Addressing ‘recent market commentary’, in a stock market, the company said it would potentially issue new shares priced between 5p and 5.5p.
Additionally, the company intends to extend the funding to existing shareholders via an open offer on the same terms as the placing.
“The funds raised will be used primarily to increase the production of the company's oil and gas development assets in Canada,” Cabot said in a statement.
“There can be no guarantee that any equity capital raising will proceed or the terms upon which such raising would proceed. A further announcement will be made as and when appropriate”.