TIDMCAB
RNS Number : 0487H
Cabot Energy PLC
08 March 2018
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
Cabot Energy Plc
("Cabot Energy", the "Group" or the "Company")
Drilling operations update
Cabot Energy (AIM: CAB), the AIM quoted oil and gas company
focused on production led growth, provides an update on the
Company's first quarter winter work programme in Alberta, Canada,
which comprises the drilling of four new sidetrack wells.
The work programme is ahead of schedule with three wells
successfully drilled and tested and the fourth well scheduled to
finish drilling shortly.
Summary results table
Sidetrack Test rate Expected initial
well (equivalent production rate
bopd) (bopd)
---------- ------------- -----------------
06-08 570 160
---------- ------------- -----------------
15-31 100 100
---------- ------------- -----------------
10-06 626 160
---------- ------------- -----------------
03-07 Currently drilling
---------- --------------------------------
06-08 sidetrack well
-- The well targeted a high porosity area within the reef using 3D seismic attribute analysis
-- Evidence of this high porosity was seen during drilling
operations and confirmed by the well test result with an equivalent
production rate of 570 bopd
-- Following completion, the well was put into production and is
currently producing at a restricted rate of approximately 160 bopd
to best manage the long term performance of the reservoir
15-31 sidetrack well
-- Following drilling, the well was tested over a short period
at an equivalent rate of 100 bopd
-- During the test the overall fluid production rate was 300
barrels per day and the water cut was continuously reducing
-- Technical analysis indicated that reef porosity would be less
than the other wells in the programme, but would still produce at a
significant rate and the result supports that analysis
-- The well is expected to produce at an initial rate of 100 bopd with a low water cut
10-06 sidetrack well
-- The original vertical well drilled by the previous operator
in 2009 produced little oil from the reef due to completion
issues
-- The new 10-06 sidetrack well drilled 325 metres in the
reservoir and tested at an equivalent rate of 626 bopd while still
cleaning up
-- Following completion, the well is expected to be put on
production at an initial rate of 160 bopd to manage the long term
reservoir performance
03-07 - currently drilling
-- The 03-07 well has been drilled out of the existing well bore
and is currently drilling in the reservoir
-- It is expected that drilling operations will finish within a
week, after which the well will be tested and, if successful, put
into production
All four wells are tied in via existing pipelines to the
Company's 13-36 processing and sales facility. An operations and
production update will be provided in April 2018 after the winter
work programme completes.
Keith Bush, Chief Executive Officer of Cabot Energy,
commented:
"The winter work programme is progressing well and each
successful sidetrack well supports our technical approach to the
redevelopment of the Rainbow region through the use of 3D seismic
to identify the properties within each reef and target productive
zones. With the completion of the fourth well likely to occur in
the coming weeks, the programme will complete ahead of schedule and
before the annual spring thaw, which is a credit to our operational
team in Canada.
"These sidetrack wells provide excellent data reference points
as we look to replicate this success in the summer programme and
plan the ongoing development of production and reserves in the
region next year."
For further information please contact:
+44 (0)20
Cabot Energy Plc 7469 2900
Keith Bush, Chief Executive Officer
Nick Morgan, Finance Director
+44 (0)20
SP Angel Corporate Finance LLP 3470 0470
Nominated Adviser and Joint Broker
Richard Morrison, Richard Redmayne,
Charlie Bouverat
+44 (0)20
GMP FirstEnergy LLP 7448 0200
Joint Broker
Jonathan Wright, David van Erp
+44 (0)20
FTI Consulting 3727 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 26 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 building production from a redevelopment
project in north west Alberta, Canada, and has a portfolio of
exploration and appraisal opportunities in 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
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