Cabot Energy PLC Q1 2019 Financial, Operational and Trading Update (0379Z)
May 15 2019 - 2:01AM
UK Regulatory
TIDMCAB
RNS Number : 0379Z
Cabot Energy PLC
15 May 2019
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. With the publication of this announcement, this
information is now considered to be in the public domain.
15 May 2019
Cabot Energy Plc
("Cabot Energy", the "Group" or the "Company")
Q1 2019 Financial, Operational and Trading Update
Cabot Energy (AIM: CAB), the AIM quoted oil and gas company
focussed on creating predictable production growth in Canada,
provides an update on the Company's financial position, operations
and trading for the quarter ended 31 March 2019.
Group Production and Sales
-- Revenue for Q1 2019 of US$2.0 million (Q1 2018: US$3.4 million)
-- Average Q1 2019 gross production of 511 barrels of oil per day ("bopd") (Q1 2018: 725 bopd)
-- Average Q1 2019 crude oil sales price of approximately US$44
per barrel (Q1 2018: US$51) and an average Edmonton Light Oil
("Edmonton") price discount to the West Texas Intermediate ("WTI")
price of approximately 9%, reflecting the restoration of the
historic price differential
-- At current crude oil sales prices, Canadian operations remain
cash flow positive, including the continuing settlement of overdue
Canadian trade creditors with whom the Group secured voluntary
binding agreements in January 2019
Financial Update
-- In March 2019, the Company successfully raised GBP2.53
million (US$3.35 million) in gross proceeds from a subscription and
open offer which, together with the sustained improvement in the
Edmonton price since February 2019, will provide sufficient working
capital for the Group through to the end of May 2019
-- Unaudited Group cash on the balance sheet of US$0.3 million
as at 13 May 2019 (31 December 2018: US$0.9 million)
-- Cabot Energy has engaged a specialist financial advisory firm
to source Canada asset-level debt finance for the development
drilling of the Company's proven and probable reserves in Canada,
commencing with a fully funded 2019 summer work programme
-- While management remain confident that the debt finance
discussions will result in a successful outcome for the Group, no
debt commitments have yet been secured
-- Supportive majority shareholder, High Power Petroleum
("H2P"), has indicated its willingness to provide limited
short-term funding, pending the satisfactory progression of the
ongoing debt finance discussions
Scott Aitken, Chief Executive Officer, said: "The first quarter
of 2019 has seen the Edmonton oil price rebound strongly towards
its historic price differential with WTI. Crude sales prices were
therefore significantly above our planning assumption and this,
alongside tight cost control and anticipated short-term funding
from H2P, has provided us with a longer period to negotiate the
debt funding for the planned drilling and workover operations in
the summer. We look forward to updating the market as soon as
practicable, although no assurances can be given at this stage that
the debt financing discussions will result in a successful outcome
for the Group."
Enquiries:
Cabot Energy Plc +44 (0)20 7469 2900
Scott Aitken, CEO
Petro Mychalkiw, CFO
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
David Hignell, Richard Hail, Richard
Redmayne
GMP FirstEnergy +44 (0)20 7448 0200
Joint Broker
Jonathan Wright
Luther Pendragon +44 (0)20 7618 9100
Financial PR
Harry Chathli, Alexis Gore, Joe Quinlan
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 CTO of Cabot Energy, Mr
Campbell Airlie, who has over 35 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 (AIM: CAB) is an oil and gas company focussed on
creating predictable production growth in Canada balanced with high
impact exploration and appraisal opportunities. 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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