logo-loader

Cabot Energy’s growth efforts paid off in 2017, bigger plans are on-track this year

Published: 09:14 19 Apr 2018 BST

oil and gas operations
Cabot is having its most active year to date

Cabot Energy Plc (LON:CAB) has reported a 33% increase in revenue for the financial year ended December 31 as the group’s growth initiatives in Canada paid off.

The AIM-quoted junior oiler generated US$4.8mln in the year as gross average production rose 43% to 411 barrels of oil per day for the twelve months – such was the pace of growth, the gross rate for December alone measured 653 bopd.

Some 30 wells were worked over and brought online during the period, operations continue to deliver growth and, significantly, in the present year, the company has acquired an additional 25% stake to take full ownership of the group’s Canadian assets.

Presently, group production stands at around 950 bopd, and Cabot is working to a 2,000 bopd target by this year’s end.

WATCH: Cabot Energy set to hit full year production targets

"The group has made great progress throughout 2017, both in the development of the Canadian assets and by steadily moving the Italian assets through the regulatory process,” said Keith Bush, Cabot chief executive.

“The significant increase in production in Canada, fundamental to the group strategy, is evidence of the potential of the assets.

Bush highlighted that 2018 will be the group’s “most operationally active year to date”.

“With progress accelerating in 2018, production is on target to double again by the end of this year and will provide significant positive cashflow for investment both in Canada and in other Group assets,” he added.

In terms of the financial results, the ramping-up company made a US$3.13mln loss for the year and it ended 2017 with US$1.77mln of cash.

Cabot subsequently raised US$16mln of new capital to fund the 2018 work programmes, which will see up to six new wells drilled in Canada.

The company said it is on-track to achieve production guidance - for an exit rate in the range of 1,600 to 2,000 bopd, and an average rate for the year at 1,000 to 1,200 bopd.

Investor Update: Circassia boosts first-half revenues by 40%

Headlines from the Proactive UK newsroom. Drug inhaler specialist Circassia (LON:CIR) increased revenues by 40% to £27.9mln in the half year to June and expects sales to rise to betwee £60-65mn over the full year. Sales recently started in China and are going well.  Eurasia Mining...

on 26/9/19