TIDMCAB
RNS Number : 3989L
Cabot Energy PLC
19 April 2018
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
Cabot Energy Plc
("Cabot Energy" or "the Group")
Preliminary Results for the Year Ended 31 December 2017
Cabot Energy Plc (AIM:CAB), the AIM quoted oil and gas company
focused on production led growth balanced with high impact
exploration and appraisal opportunities, announces its Preliminary
Results for the year ended 31 December 2017.
2017 Preliminary Results Highlights
Production and reserves
-- December gross average production up 181% to 653 bopd
(December 2016: 232 bopd)
-- Average annual gross production up 42% to 411 bopd (2016: 290
bopd)
-- Gross 2P reserves up 53% to 2.9 mmboe
-- Gross 2P NPV(10) value up 57% to $36 million
Operations
-- 30 wells worked over and brought back into production
-- Two new sidetrack wells drilled and brought into
production
-- Subsurface project initiated in Canada to identify potential
of additional hydrocarbon bearing horizons
-- Environmental study for the acquisition of 2D seismic
submitted by operator Shell Italia in the Po Valley, Italy
Financial
-- Revenue up 33% to $4.8 million (2016: $3.6 million)
-- Production cost excluding royalty of $34 per barrel
-- Administration expenses of $2.9 million (2016: $2.3
million)
-- Loss before tax for 2017 of $4.0 million (2016 loss of $2.5
million)
-- Unaudited cash on the balance sheet of $10.3 million as at 31
March 2018 (31 December 2017: $1.8 million)
Corporate
-- Acquisition of six wells and additional production facility
in Rainbow area, Canada
-- Acquisition of the Civita gas field, a high value production
asset onshore Italy, subject to regulatory approval
-- Group rebranded as Cabot Energy Plc and board strengthened
with the addition of Paul Lafferty
Post year end activity
-- Successful equity raise of US$16 million to fund 2018 work
programme
-- Acquisition of 25% of the Canadian assets to take Group
ownership to 100%
-- Four wells drilled in Canada and production increased to
approximately 950 bopd
-- Up to six further wells being planned for 2018 in Canada
-- Group on track to achieve production guidance
-- Marine monitoring programme completed offshore Italy and data
submitted to regulator in advance of 3D seismic campaign, planned
for later in the year, subject to regulatory approval
Keith Bush, Chief Executive Officer of Cabot Energy Plc,
commented:
"The Group has made great progress throughout 2017, both in the
development of the Canadian assets and by steadily moving the
Italian assets through the regulatory process. The significant
increase in production in Canada, fundamental to the Group
strategy, is evidence of the potential of the assets. With progress
accelerating in 2018, production is on target to double again by
the end of this year and will provide significant positive cashflow
for investment both in Canada and in other Group assets.
"The experience the Group has gained working within the Italian
oil and gas industry has been invaluable in moving the existing
asset base forward. Progress with the high potential exploration
and appraisal assets has been enhanced with the acquisition of the
Civita production asset and the Group is now well positioned to
realise the value growth that operations in Italy will bring.
"With 2018 set to be the most operationally active year to date,
the Group is set to deliver significant growth in production, which
will in turn lead to material growth in the value of the
business."
For further information please contact:
Cabot Energy Plc +44 (0)20 7469 2900
Keith Bush, Chief Executive Officer
Nick Morgan, Finance Director
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Richard Morrison, Richard Redmayne, Stephen Wong
GMP FirstEnergy LLP +44 (0)20 7448 0200
Joint Broker
Jonathan Wright, David van Erp
FTI Consulting +44 (0)20 3727 1000
Financial PR
Edward Westropp
Chairman's and Chief Executive Officer's Statement
The improving industry environment and strong performance of the
Group's assets made 2017 a year of progress for Cabot Energy. After
the most prolonged industry downturn for 30 years, exaggerated by
the world macro-economic climate, the oil and gas industry turned a
corner, supported by gradually increasing commodity prices. This
environment enabled the Group to move forward into the start of a
period of significant growth, with a strengthened balance sheet,
increased reserve position and production growth pathway.
To reinforce this new period and recognise the development of
the Group, the Group rebranded as Cabot Energy Plc. John Cabot, an
explorer from Italy who came to England to seek funding for a
voyage that ultimately discovered Canada, is synonymous with the
areas of the world in which the Group works and using his name
reflects the focus applied to both the Canadian and Italian assets
within the Group.
