Proactive Investors - Run By Investors For Investors

Cabot Energy gets some wriggle room as Edmonton crude price recovers

The price in Edmonton has recovered to US$44 per barrel or within its normal discount range against West Texas light oil.
Canadian flag
Edmonton oil price has recovered against WTI

A bounce in the price of oil in Edmonton, Canada, has given Cabot Energy PLC (LON:CAB) a little more time to negotiate a long-term funding package.

Cabot raised £2.53mln from a share issue in March and has enough working capital to last until the end of May.

Majority shareholder High Power Petroleum has said it will provide limited short-term funding, pending the satisfactory progression of the debt finance discussions.

Scott Aitken, chief executive, added: "The first quarter of 2019 has seen the Edmonton oil price rebound strongly towards its historic price differential with WTI.

“Crude sales prices were therefore significantly above our planning assumption and this, alongside tight cost control and anticipated short-term funding from H2P, has provided us with a longer period to negotiate the debt funding for the planned drilling and workover operations in the summer.”

The price in Edmonton has recovered to US$44 per barrel or within its normal discount range against West Texas light oil.

Cabot remains cashflow positive at this level, said the statement, including paying off creditors.

Revenues in the three months to March were US$2mln (US$3.4mln) as production averaged 521 barrels per day against 725 a year earlier.

Cabot has engaged a specialist financial advisory firm to source asset-level debt finance for a 2019 summer work programme to develop its Canadian assets, though it added no debt commitments have yet been secured.

View full CAB profile View Profile

Cabot Energy plc Timeline

Related Articles

1548047910_757z468_1543882077_Carnarvon-noble-tom-prosser.jpg
January 21 2019
The company aims to expand its portfolio of hydrocarbon resources as it prepares oil and gas projects for production and continues its regional exploration work.
oil workers
April 09 2019
Around 31% of its production was oil and it saw an average sales price of US$63.80 per barrel.
Gas flame
April 04 2019
POS-GRIP, invented by the company’s chief executive Ben van Bilderbeek, is designed to prevent gas leaks, particularly methane, in wellheads and other connectors

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use