Cabot Energy PLC Relinquishment of Australian PEL 629 Licence (5120V)

TIDMCAB

RNS Number : 5120V

Cabot Energy PLC

09 April 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.

9 April 2019

Cabot Energy Plc

("Cabot Energy" or the "Company")

Relinquishment of Australian PEL 629 Licence

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."

Enquiries:

 
Cabot Energy Plc                          [phone] 
Scott Aitken, CEO 
 Petro Mychalkiw, CFO 
 
SP Angel Corporate Finance LLP            [phone] 
Nominated Adviser and Joint Broker 
David Hignell, Richard Hail, Richard 
 Redmayne 
 
GMP FirstEnergy                           [phone] 
Joint Broker 
Jonathan Wright 
 
Luther Pendragon                          [phone] 
Financial PR 
Harry Chathli, Alexis Gore, Joe Quinlan 
 

Note to Editors:

Cabot Energy (AIM: CAB) is an oil and gas company focussed on creating predictable production growth in Canada. 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

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April 09, 2019 02:01 ET (06:01 GMT)