The improvement in the oil price has further validated the
Group's strategy of production led growth. Strong shareholder
support for this strategy enabled the Group to raise the necessary
capital at the end of 2016 to invest in the production assets in
Canada. This allowed the operations team to carry out an ambitious
2017 work programme, with production through the year more than
doubling from the end of 2016.
Canada - year of production growth and technical de-risking
Continuing to build on the production growth made in 2016, the
work programme during 2017 very much centred on restarting existing
wells and improving the production throughput of the facilities.
The opportunities to do this were enhanced with the acquisition of
an additional production facility and six wells in the Rainbow
area, near the Group's existing operations. In line with other
Group acquisitions, there was no capital cost, with the Group
assuming the abandonment liability of the wells and facility. The
facility also came with a connection point into the national
Canadian pipeline system, providing an additional route to market
for the Group's oil.
The Group executed 30 well workovers and restarts during the
year, including five of the six wells from the acquisition. The
additional production from this workover campaign proved a very
cost-effective way of increasing the Group's core production.
As the understanding of the asset base improved during the year,
additional development opportunities were identified by the
technical team, particularly sidetrack wells, to allow new
production from the identified resource base. Towards the end of
the year, two of the sidetrack opportunities were drilled to test
the interpretation of the subsurface information; both wells gave
good results and have subsequently been put on production. The
lessons learned during the drilling of these wells have already
been taken successfully into the 2018 winter drilling campaign.
Technical work on the assets has led to the identification not
only of additional opportunities comparable to the sidetrack wells
drilled in 2017, but has also given rise to the re-interpretation
of an existing play that should generate multiple drilling
opportunities over the next few years. Technical work and
operations will aim to test this play in 2018 while still
developing the already identified well opportunities.
The result of the capital work programme during the year saw
gross asset production increase from an average of 232 bopd during
December 2016 to 653 bopd during December 2017. It also meant that
average gross production for 2017 was greater than 400 bopd
compared with 290 bopd in 2016.
The growth in Canadian operations meant that additional
expertise was required in the Canadian office. The Group Chief
Operating Officer, Paul Lafferty, transferred to the Calgary office
to run Cabot Energy Inc., the Group's Canadian subsidiary. Paul's
extensive experience of production operations will be invaluable in
implementing the future growth plans effectively. The team in
Calgary has also benefited from additional engineering and
operational staff to supplement the existing skillset.
Italy - progress in balancing portfolio
While production and operations were growing in Canada, the
Group has also been making progress in Italy, particularly with a
first step into production operations with the acquisition of a 100
per cent. interest in certain onshore assets. The acquisition
included valuable gas production of approximately 130 boepd from
the Civita gas field, along with two other production concessions
with the capacity to restart production or redevelop the fields.
The gas market in Italy maintains a very attractive pricing
structure for producers and is a natural offset to Canadian oil
production. The acquisition is currently going through the
regulatory approval process and is expected to complete in
2018.
Progress has been made with the Group exploration and appraisal
assets in Italy, although at a slower pace than in Canada. Shell
Italia, the operator of the Cascina Alberto permit in the western
Po Valley submitted an Environmental Impact Assessment for the
acquisition of additional 2D seismic at the end of the year. The
seismic programme will further define the exploration prospects
within the permit in advance of drilling a possible exploration
well.
Preparation work for a 3D seismic programme on the southern
Adriatic permits continued. In the second half of the year, the
Group started a tender process to identify the preferred contractor
for the programme. In conjunction with this, a marine mammal
monitoring programme, required before the seismic acquisition can
commence, was planned and resourced, with operations starting in
early January 2018. Additionally, subsurface technical review work
during the year identified further prospectivity in the southern
Adriatic permits with deeper targets identified for both the Giove
and Medusa discoveries. This work allows the Group to apply for a
combined work programme for both the F.R39 and F.R40 permits, which
if granted, will enable both permits to be taken into the next
phase of exploration with the drilling of one well.
The Group remains committed to creating value from the Italian
portfolio. The completion of the Civita acquisition will provide
not only valuable cashflow, but also an operating base and
capability that will allow further expansion in the area.
