Currently seeking debt package to fund drilling programme in Canada
Working capital only runs until end of May
Majority shareholder will provide short-term funding
What it does
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.
Approximately 50 wells are currently in production existing wells have the potential to be returned to production through intervention and work over operations.
In 2018, a new estimate indicated Net Proven plus Probable (2P) reserves of 3.6mln barrels of oil equivalent, which rises to 42.2 mmboe including contingent resources.
Cabot has a portfolio of exploration permits and applications focused offshore in the southern Adriatic and onshore in the Po Valley region.
On 12 February 2019, the Italian government suspended work on oil and gas exploration permits and new applications while it undertook an 18-month review to determine which areas can be developed.
How is it doing
In May, Cabot said it has enough working capital to last until the end of the month.
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.
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.
Majority shareholder High Power Petroleum has said it will provide limited short-term funding, pending the satisfactory progression of the debt finance discussions.
Oil price rise in Edmonton has helped cash position a little
Company has cash to end May
Talks on going about a long-term debt plan
Majority shareholder H2P will provide short-term funds while debt finance is sought
A number of existing wells are potential candidates for the Blue Spark well-head technology.
This been developed by High Power Petroleum, Cabot’s majority shareholder and where Scott Aitken is also chief executive.