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Cabot Energy continues to show production growth thanks to winter programme in Canada

Success this winter has put Cabot on track to finish the year producing at a rate of 1,600 to 2,000 barrels of oil per day
oil and gas operations
Sidetracks drilled in the winter significantly boosted output

Cabot Energy Plc (LON:CAB) told investors that production in April averaged 950 barrels of oil per day, meanwhile, the measure for the first three months of the year averaged 725 bopd.

It is anticipated that another 200 bopd of crude production will be brought online through the second quarter.

The Canada-focused junior oil company said it remains on track to achieve its full year production target, to hit an exit rate of 1,600 to 2,000 bopd. The average production rate for the year is targeted at 1,000 o 1,200 bopd.

WATCH: Cabot Energy looking set to hit full year production targets

"The results of the drilling programme have been excellent and are testament to the technical work performed by the team,” said Keith Bush, Cabot chief executive.

“The new wells demonstrate the company's strategy of core value growth through increasing production from the existing asset base in Canada.”

He added: "With each additional well drilled, the interpretation of the available data improves, allowing for future opportunities to be effectively optimised. The lessons learned in the winter programme will be taken forward to ensure that the summer work programme provides similarly successful wells.”

To grow output, Cabot is advancing a winter work programme in Canada.

Four sidetrack wells were successfully frilled and tied into the production facilities. These wells contributed some 450 bopd to the daily rate (whereas the original wells had yielded around 30 bopd).

Cabot noted that the test of a recently suspended well, tagged 03-02, has marked a test rate of 200 bopd, but, it will be put online at a rate of around 100 bopd in order to manage long term reservoir production.

Additionally, the company said that it has extended a second export route to market.

It is, meanwhile, preparing for work to resume sweet gas production equating to 130 bopd from the Bluesky formation.

Elsewhere, in Italy, the company is working towards securing sign off for a proposed 3D seismic programme to cover the Giove oil discovery and Cygnus exploration prospect. To that end,  the company has now completed a 60 day marine mammal monitoring programme in the Southern Adriatic.

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