Business Development - increased asset ownership and
acquisitions
As the results of the work programmes in Canada continued to be
successful, it became clear that extending the potential of the
assets would require additional capital. Therefore, during the
fourth quarter, discussions with the Group's major shareholders
took place to determine the level of the investment that was
available. Support for the Group from the three major shareholders
was strong, and particularly from High Power Petroleum LLC ("H2P"),
who were keen on investing in the Group to a greater level than
they had previously done. The Group also considered that production
from the Canadian assets was important to maintain and grow, and
that rather than have H2P as a joint venture partner with a 50 per
cent. holding in the assets, it would be better for the Group to
own 100 per cent. at the asset level and for H2P to invest more in
the equity of the Group.
The result of these discussions was that the Group reacquired
H2P's 25 per cent. share of the Canadian assets along with their
option to buy an additional 25 per cent. In addition to this, H2P
invested $12 million in equity, which, when combined with
investment from both City Financial, Cavendish Asset Management and
other institutional and private shareholders resulted in a total
equity fund raise of approximately $16 million, completed in early
January 2018. The investment from H2P meant that their holding in
the Group exceeded 30 per cent. and therefore required independent
shareholder approval, which was duly received.
With the additional shareholding, H2P became eligible to appoint
a further board member. Petro Mychalkiw, who has a strong
background in finance, was appointed in early 2018.
Outlook - sustained production growth and cash generation
Looking forward into 2018 and beyond, the capital raised early
in the year enables the Group to pursue an aggressive development
programme. The success of 2017 was emulated with four sidetrack
wells drilled in the first quarter of 2018. These all produced
strongly under test and when placed on production. The aim of the
2018 work programme is to more than double production from the
start of the year to the end of the year with up to six further
sidetrack wells to be drilled later in the year. The exit rate for
2018 is expected to be in the range of 1,600 to 2,000 bopd and an
average rate for the year of 1,000 to 1,200 bopd.
Beyond 2018, the Group is looking to establish multiple drilling
opportunities in the existing Canadian asset base which will
provide low risk production growth. In Italy, the completion of the
Civita production acquisition will provide impetus to develop
further production opportunities in country, while the longer term
high reward exploration and appraisal opportunities continue to
mature.
The continued support of shareholders has allowed the Group to
come through the prolonged industry downturn and the Group is now
in a position to grow value in the improving industry
environment.
We appreciate the hard work that delivered positive results in
2017 and thank all staff and contractors for their contribution to
this success.
Jon Murphy
Chairman
Keith Bush
Chief Executive Officer
Review of Operations
Canada
2017 Activity
Total oil production for the year from the Rainbow and Virgo
assets amounted to approximately 150,000 bbls gross, equating to
411 bopd average for the full year, an increase of over 40 per
cent. on 2016 gross full year production average. Gross production
during December 2017 peaked at 850 bopd during the first two weeks,
showing the potential of the assets that had been developed during
the successful 2017 work programmes. The average production for
December was 653 bopd due to extreme adverse weather during the
second half of the month.
Operating expenditure during the year retained the savings seen
during 2016 due to a combination of the Group owning production
facilities, which significantly reduced third party processing
fees, and the industry wide reduction in service company costs
reflecting the lower oil price environment.
The two work programmes executed during the year focused mainly
on the Rainbow assets. During the campaign, 30 wells were
successfully worked over, having been previously shut in as a
result of mechanical issues, and two sidetrack wells were drilled,
targeting oil in un-swept sections of Keg River reefs.
Subsurface activity concentrated on identifying sidetrack well
candidates in the Rainbow area and mapping the areas covered by
existing Group lands in the Virgo area, to identify future
development opportunities. Additional seismic data was purchased to
allow mapping from well data to be tied to the seismic. Significant
steps forward were taken in the understanding of both the Keg River
and Zama member reservoir units, which has enabled the
identification of possible drilling opportunities, likely to be
tested during the 2018 drilling programme.
In September 2017 the Group commissioned McDaniel and Associates
Consultants Ltd to perform an independent reserves evaluation
taking into consideration the results of the two work programmes.
As of 30 September 2017, total Proven and Probable reserves were
2.1 mmboe net to the Group (2.9 mmboe gross), an increase of over
50 per cent. in gross reserves over the previous year and in
addition to the production during the year.
