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viewCabot Energy plc

Cabot Energy to leave AIM as it looks for finance

Snapshot

Currently seeking debt package to fund drilling programme in Canada

oil wells

Quick facts: Cabot Energy plc

Price: 1.875 GBX

AIM:CAB
Market: AIM
Market Cap: £859.6 k
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  • Cabot Energy PLC (LON:CAB) has main assets in Canada

  • Company to de-list from AIM in December

  • Majority shareholder H2P has agreed to invest US$700,000

 

What it does

In Canada, Cabot 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.

Production in the half-year to June averaged 485 barrels per day, down from 761bbl a year earlier.

Revenues were US$4.1mln (US$7.5mln) while the group broke even at an adjusted level for underlying profits.

In Italy, Cabot is set to receive a payment from Shell following both withdrawing from their licence in the Po valley region.

Next steps 

Proceeds from the US$700,000 H2P Subscription will allow Cabot to carry out its summer work programme and give it liquidity until early December 2019.

At that time, Cabot intends to approach shareholders again for further funding.

H2P, which has 72.2% stake, has confirmed it will provide the financial support needed to complete the summer work programme and as required to secure a C$5 million asset-based term loan facility from a Calgary-based private energy lender.

That loan will be used to commence a winter work programme.

 

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