Cabot Energy PLC Annual Reserves Report (8494V)
November 08 2017 - 1:00AM
UK Regulatory
TIDMCAB
RNS Number : 8494V
Cabot Energy PLC
08 November 2017
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
8 November 2017
Cabot Energy Plc
("Cabot Energy" or "the Company")
Annual Reserves Report
Cabot Energy (AIM: CAB), the AIM quoted oil and gas company
focusing on production led growth, announces the results of its
annual reserves report for its development and production assets in
Canada, as determined by McDaniel & Associates Consultants Ltd
as at 30 September 2017.
Summary
-- Total gross Proven plus Probable ("2P") reserves of 2.9
million barrels of oil equivalent ("mmboe")
- the Company's working interest is 75 per cent. giving net 2P reserves of 2.2 mmboe
-- Increase in gross 2P reserves of approximately 53 per cent.
from 1.9 mmboe, as at 30 September 2016, the date of the last
independent reserves report
- all prior year Probable reserves upgraded to Proven
- one million barrels of previously categorised Contingent
resource now classified as Probable reserves
- ongoing subsurface mapping project has established a
significant resource base, which the Company will work to move
through the resource value chain
-- Reserves increase is in addition to approximately 0.13 mmboe
of production during the year to 30 September 2017
-- The net present value, using a 10 per cent. discount rate
("NPV10"), of the 2P reserves is approximately US$36 million gross
or US$27 million net to the Company
The table below summarises the findings of the report as at 30
September 2017:
Proven Proven plus Probable
mmboe NPV10 (US$) mmboe NPV10 (US$)
-------------- ------ ------------ -------- -------------
Gross 1.9 $27 million 2.9 $36 million
============== ====== ============ ======== =============
Net to the
Company (75
per cent.) 1.4 $20 million 2.2 $27 million
-------------- ------ ------------ -------- -------------
Keith Bush, Chief Executive Officer, commented:
"An increase of over 50 per cent. in gross reserves and 20 per
cent. in net reserves, having divested 25 per cent. of the asset,
marks great progress for the Company in continuing to realise value
from the Canadian asset base. The movement of reserves up the value
chain from Probable to Proven through a small investment of capital
indicates the strength and potential of these assets.
"Increasing core value through production and reserves growth is
a fundamental component of the Company's strategy. The results
shown by the reserves report now provide a solid value foundation
from which the business can continue to grow."
For further information, please contact:
+44 (0)20 7469
Cabot Energy Plc 2900
Keith Bush, Chief Executive Officer
Nick Morgan, Finance Director
+44 (0)20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Joint Broker
Richard Morrison, Richard Redmayne,
Stephen Wong
+44 (0)20 7448
FirstEnergy Capital LLP 0200
Joint Broker
Jonathan Wright
+44 (0)20 3727
FTI Consulting 1000
Financial PR
Edward Westropp
In Accordance with AIM Rules - Guidance for Mining and Oil &
Gas Companies, the information contained in this announcement has
been reviewed and signed off by the CEO of Cabot Energy, Mr Keith
Bush, who has 26 years' experience as a petroleum engineer. He has
read and approved the technical disclosure in this regulatory
announcement. The technical disclosure in this announcement
complies with the SPE standard.
Notes to Editors
Cabot Energy is an oil and gas company focused on production led
growth. The Company is undertaking a redevelopment and production
project in north west Alberta and has a broader portfolio of
exploration and appraisal opportunities in countries of relatively
low political risk, primarily Italy. Comprehensive information on
Cabot Energy and its oil and gas operations, including press
releases, annual reports and interim reports are available from
Cabot Energy's website: www.cabot-energy.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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