Cabot Energy PLC AGM Statement and Operational Update (9497O)

TIDMCAB

RNS Number : 9497O

Cabot Energy PLC

23 May 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.

23 May 2018

Cabot Energy Plc

("Cabot Energy" or the "Company")

AGM and operational update

Cabot Energy (AIM:CAB), the AIM quoted oil and gas company focused on production led growth balanced with high impact exploration and appraisal opportunities, will hold its annual general meeting later today and Keith Bush, the Company's Chief Executive Officer, will be making a presentation to shareholders. In advance of the AGM, the Company is providing the following operational update.

-- As previously announced, the Company has completed its Canadian winter work programme in Rainbow which included the drilling of four new side track wells

- latest combined production test rate from the four wells is line with expectation at approximately 350 bopd

-- In addition, the Company was required to invest additional capital in the infrastructure of the Rainbow assets, including pipeline replacement and integrity work, abandonments and well workover activity

-- The planned summer drilling programme will now be deferred in order to:

   -   fully integrate the operational data obtained from the winter work programme 
   -   confirm the production performance of the new wells over an extended period 
   -   manage group capital requirements 

-- The Company is assessing a potential well reinstatement programme during the summer of 2018 on a number of existing wells to increase production

-- With the changes to the summer work programme, the production for the year is expected to be below previous guidance and the Company will provide new guidance once the programme for the second half of the year has been finalised

-- The Company's average production during April was 851 bopd and average sales for the month was 914 bopd, with seasonal road bans impacting production during the second half of the month from single well batteries

Keith Bush, Chief Executive Officer of Cabot Energy, commented:

"Understanding the performance of the new wells is important for the long term development of the Rainbow assets and the deferral of the summer work programme is a prudent step to maximise oil recovery over the medium to long term.

"The valuable lessons learned from the winter drilling programme will enable more cost effective well options to be developed, including the drilling of new wells as opposed to side track wells, which is expected to improve the development of the area."

Cabot Energy will make available a copy of the presentation on its website later today. The presentation contains no previously unpublished information that could be considered price sensitive.

For further information please contact:

 
                                      [phone] 
Cabot Energy Plc                       2900 
Keith Bush, Chief Executive Officer 
Nick Morgan, Finance Director 
 
                                      [phone] 
SP Angel Corporate Finance LLP         0470 
Nominated Adviser and Joint Broker 
Richard Morrison, Richard Redmayne 
 
                                      [phone] 
GMP FirstEnergy                        0200 
Joint Broker 
Jonathan Wright, David van Erp 
 
                                      [phone] 
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 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 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 [e-mail] or visit www.rns.com.

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May 23, 2018 02:01 ET (06:01 GMT)