Big Picture – A Deep Dive Examination of the Cabot Energy
Cabot Energy Snapshot
The Company is redeveloping and expanding a light oil production play from Devonian carbonate reefs and developing these horizons in north west Alberta. The assets are located in Rainbow and Virgo and consist of mineral leases, production facilities, pipeline infrastructure and wells.
Approximately 50 wells are currently in production and a number of further existing wells have the potential to be returned to production through intervention and work over operations.
Incremental production growth in 2018 is planned through the drilling of side tracks and new wells into previously produced reefs where oil recovery to date has been low. Technical work on the project is focused on mapping the key reservoir horizons across the Company’s northern Virgo area with a view to understanding and then developing the potential across the acreage.
The Company has established a strategic position in north west Alberta along with a strong operations team, both in the field and in the Calgary office.
The Group has a portfolio of exploration permits and applications which have the potential to generate high returns on investment over the medium to long term. The portfolio is focused offshore in the southern Adriatic and onshore in the Po Valley region.
Cabot has been active in the Italian oil and gas industry for over 10 years. The Company has drilled two exploration wells onshore and acquired a number of 2D and 3D seismic surveys over that time and has established ownership of high quality acreage, which has been validated by the farm in of two partners in the last two years. Shell Italia farmed into the Cascina Alberto permit onshore in the Po Valley region and High Power Petroleum, subject to regulatory approval, across all the southern Adriatic permits and applications. The Company also has offshore permits in the Sicily channel, close to the prolific Vega field operated by Edison.
Italy benefits from a well established oil and gas industry that is in a relatively early phase of the industry life cycle when compared to other European peers. The country also has a fiscal system that attracts investment and an extremely good hydrocarbon system that has been proven to work throughout the onshore and offshore. The pace of development for the industry in the country has proven to be slower than counterparts due to a lengthy environmental impact assessment process, however when work programmes are approved progress can be made executing the work in a reasonable time frame.
The Company will create three to five significant well events in Italy over the medium to long term to expose shareholders to the possibility of significant upside upon success of any one event.
PEL 629 – ONSHORE SOUTH AUSTRALIA
Cabot has 100 per cent. of a large onshore exploration licence in the Otway Basin, South Australia, PEL 629. The licence area is approximately 1.4 million acres and was granted in September 2013 with a five year term. The licence has been suspended since June 2014 to allow the Company to develop the understanding of the area in order to farm out the licence.
The area contains both conventional and unconventional opportunities from the early Cretaceous Crayfish group to the late Jurassic Casterton formation. There are nearby discoveries within the Otway Basin which prove a working hydrocarbon system and recent wells drilled in the Penola trough by Beach Energy have identified new plays. The Otway basin also has pipeline infrastructure which would enable quicker development of any discovery.
The Company has completed a first year work programme that included reprocessing and interpretation of 1000 line km’s of existing seismic and extensive geochemical analyses and basin modelling work that supports the hydrocarbon potential in the Lower Sawpit Shale and Casterton formation.
A recent independent review of all the work on PEL 629 has concluded that a study programme is required to determine what work should be included in a formal year two work programme. The Company will now execute this study programme with a view to establishing what will create value within the licence. The South Australian government are holding a licence round that includes licences adjacent to PEL 629 this year and the results will be indicative of the future farmout potential in the area.
High Power Petroleum have farmed into the licence for a 25 per cent. interest, with the option to go to a 50 per cent, interest through paying for a $1 million seismic programme.
Canada, Italy and Australia.
Senior Management are committed to high standards of stewardship and governance and aims to create a culture which demands the same commitment and performance in all its business activities. As a result, accountability, integrity and honesty are fostered throughout the group.
INTERIM NON-EXECUTIVE CHAIRMAN
James joined Cabot Energy in July 2018 as interim Non – executive Chairman. James has over 35 years of international business, finance, accounting and commercial experience. His career has included senior roles at Ambit Energy Corporation, Viking services Ltd, Energy World Corporation, Equus Petroleum, Atlantic Energy, East West Petroleum, Dana Gas and BP.
