Admittedly, its name was changed last year, nonetheless the point stands. Operationally, Cabot has had significant success in the field, both by reworking existing wells and drilling new sidetracks.
Those successes were accelerated significantly in December, with a US$8.71mln deal to buy-out its partner.
Evolution into significant producer
On Thursday, January 25, chief executive Keith Bush told investors that the company’s evolution into a significant producer had now begun.
Cabot revealed that production averaged 827 barrels of oil per day through the first half of January, and output for 2017 averaged 400 bopd.
Thanks to the acquisition, Cabot is now targeting between 1,600 bopd and 2,000 bopd by the end of 2018 - with guidance set at 1,000 bopd to 1,200 bopd on average for the year.
Bush highlighted that achieving the targeted 2018 exit rate would be a material achievement that would deliver “significant positive cashflow benefits”.
New work programmes to grow production further
Cabot also highlighted that two recently drilled sidetrack wells continue to show a better-than-expected performance.
The 2018 field season is underway, with the drilling of the first of four new sidetrack wells in the winter work programme currently underway, the programme also include four workovers of existing wells.
A further ‘summer’ work programme, to take start in July, is presently being put together with up to six sidetrack wells planned.
In early January, Cabot revealed provisional results from the 10-32 sidetrack well where an oil flow rate of 344 barrels of oil per day was measured. Cabot tested the well over a 38-hour period, and the final flow test delivered an extrapolated production rate of 408 barrels of fluid per day, comprising 344 bopd.
The company said it expects the well will produce ‘dry oil’ once all the well completion fluid has been removed from the hole. It is anticipated that the well will provide an initial production rate of 200 bopd, in order to manage the reservoir’s longer term production potential.
The well was drilled in December, down to a vertical depth of around 1,500 metres, and it cut approximately 400 metres through the targeted reef with some 200 metres described as encountering high porosity reservoir.
At that time, Bush said: “The valuable experience gained in the directional drilling phase of these two sidetrack wells will be applied to the benefit of the winter work programme due to start shortly."
A validated strategy
More recently, Bush added: "2017 validated Cabot's asset rejuvenation strategy and demonstrated the company's ability to execute operationally.
“The next phase of the company's evolution into a significant production company begins now, with a strengthened balance sheet, growing production and a supportive shareholder base.
“Oil production is approximately three times higher than at the same time last year, the company is fully financed for the 2018 Canadian investment programme and the 2018 drilling programme is already underway.”
He added: “The focus for 2018 will be to repeat the success of our recent sidetrack wells in Canada, with up to an additional 10 wells planned during the year, while continuing to invest in the facilities to sustain the levels of production that the subsurface can deliver.”
Cabot still holds interests in Italy, where the Civita gas field is yielding around 130 barrels of oil equivalent per day.