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Cabot Energy reassesses summer drilllng plans in Canada

Published: 07:41 23 May 2018 BST

oil well
Cabot may drill new wells infuture rather than refurbish existing sites

Cabot Energy PLC (LON:CAB) has deferred further drilling at its Rainbow prospect in Canada while it upgrades the infrastructure at the site and analyses the latest sidetrack well data.

Four sidetracks drilled earlier this year produced 350 barrels per day (bopd) on average on test.

Six more sidetracks were planned but due to the additional site spending these will now be postponed and the performance of the recent wells confirmed over a longer period.

READ: Cabot Energy chairman to step down once a successor is found

A reinstatement programme on existing wells is under consideration to increase output but production for the year will not now reach the previous guidance of between 1,600 to 2,000 barrels per day.

The company's average production during April was 851 bopd with average sales for the month of 914 bopd. Seasonal road bans impacted production, said the company.

Keith Bush, Cabot’s chief executive, added: "Understanding the performance of the new wells is important for the long-term development of the Rainbow assets and the deferral of the summer work programme is a prudent step to maximise oil recovery over the medium to long-term."

Going forward, it may be more cost-effective for Cabot to drill new wells as opposed to sidetracks, he added.

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