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Oil Capital
EPIC: CAB
Market: AIM
52-week High/Low: 5.45p / 1.40p
Sector: Energy
Market Cap: 10.43M

Cabot Energy is an oil and gas exploration and production company quoted on the Alternative Investment Market of the London Stock Exchange (LSE:CAB)

The Company has conventional, light oil production operations in north west Alberta, Canada, and exploration and appraisal opportunities in Italy, both on and offshore. The Company is pursuing a strategy of production led growth, primarily...

Cabot Energy

www.cabot-energy.com

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Big picture - Why invest in Cabot Energy

Cabot Energy Snapshot

Strategy

The Company’s strategy comprises three key aspects: production led growth, capital discipline and exploration and appraisal upside.

Production led growth

  • financial stability
  • core value growth
  • within management’s control

Exploration & Appraisal upside

  • opportunity for significant returns
  • step change in value
  • company making potential

Capital discipline

  • capital intensive industry requires strict control
  • project by project analysis to maximise returns
  • risk based approach to capital deployment

 

Canada

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.

 

Italy

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.

 

Australia

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.

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.

 

James Dewar
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.

 

Scott Aitken
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.

 

Petro Mychalkiw
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.

 

Paul Lafferty
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.

 

Campbell Airlie
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.

 

Rachel Maguire
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's significant shareholders with an interest of more than three per cent of the Company's issued share capital, last updated 30th August 2018:

Major shareholders

 
Name Shares per cent of issued
High Power Petroleum LLC 376,686,081 56.90
Cavendish Asset Management Limited 65,084,063 9.83
City Financial Investment Company Limited 56,247,700 8.50
Information above was last updated from the register dated 30th August 2018 and is based upon notifications received from shareholders by the Company, s.793 analysis and further register analysis.

Directors’ shareholdings

 
  Ordinary shares per cent of issued
Total 1,189,886 0.18 per cent.
P J Lafferty 1,189,886 0.18 per cent.

Shareholder information

 
Summary information
For stock price please follow link London Stock Exchange - CAB
Stock Symbol CAB
Market AIM, part of the London Stock Exchange
FTSE Index FTSE AIM All-Share
FTSE Sector Oil & Gas Producers
ISIN GB00B0D47T64
Additional listings/trading platforms None
 
Share data
Class of security Ordinary
Par value 1p
Shares in issue 661,986,961
Shares not currently in public hands 502,853,233
Percentage of shares not currently in public hands 76.99
ISIN GB00B0D47T64
Settlement type Crest
Share restrictions None

 

London Office 

Cabot Energy Plc
Chester House, Unit 3.01
Kennington Park
1-3 Brixton Road
London SW9 6DE

Email: [email protected]

Tel: +44 (0)20 7469 2900

INDEPENDENT AUDITOR

Deloitte LLP
2 New Street Square
London EC4A 3BZ

BANKS

HSBC Bank Plc
8 Canada Square
London E14 5HQ

Lloyds Banking Group
10 Gresham Street
London EC2V 7AE

ATB Financial
2202 20 Street
Nanton, Alberta T0L 1R0

UniCredit Banca
Piazza Cavour B
Roma
Italy

NOMINATED ADVISER AND BROKERS

SP Angel
Prince Frederick House
35-39 Maddox Street
London W1S 2PP

GMP FirstEnergy
85 London Wall
London EC2M 7AD

SOLICITORS

Gordons Partnership LLP
22 Great James Street
London WC1N 3ES

Fieldfisher LLP
Riverbank House, 2 Swan Lane
London EC4R 3TT

REGISTRARS

Neville Registrars
Neville House
Steelpark Road, Halesowen
West Midlands B62 8HD

PUBLIC RELATIONS

Luther Pendragon
48 Gracechurch Street
London
EC3V 0EJ
United Kingdom

TEL: +44 20 7618 9100

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