Cabot Energy Share Discussion Threads

[imperial3] 10/4/2019 16:01

That about sums it up.Good post wanderingmariner.

[wanderingmariner] 10/4/2019 13:54

The business is focussing on staying alive. Canadian acreage will generate revenue but it's all about keeping the costs minimal now, not that that shouldn't have been the case in the first place. All it will take is for one of those ageing pipelines to go pop or they have a late freeze and those revenues will crash and costs will go through the roof.

There is no plan B in the portfolio, UK & Netherlands gone long ago, Australia, which was a red herring, now gone and Italy not worth it anymore unless you have very deep pockets. Talk about all your eggs in one basket.

There needs to be a plan B to survive well into the future and that means looking at other areas of the globe for assets that can provide short to mid term returns.

If you've been in this for the last ten years then you must have torn all of your hair out by now. Such a waste of potential and cash.

[investoroilandgas] 10/4/2019 13:22

Scott Aitken confirmed today that potential debt providers include third parties & existing shareholders, a shame Scott did not mention that oil prices had recovered to $60 per barrel.

The more potential debt providers the better IMO.

[investoroilandgas] 10/4/2019 11:30

103,427 CAB shares traded - Price 11.75p + 23.68% - one of today's highest risers.
Suggests that there is a limited amount of shares in the market.

[investoroilandgas] 10/4/2019 08:57

Further to the announcements of 1 March 2019 and 1 April 2019, Cabot Energy (AIM: CAB), the AIM quoted oil and gas company focussed on creating predictable production growth in Canada, announces that discussions with potential providers of finance (third parties and existing shareholders) at both the asset level and the Group level are ongoing and if successful, may require until the end of H1 2019. The Company will provide details of the financing arrangements at the conclusion of these talks. Consequently, the Company will now issue its preliminary results for the year ended 31 December 2018 in June 2019 and hold its AGM in late June 2019.

Extending talks with "potential finance providers" until the end of H1 2019 is fine with me as it shows that CAB is not desperate for cash, things have stabilised because of oil prices. My hope is that Scott Aitken secures a debt deal which negates the need to raise further equity.

[investoroilandgas] 09/4/2019 08:27

Cabot Energy (AIM: CAB), the AIM quoted oil and gas company focussed on creating predictable production growth in Canada, announces that Ouro Preto Resources Pty Ltd, the Company's wholly-owned subsidiary, has reached an agreement with The Department for Energy and Mining of the Government of South Australia ("DEM") to relinquish its PEL 629 onshore exploration licence in the Otway Basin, South Australia (the "Licence").

The Company has received confirmation from DEM that it will be granted permission to vary out current commitments of its second year PEL 629 work programme for a nominal fee. The formal application for variation and relinquishment of the Licence has been submitted and the relinquishment is expected to take immediate effect. The Company will not incur any further costs or penalties associated with the outstanding work programme.

The Licence had been in suspension since June 2014 to allow the Company to carry out further technical work and evaluation. As at 31 December 2018, the Net Book Value was zero, with the majority of the asset impairment (USD $970,000) booked in 2015.

Scott Aitken, CEO of Cabot Energy, commented: "We are grateful to The Department for Energy and Mining for agreeing to a low-cost relinquishment of this licence in South Australia. The management team believes it is responsible practice to focus financial and operational resources on delivering value from the Company's core assets. This means prioritising our Canadian land position, which has a production facility capacity of up to 10,000 barrels of oil per day, along with our highly unique, leading licence position in Italy with 1 billion barrels of identified prospects and discoveries."

[investoroilandgas] 02/4/2019 10:05

There is a positive to the five largest shareholders owning 88.11% of CAB shares as there are a very limited amount(c.11%)of shares held by PI's. If Scott Aitken was to secure a debt agreement on favourable terms and there was no need to raise extra equity, this would transform Cabot's share price.

GLA

[investoroilandgas] 01/4/2019 16:59

High Power Petroleum have allowed Mr. Krafft & Northeastern Oilfield Services to own just under 10% of CAB shares, furthermore City Financial Investment (shares now owned by Garraway Capital Management) bought in to the recent subscription to avoid dilution. It would therefore appear that HPP have actively encouraged new shareholders to come on to the Share Register & for existing shareholders to buy Open Offer shares.

The interesting thing for me in Scott Aitken's RNS quote is :-

"As previously announced, this may involve raising funds at an asset level - an option which has been made more attractive by the restoration to historic levels of the Edmonton Light Oil selling price - in addition to approaching the market for a further equity raise if needed".

It is not absolutely certain that Cabot will need to raise further equity, my hope is that Scott Aitken will secure debt on favourable terms to start a new drilling campaign this year.

