Cabot Energy PLC Operational Update (9042U)
October 30 2017 - 3:00AM
UK Regulatory
TIDMCAB
RNS Number : 9042U
Cabot Energy PLC
30 October 2017
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
30 October 2017
Cabot Energy Plc
("Cabot Energy" or "the Company")
Operational update
New corporate presentation
Cabot Energy (AIM: CAB), the AIM quoted oil and gas company
focused on production led growth balanced with high impact
exploration and appraisal opportunities, provides the following
update on the Company's drilling operations in Canada.
16-05 side track well - well tested at significantly higher
rates than forecast
-- The side track of the 16-05 well in the Rainbow area has been
drilled, completed and is on production to the 13-36 facility
through an existing pipeline
-- Following completion of the well, it was tested for a 24 hour
period which saw near virgin reservoir pressure and natural
flow:
- total oil produced during the 24 hour period, while restricted
by a 9.5 millimetre (24/64 inch) choke, was 573 barrels of oil
- the well was producing at a rate of 680 barrels of oil per day
("bopd") by the end of the test period as the well flow cleaned
up
-- The side track was drilled out from the original vertical
well at a subsurface depth of 1,420 metres
- approximately 200 metres of the new deviated well bore
intersected the targeted higher permeability section of the
reservoir and was completed open hole to maximise reservoir
productivity
-- The well is producing under natural flow and, following pump
installation next week, is planned to be produced at a restricted
rate of 200 to 225 bopd to best manage the longer term production
potential of the reservoir
Remaining operations for 2017 - second side track to be drilled
and dual completion well to be brought online
-- The drilling rig used for the 16-05 side track will be moved
to the next planned side track well once the ground has become
sufficiently frozen to enable heavy traffic
- this is expected to occur by early December 2017 and the well
brought into production before the year end, assuming successful
operations
-- The regulatory approval process to inject water down the
13-33 well, which was dual completed as part of the summer work
programme, is almost complete
- this is planned to be equipped and brought into production
during November at a forecast 40 to 50 bopd
-- Planning for the 2018 winter work programme is advanced with
up to four further side track locations being assessed for drilling
in addition to a well workover campaign of up to ten candidates
The Company is on track to achieve its forecast exit production
rate of 800 to 1,000 bopd, of which Cabot Energy owns 75 per
cent.
Keith Bush, Chief Executive Officer of Cabot Energy,
commented:
"The 16-05 side track result exceeded our expectations and
strongly supports our technical view on the potential of the
Canadian assets. The Company's existing Rainbow and Virgo acreage
has many future side track candidates and high grading this
inventory to provide low risk production growth at competitive
investment metrics is the current priority.
"The subsurface and operational work undertaken during 2017 has
greatly advanced our understanding of the Canadian assets and the
true potential of the position, and we look forward to creating
further low cost production growth via our 2018 winter work
programme."
A new corporate presentation will be made available on the
Company's website later today.
- Ends-
For further information please contact:
+44 (0)20 7469
Cabot Energy Plc 2900
Keith Bush, Chief Executive Officer
Nick Morgan, Finance Director
+44 (0)20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Joint Broker
Richard Morrison, Richard Redmayne,
Stephen Wong
+44 (0)20 7448
FirstEnergy Capital LLP 0200
Joint Broker
Jonathan Wright
+44 (0)20 3727
FTI Consulting 1000
Financial PR
Edward Westropp
In Accordance with AIM Rules - Guidance for Mining and Oil &
Gas Companies, the information contained in this announcement has
been reviewed and signed off by the CEO of Cabot Energy, Mr Keith
Bush, who has 25 years' experience as a petroleum engineer. He has
read and approved the technical disclosure in this regulatory
announcement. The technical disclosure in this announcement
complies with the SPE standard.
Note to Editors:
Cabot Energy is an oil and gas company focused on production led
growth. The Company is undertaking a redevelopment and production
project in north west Alberta and has a broader portfolio of
exploration and appraisal opportunities in countries of relatively
low political risk, primarily Italy. Comprehensive information on
Cabot Energy and its oil and gas operations, including press
releases, annual reports and interim reports are available from
Cabot Energy's website: www.cabot-energy.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDLFFVLIALAFID
(END) Dow Jones Newswires
October 30, 2017 03:00 ET (07:00 GMT)
Cabot Energy (LSE:CAB)
Historical Stock Chart
From Apr 2024 to May 2024
Cabot Energy (LSE:CAB)
Historical Stock Chart
From May 2023 to May 2024