phenomenal success in south Louisiana overall since the inception of
our exploration drilling program including 13 successful wells in 17 attempts
resulting in over 90 Bcfe of reserves," commented Seegmiller. "We will take what
we have learned here and apply it to our current inventory of 14 exploration
prospects in the area."


CABOT OIL & GAS / 2

     In the West, Cabot experienced dry holes at the Hell's Half Acre prospect
(18% working interest) in the Boone Dome project in Wyoming and the Sawtooth
prospect (95% working interest) in the Paradox basin. Extensive flow testing
from several formations indicated a non-commercial well at Sawtooth.

     "In these instances we are going to have to reassess the merits of the
look-alike prospects in these areas before proceeding with further exploration
drilling," said Seegmiller. "This evaluation will not affect the 2002 capital
program since with the current outlook for depressed natural gas prices, our
capital budget (excluding acquisitions) has been reduced from approximately $205
million in 2001 to about   $100 million for 2002."

FINANCIAL IMPACT

     Guidelines require that costs incurred on any exploration well determined
to be dry before filing the company's year-end and quarterly reports with the
Securities and Exchange Commission must be included in the recorded results for
the reported period. These two dry holes combined with other fourth quarter
exploration activity, including seismic acquisition, will give Cabot $24 million
of exploration expense for the quarter and $64 million for the year 2001. Total
exploration expense for the fourth quarter consists primarily of $12 million for
seismic and $9 million for dry holes.

     "With commodity prices falling during the second half of last year, we saw
opportunities to acquire additional seismic that potentially provide long term
benefits for Cabot," stated Seegmiller. "Our 3-D database now stands at 9,800
square miles, up from 2,200 at the start of the year, with much of this increase
occurring as the result of investments in December."

     The remaining wells which may have a 2001 financial impact requiring
inclusion in the 2001 financial statements are the Speidel well in Appalachia
and the Impac well in south Louisiana. The Speidel well is the deep Trenton
exploration well that was delayed while waiting for a rig with 12,000 feet
capability. The well is currently under evaluation and testing.


CABOT OIL & GAS / 3

     After further analysis of the well log in conjunction with the seismic
data, the Impac well was determined to be short of its targeted horizon and is
now drilling an incremental 1,000 feet to 20,500 feet. "We are cautious in our
outlook since these wells had an average predrill probability of success of only
15%," said Seegmiller. If Cabot determines these wells are dry prior to filing
its SEC Form 10-K, the Company would be required to expense the cost incurred on
the wells through December 31, 2001, which totals $7.7 million pretax. This
translates into $.16 per share of total exposure.

     Seegmiller added, "Cabot normally does not have this many high risk, high
potential wells drilling at one time. However, due to the difficult drilling
environment experienced with these wells, each reached total depth almost
simultaneously."

     Cabot also announced that as part of its year-end review, one field
(Starpath) failed its impairment test resulting in a one-time charge of $5.2
million pretax to fourth quarter performance. Commenting on the impairment
Seegmiller said, "This field was originally a south Texas exploration play
looking for the deep Wilcox formation. However, after only shallow success, we
have elected to stop further investment in the field."

     Cabot Oil & Gas Corporation will release 2001 year-end and fourth quarter
results Thursday evening January 24, 2002. A live webcast of the teleconference
is available on Friday, January 25, 2002, at 9:30 AM EST at www.cabotog.com.

     Cabot Oil & Gas Corporation, headquartered in Houston, Texas, is a leading
domestic independent natural gas producer and marketer with substantial
interests in the onshore Texas and Louisiana Gulf Coast, Rocky Mountains,
Appalachia and Mid-Continent. 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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