Cabot Energy PLC Update on Italian Assets (7081N)

TIDMCAB

RNS Number : 7081N

Cabot Energy PLC

26 September 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.

26 September 2019

Cabot Energy Plc

("Cabot", the "Group" or the "Company")

Update on Italian Assets

Cabot Energy Plc (AIM: CAB), the AIM quoted oil and gas company focussed on creating predictable production growth in Canada, announces that Cabot and Shell Italia E&P S.p.A. ("Shell"), have agreed to withdraw from the Cascina Alberto onshore exploration licence in The Po Valley, Northern Italy (the "Withdrawal"). Shell will make a payment to the Group to cover the costs and inconveniences incurred in the process of the Withdrawal. The Withdrawal is subject to the approval of the Italian authorities, which is expected during Q4 2019.

The Withdrawal forms part of the Company's stated strategy to divest its interest in certain non-core assets to generate funds for ongoing working capital requirements and to focus on advancing the rest of the Group's assets.

As previously stated, the Italian government signed a decree on 12 February 2019 enacting the suspension of work on oil and gas exploration permits and applications for new exploration permits in Italy, whilst a national review is undertaken. Whilst Cabot's licences are in suspension, the Company continues to review its Italian portfolio with the intention of prioritising Cabot's offshore opportunities in the Adriatic and the Sicily Channel.

The Group is prepared to progress its offshore permits as soon as the government's review has concluded, whenever that occurs within the next 17 months. Cabot's remaining exploration permits have all been subjected to rigorous environmental reviews and, although no assurances can be given, the Group's Directors are optimistic for a positive outcome.

Scott Aitken, Chief Executive Officer of Cabot, said: "The Withdrawal from the Po Valley Cascina Alberto exploration permit is consistent with our strategy to divest non-core assets to enable Cabot to focus funding and management time on the exploration upside within the rest of our Italian portfolio."

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Enquiries:

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

Note to Editors:

Cabot Energy Plc (AIM: CAB) is an oil and gas company focussed on creating predictable production growth in Canada. Comprehensive information on Cabot and its oil and gas operations, including press releases, annual reports and interim reports are available from Cabot's website: www.cabot-energy.com

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September 26, 2019 02:02 ET (06:02 GMT)