In March 2017, the Group acquired the 13-06 processing facility
comprising six shut-in production wells, a water disposal well and
processing and tank storage facilities located near to existing
Group owned infrastructure in the Rainbow area. Five of the
production wells plus the water disposal well were brought into
production during the year and the facility was connected to the
Plains pipeline system in early 2018 giving the Group a second oil
export route to market.
Health, safety and environmental performance was satisfactory
for the Canadian assets during 2017 with one lost time incident in
over 65,000 manhours worked. There was one reportable oil spill
that was subsequently cleaned up with remediation activities agreed
and implemented with the local regulatory authorities. The Group
also embarked on a significant pipeline integrity project in the
Rainbow area running In Line Inspections ("ILI") using intelligent
pigging for major in-field pipelines. This will give the asset a
base line assurance for the future condition and integrity
monitoring of this important infrastructure while reducing the risk
of any harm to the environment.
2018 Activity
Activities in early 2018 have been focused on a winter work
programme comprising the drilling of four sidetrack wells which are
now on production at a combined rate of approximately 450 bopd.
Planning has commenced for a summer work programme, comprising
up to a further six sidetrack wells. In addition, by the end of
March 2018 the Group had completed the ILI programme on the key
pipelines in the Rainbow asset and completed the tie-in of the
export route for the 13-06 facility acquired during 2017.
Italy
Offshore
The main focus offshore Italy has been on the Giove discovery
and Cygnus prospect in the southern Adriatic, where approval by the
Ministry of Environment was obtained for the required noise
propagation study, enabling the preparation of the marine survey
over the seismic acquisition area and the issue of Invitations to
Tender ("ITT") for the seismic acquisition programme.
By the year end the contract for the marine survey had been
awarded and work commenced offshore in early January 2018. ITTs for
the seismic acquisition have now been received and are presently
being evaluated with a view to performing the surveys in the autumn
of 2018 subject to suitable commercial terms being agreed.
Work continues on combining the work programmes for permits
F.R39 and F.R40. This will allow one well to move both permits into
the second exploration licence period.
Onshore
Shell Italia, the operator of the Cascina Alberto permit in the
Po Valley, has made good progress on the exploration work programme
and submitted an Environmental Impact Assessment for the
acquisition of further 2D seismic. The Group has a 20 per cent.
interest in the permit and is carried for 2D seismic costs up to $4
million and for costs relating to a single exploration well up to
$50 million.
The acquisition of the Civita gas field and other production
concessions was announced in June 2017. Since then the Group has
had close cooperation with the current operator of the concessions
in order to prepare to assume operatorship of the field once
regulatory approval has been received from the Italian authorities.
This approval is expected during 2018 and will add approximately
130 boepd to the Group's production and provide an operating base
in country to assist with future onshore as well as offshore
exploration, development and production activities.
Australia
During the year the Group carried out a technical review of the
data on the license and proposed a work plan to the Australian
government. The review identified conventional gas prospectivity on
the permit and the Group has been granted a license suspension
until 1 June 2018 to conduct further technical evaluation work.
Group Financial Review
Overview
The Group began the year with the completion of an equity
financing which provided the investment capital for two work
programmes during the year. The work programmes comprised the
workover of existing wells to return them to production, facility
and infrastructure upgrades and the drilling of two sidetrack
wells.
In March, the completion of an asset acquisition in Canada saw
the realisation of a bargain consideration with the net profit of
$2.0 million booked to the profit or loss account as other
income.
In June, the Group announced the acquisition of production and
development assets in Italy subject to regulatory approval, which
is still outstanding. The accounting recognition of this
acquisition will occur following completion. The net benefit of the
production associated with these assets is accruing to the benefit
of the Group since 1 January 2017 and will be paid to the Group on
the completion of the acquisition.
An equity capital raise and the reacquisition of the 25 per
cent. of the Canadian assets owned by H2P was announced in
December, but did not complete until January 2018 and therefore has
no effect on the 2017 financial results.
Revenue and costs
Revenues increased in 2017 to $4.8 million (2016: $3.6 million)
due to a 42 per cent. increase in gross production, less 25 per
cent. which was sold to H2P, and a higher commodity price.
