Cabot Energy Share Discussion Threads

[nutty1] 06/2/2022 21:26

hxxp://hppetroleum.com/assets/canada/

This is where Cabot's Canadian assets ended up..

[nutty1] 17/1/2021 18:52

And so it finally ends..

hxxps://www.assetmatch.com/app/OurCompanies/CompanyProfile?companyId=1513

A sad ending to a story with a good dollop of 'what ifs?'..

[nutty1] 29/7/2020 22:07

For anyone interested, this was posted yesterday on the Asset Match page for Cabot. At face value it looks like Cabot is up to its neck in the brown stuff, but the cynic in me wonders if its H2P getting ready to sweep the last remaining private shareholders away.



"28 July 2020
Dear shareholder

Financial update for Cabot Energy Ltd (the “Company”;) and its subsidiaries (together the “Group”)

I would like to provide a further update on the Group’s current financial position in light of the impact of the Covid-19 pandemic on the Group’s operations and financial position.

I am pleased to inform you that we continue to have no reported cases of the Covid-19 virus amongst our staff across all locations.

H2P Loan Facility
Thank you to all shareholders who responded to my previous letter dated 19 June 2020 regarding the further loan facility offered by the Company’s majority shareholder High Power Petroleum LLC (“H2P”). This new facility is on similar terms
to the previous H2P loan facility which was approved by the Company's previous non-executive board in December 2019, updated for current market valuations and secured loan interest rates (the “H2P Loan Facility”).

The H2P Loan Facility was duly approved by the Company’s shareholders and to date, US$3.75 million has been advanced by H2P under both the H2P Facility and the previous loan facility. Shareholders should note, however, that further loan advances under the H2P Loan Facility are uncommitted and at the discretion of H2P, dependent in large part upon the Company’s wholly owned Canadian subsidiary Cabot Energy Inc. (“Cabot Inc.”) reaching a satisfactory voluntary arrangement with its creditors in order to maintain business continuity.

Canada
In my last letter I highlighted the urgent need for Cabot Inc. to reach a voluntary arrangement with its creditors during this period of uncertainty and reduced demand for oil. To this end the Board of Cabot Inc. engaged Grant Thornton in Canada in May 2020, however a satisfactory voluntary arrangement was not achieved, placing Cabot Inc. in a precarious financial position.

On 30 June 2020 the Board of Cabot Inc. filed a Notice of Intention to Make a Proposal pursuant to Part III, Division I of the Bankruptcy and Insolvency Act, R.S.C., 1985, c. B-3, and in so doing placed the Company under court protection in
order to stay any further creditor actions against Cabot Inc. in Canada whilst it restructures its financial affairs, including the restructuring of its overdue trade creditor obligations and securing interim financing. On 27 July the Court of Queen's Bench of Alberta granted a stay period until September 11 and the approval of a committed Debtor-In-Possession loan facility from H2P of CAD$645,000. The Company is reasonably confident that, during this stay period and with the
committed interim financing from H2P, Cabot Inc. can reach a satisfactory outcome with its creditors in order for it to continue as a going concern.

However, until such time as the formal creditor process is concluded and the price of oil recovers further, the Board believes that there remains material uncertainty as to the Group's ability to continue as a going concern.

Cabot Inc. continues to receive minor assistance under certain Alberta provincial government business support and payroll saving programmes and we are also continuing to actively investigate Canadian government loan schemes;
however, their availability continues to remain uncertain at this time.


The Board remains focussed on navigating the Group through these unprecedented times and I will continue to keep you appraised as to the position and prospects of the Group when the Board has further clarity.

I trust that you and your families remain safe in this COVID-19 environment.

Yours Sincerely,

Scott H Aitken
Director & Chief Executive Officer"

[investoroilandgas] 13/7/2020 11:32

I sold out prior to Cab delisting, took my losses & vowed to never forget Scott Aitken & Co.

[nutty1] 12/7/2020 22:53

The way it disappeared from view was not good and the way shareholders were diluted to oblivion still rankles with me.

I occasionally looked at the CAB website for news, but it hasn't been updated since they left AIM in Dec 2019. What I didn't realise was that all the latest company information/news is on their page on the 'Asset Match' website.