[bionicdog] 01/4/2019 16:43

Max the prof is making fortunes on MTRO . . . probably.

[bionicdog] 01/4/2019 16:28

Bear in mind that CFI went under

[imperial3] 01/4/2019 15:45

It looks to me that Garraway Capital Management have acquired the 14.5% stake that the City Financial Investment Company previously had.Presumably,they have confidence for the future of the company.

[maxk] 01/4/2019 15:20

Oi dog, I'm surprised your mate the Prof hasn't shown up here, cos there is obviously stuff going on in the background.

[nutty1] 01/4/2019 14:54

"High Power Petroleum are not in my opinion going to let this ship sink....."

Course not...but I fear they'll be the only ones sailing in it.

[danny baker] 01/4/2019 14:32

A trading update and only 2,000 shares traded. As has already been pointed out almost 90% of the shares are now held by the significant holders who've declared their positions. The shares are completely unmarketable and the AIM facility is pointless. I reckon that the next step will be to take this off AIM to save the annual expenses of a NOMAD and broker.

[investoroilandgas] 01/4/2019 09:24

Answers to those questions should be forthcoming during the next 30 days.
Scott Aitken & his team are turning around this company, the debt discussions are ongoing, either way High Power Petroleum are not in my opinion going to let this ship sink.

Looking forward to the next update.

[nutty1] 01/4/2019 09:15

You missed the 1st paragraph in Mr Aitken's statement:

“We are pleased to have significantly increased our average annual gross production in Canada by 71% to 703 bopd. However, as became apparent during 2018, poor historic operational and financial planning and control meant that this increased production was accompanied by cost overruns.”

Now who was responsible for the Canada cost overruns? Are these the creditors to whom Cabot were in debt to? Or was it Mr Cadieux, who now owns 4.5% of the company?

[investoroilandgas] 01/4/2019 08:10

"We believe Cabot Energy is now in a stronger operational position to recommence drilling and unlock the inherent value of its production and development assets, subject to the necessary funding being in place. During 2018, the technical team carried out extensive subsurface analysis, resulting in significant upgrades to our Canadian resources and reserves, increasing gross 2P reserves by 26% to 3.6 mmboe, and increasing gross reserves and resources by 339% to 42.2 mmboe.

"The Board is in the process of assessing the most effective financing options to provide additional working capital, recommence drilling and efficiently grow production. As previously announced, this may involve raising funds at an asset level - an option which has been made more attractive by the restoration to historic levels of the Edmonton Light Oil selling price - in addition to approaching the market for a further equity raise if needed. Although no guarantees can be given that such funds will be readily available or available on terms that are favourable to the Company, we are encouraged by the discussions we have had to date and look forward to providing shareholders with further updates regarding the Group's financial position as soon as practicable." Scott Aitken - CEO

[investoroilandgas] 29/3/2019 09:17

Five shareholders now own 88.11% of CAB shares, High Power Petroleum is the largest shareholder with 60.10%.

[investoroilandgas] 28/3/2019 13:37

hxxps://financefeeds.com/fca-confirms-city-financial-investment-company-limited-is-in-administration/

[investoroilandgas] 28/3/2019 12:52

City Financial Investment Company Ltd have sold their 13.45% stake in CAB, strange given that they recently participated in the recent subscription @ 10p per share.
13.45% of the entire share issue of CAB has been sold to whom? Another RNS expected shortly.

[nutty1] 28/3/2019 08:43

I posted back in February in relation to the Open Offer that:

"None of the money raised will be going into the ground. Its all for paying off creditors (can anyone enlighten me as to who they are?); legal fees, corporate expenses, deferred salaries.."

I would still like to know who the Creditors were that needed paying off.

Does anyone know?

[investoroilandgas] 28/3/2019 07:54

Looking at the dates when Oilfield Services Ltd crossed the threshold, it is the same date as the announcements stating holdings of the other the large CAB shareholders i.e. 6 March 2019. Why has it taken Oilfield Services until 26 March 2019 to notify the issuer?

Interesting.

[investoroilandgas] 27/3/2019 21:41

Yes - I could take a 55% loss by selling my Cabot Shares & then top up my holdings in Serica Energy but I hope that Scott Aitken will turn Cabot Energy around. High Power Petroleum wrote the largest cheque during the last placement, that suggests to me that they want to keep this ship afloat.

I'm encouraged by Mr. Krafft and Northeastern Oilfield Services Ltd recently acquiring significant stakes in Cabot Energy.


Good luck to all Cabot shareholders.

[maxk] 27/3/2019 21:25

Have you any other choice?