Cabot Energy PLC Drilling Operations Update (0487H)

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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March 08, 2018 02:00 ET (07:00 GMT)