I'm sure other folk have realised this, but in case there are other people who have a masochistic fascination with what happened to their company and their money, here is the link:

hxxps://www.assetmatch.com/app/OurCompanies/CompanyProfile?companyId=1513

[nutty1] 12/7/2020 21:26

Anyone still interested in these?..

[nutty1] 29/11/2019 12:43

Are there any m'learned friends out there who know anything about "Unfair Prejudice"?

[nutty1] 19/11/2019 15:40

One would assume that McDaniels are a reputable company with an established track record for probity and professionalism and that they would undertake a robust assessment of reserves using type wells for the Rainbow/Keg River play with defendable costs, production forecasts and cums/well.

In relation to abandonment/restatement costs, McDaniels have made a provision for these in the report, and the NPV10 should really take these into account.

If the reinstatement costs are far, far higher than prognosed (and I've heard the Apache story too..), then the reserves report might make good toilet paper..

I would point out though, that at the time of the Whitewash when H2P were allowed to take >50% of Cabot, they concurrently sold their share of H2P UK (the owner of 25% of the Canadian assets) back to Cabot, giving Cabot 100% of Canada. The consideration for this sale was based on a McDaniels reserve report.

H2P were happy to use the reserves report when they were a seller and evidently attach credence to it.

They should be happy to use it now.

It may be a rhetorical question, but what do you think Mr Dewar's answer would be if he was offered $2MM today for the H2P holding in Cabot?

If the answer is 'yes', then the company really is in the brown stuff and we can use the reserve report to wipe our bottoms.

If the answer is 'no' Cabot shareholders are being taken to the cleaners.

I suspect the answer will be "blah...blah..fiduciary duty..blah...blah..talk to our advisers...blah..blah..due diligence...blah blah..Is it time for lunch yet?"

[wanderingmariner] 19/11/2019 13:28

It's alright banging on about reserves but what are the historic recovery factors in rainbow? If they are low then it means jack.

These wells are renowned for slowing down quick production wise with need for further money to keep them producing at low rates. Oh and let's not forget the massive elephant in the room of reinstatement costs.

Apache were trying to get out for years, why do you think that was?

[nutty1] 19/11/2019 13:03

The Krafft-meister has grabbed another 2.5%...

He is now at 13%.

[maxk] 14/11/2019 12:07

It was never the same once Muzzer legged it.

[imperial3] 14/11/2019 11:53

For the private investor,this has been a complete and utter disaster.

[nutty1] 14/11/2019 11:21

I went back and had a look at the McDaniels reserve report from October 2018 for the Rainbow assets. Its worth reminding ourselves of the numbers.

Canada 1P reserves -> 2.2 MMbbls
Canada 1P NPV10 (post tax) -> CAD $48MM


Value of company today -> CAD $1.4MM


In other words, this company is trading at 3% of its underlying asset value - and that's on PROVEN reserves. These aren't volumes based on smoke, mirrors and a bike pump.

Any company looking for bookable reserves would see these numbers and be licking their lips.

The fact that there hasn't been a squeak about an outside bid tells me that either H2P want to delist the company and take all the value for themselves. Or the McDaniels report is about as much use as toilet paper.

I'm sorry everyone, its all over and for me the whole situation leaves a nasty taste.

The previous management and the NOMAD that sanctioned the Whitewash should be utterly ashamed.

[nutty1] 07/11/2019 13:10

..Kraffty...

how did he get to 10% all of a sudden?

[nutty1] 30/10/2019 08:20

Nice day today....I feel a song coming on..

"Oh, this year I'm off to sunny Spain....Y VIVA ESPANA!!!!"

[nutty1] 30/10/2019 08:17

Its easy with hindsight I suppose, but to be fair to Muzzer, he did get the share price to over £2 at one point which valued the company way north of £100MM.

He clearly had something going for him in its initial stages.

The problem was that I don't think he was cut out to really control a growing and operating company, and it got too big.

He could have ridden off into the sunset in about 2007-08, reputation greatly enhanced.

Easy with hindsight...

[dudishes] 30/10/2019 00:48

James Dewar, in his response to last accounts, open for anyone to Sue, I reckon. He clearly stated everything OK, but forgot to add that Co. had no money?

[dudishes] 30/10/2019 00:44

Bang - Another Rip Off Gone!

[earwacks] 29/10/2019 13:58

Actually they could have made a killing if they could have sold out Gyana after first drill. Derek put the blame squarely on their partners.