Cabot Energy PLC (LON:CAB) has now kicked off its summer work programme in Canada, where it is targeting an extra 300 barrels of oil production per day from the Rainbow and Virgo areas.
The company, formerly known as Northern Petroleum, told investors that it expects the programme to last for two to three months.
It plans to drill two side-tracks from existing well pads at the Rainbow project, in addition to three well work-overs. At the Virgo project, the plan is to recomplete two wells, allowing for water disposal and trucking of ‘dry’ oil.
READ: Cabot Energy has had a “seriously good kick-start” - analyst
The programme is budgeted at around US$3.5mln (US$2.6mln net to Cabot) and it will be funded from the group’s existing cash resources.
Once the programme is complete, the company expects to be producing between 800 to 1,000 bopd gross (which would be 600 to 750 bopd net).