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Cabot Energy confirms agreement for H2P share subscription

The major shareholder committed to new investment earlier this month as Cabot detailed a broader 3p per share equity sale.

Cabot Energy plc - Cabot Energy confirms agreement for H2P share subscription
Cash proceeds are earmarked to support upcoming well boosting programmes

Cabot Energy plc (LON:CAB) has agreed to raise US$350,000 of funds through a share sale to partner and major shareholder High Power Petroleum LLC (H2P).

The subscription price will be determined in the company’s separate open offer share sale to qualifying shareholders, to be launched in October.

Cash proceeds from the share sales are earmarked for short term working capital for the company’s immediate needs, which includes a delayed ‘summer’ work programme comprising nine well workovers, critical maintenance and well stimulation work.

READ: Cabot Energy reveals new funding arrangements

In early September, Cabot announced it would seek to sell shares to shareholders with a proposed open offer price of 3p per share. It was also previously announced that H2P had committed to invest a minimum of US$700,000, and the US$350,000 agreement reported today is part of that commitment.

"We would like to thank H2P for their continued support which follows the H2P US$0.3mln equity subscription to fund the commencement of the summer work programme and the proposed asset-level loan facility of up to C$5mln with a private energy lender to debt-fund the winter work programme, both of which were announced earlier this month.

“We look forward to providing our other shareholders with the opportunity to participate in an equity fundraising via an open offer and thank them for their continued support."

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