James currently serves as an Independent Non-executive Director and Audit Committee Chair for Lamprell Plc, PICO International Petroleum Corporation and for Cheiron Petroleum Corporation.
James is a Chartered Accountant having qualified with KPMG.
CHIEF EXECUTIVE OFFICER
Scott Aitken was appointed Chief Executive Officer of Cabot Energy in June 2018, he is not appointed to the Board of Directors. Scott has more than 25 years’ experience in the oil & gas exploration and production industry, including 15 years as CEO. He co-founded High Power Petroleum LLC alongside Campbell Airlie and Petro Mychalkiw in 2015 as the oil exploration and production subsidiary of pulse-power technology world leader, I-Pulse.
He started his career as a Petroleum Engineer with ExxonMobil (formerly Mobil) in Aberdeen and went on to work in senior roles, including chief executive officer and regional head, at companies with operations in Europe, Africa, Asia, Middle East and North America. He is highly experienced at growing small companies into multi-billion dollar operations through the leverage of technology alongside community partnership. Scott has raised US$1 billion capital investment for oil & gas exploration, development and production over the last 15 years, creating ventures in the USA, Canada, Turkey and West Africa, delivering over 100,000 boepd production and 1 billion boe reserves and resources.
CHIEF FINANCIAL OFFICER
Petro Mychalkiw joined Cabot Energy as a Non-executive Director in January 2018 and was appointed Chief Financial Officer in June 2018.
Petro has 28 years’ experience as a Chartered Accountant and over 12 years’ experience in the natural resources industry. His career has included roles as Chief Financial Officer of Oriel Resources, Equus Petroleum, Orsu Metals Corporation and most recently at I-Pulse Inc., the parent company of H2P. Petro has extensive experience of project financing including resource development projects, acquisition fundraising, debt refinancing and private placings.
Petro represents the interests of High Power Petroleum, the Company’s largest shareholder.
PRESIDENT, CABOT ENERGY INC.
Paul joined Cabot Energy in September 2014 as Chief Operating Officer and moved to Calgary in April 2017 after being appointed as President of Cabot Energy Inc.
He has a facilities engineering background and has an extensive background in oil and gas operations having previously held management positions with Consort Resources, Caledonia Oil and Gas and most recently as General Manager, Operations for E.ON Exploration and Production Ltd.
Paul has experience of working in the UK North Sea, North Africa, Norway, and North America and is a Member of the Institute of Measurement and Control and the Engineering Council in the UK.
CHIEF TECHNICAL OFFICER
Campbell Airlie was appointed as a Non-executive Director in December 2016 and was appointed as Chief Technical Officer in June 2018.
Campbell has 36 years’ experience as a petroleum engineer with extensive time spent in upstream field development strategy and implementation. His career has included reservoir and production management and technical excellence roles with Schlumberger, BP, Edinburgh Petroleum Services and most recently as founder and Chief Technical Officer of Seven Energy.
Campbell has been a Distinguished Lecturer in Asset Management with the Society of Petroleum Engineers and a visiting lecturer in reservoir engineering and production optimisation at Heriot Watt University.
Campbell represents the interests of High Power Petroleum, the Company’s largest shareholder.
INDEPENDENT NON-EXECUTIVE DIRECTOR
Rachel Maguire is an entrepreneur who is the founder and CEO of Arko Iris, a business consultancy advising organisations on best practice in stakeholder engagement, corporate governance and corporate responsibility. She is a seasoned professional who brings with her over 20 years’ experience of The City and capital markets. Previous roles include senior management positions at London Stock Exchange including Head of UK Business Development and Head of AIM (UK). Rachel’s client experience includes FTSE 250 companies and global companies including Spectris, internationally-based MHP S.E and Euroclear. Rachel is also an independent trustee at the National Paralympic Heritage Trust where she chairs the Finance & Development Committee. Rachel is a member of the Chartered Institute of Taxation.
Cabot Energy Plc
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