Production costs of $4.4 million (2016: $3.5 million) included
royalty costs of $0.7 million (2016: $0.4 million), maintenance
expense on infrastructure and Canadian and UK staff costs written
to operations.
A gross profit, before the deduction of depletion and
amortisation, of $0.3 million, or $3 per barrel, was realised in
2017. This is in line with management's expectation that the
Rainbow assets breakeven at approximately 400 bopd with a WTI
commodity price of $50 per barrel. Even with the increase in
operational activity, the increase in administration charges was
limited to $0.6 million, resulting in a total administrative
expense for 2017 of $2.9 million in 2017 (2016: $2.3 million).
During the year the clean up of a small amount of produced
saltwater, which mainly related to an old pipeline breach was
undertaken. The entire cost of this exercise, totalling $1.2
million, has been expensed to the income statement as other
operating expense. The Group has made a claim under its insurance
policy which is still ongoing and therefore the Group has not
recognised a sum in respect of the amount it expects to
recover.
Other operating income - Canadian asset acquisition
In March 2017, the Group announced the acquisition of a facility
and six wells in the Rainbow area. In consideration for the assets,
the Group assumed the abandonment liability associated with the
wells and facilities. The Group calculated that the fair value of
the assets and liabilities acquired exceeded the cost of purchasing
the assets by $2.0 million, which has been booked as a profit under
other operating income. This bargain consideration arose since the
vendor considered the assets to be non-core to their business.
Other operating expense - impairment and abandonment
Carrying values for intangible and tangible assets are grouped
into cash generating units and reviewed every year against market
values as calculated by independent reserve auditors, where
possible. If the carrying value is in excess of the estimated
market value, or an asset is no longer likely to be developed to
commerciality, an impairment is considered. The carrying value of
three single well batteries in Canada have been impaired. In
addition, costs incurred on two abandonment activities were in
excess of the provisions held on the balance sheet relating to
these abandonments and an increase in the provision for one well
was deemed necessary. All these costs, totalling $0.7 million, are
expensed to the profit or loss account.
The Group recorded a loss before tax for the year of $4.0
million (2016 loss of $2.5 million).
Balance Sheet
Investment in Canada was deployed over two work programmes and
contributed to the majority of the increase in property, plant and
equipment. The capital was used to workover wells and drill two new
sidetrack wells during the year. The increase of $7.6 million in
trade and other payables under current liabilities reflects the
costs incurred drilling the two new sidetrack wells during the last
quarter of 2017, which were not paid until after the year end. The
payables amount also includes the amounts owed by the Group's
partners in Canada, which is offset in the current trade and other
receivables balance.
Post year end
In January 2018, the Group closed the equity financing and open
offer announced in December 2017, raising equity capital of
approximately $16 million before expenses. The 2018 winter work
programme was conducted during the first quarter with four
sidetrack wells drilled and tested during January, February and
March. Unaudited cash on the balance sheet as at 31 March 2018 was
approximately $10.3 million.
Accounting policies
This financial information have been prepared by the Board using
accounting policies consistent with those used in 2016. There have
been no new or revised International Financial Reporting Standards
adopted during the year which have had a material impact on the
numbers reported.
Nick Morgan
Finance Director
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2017
Year ended Year ended
31 December 31 December
2017 2016
Notes $'000 $'000
--------------------------------------------------------------------- ------ ------------ ------------
Revenue 4,788 3,638
--------------------------------------------------------------------- ------ ------------ ------------
Production costs (4,448) (3,540)
Depletion and amortisation - property, plant and equipment (1,149) (686)
--------------------------------------------------------------------- ------ ------------ ------------
Cost of sales (5,597) (4,226)
--------------------------------------------------------------------- ------ ------------ ------------
Gross loss (809) (588)
Pre-licence costs / (charge) 84 (112)
Administrative expenses (2,903) (2,261)
Loss on disposal of subsidiaries and other assets - (231)
Other operating costs 2 (1,463) -
Other operating income 3 2,035 2,685
Impairment losses 4 & 5 (685) (1,670)
Loss from operations (3,741) (2,177)
Finance costs (274) (355)
Finance income 24 14
--------------------------------------------------------------------- ------ ------------ ------------
Loss before tax (3,991) (2,518)
Tax credit 857 5,544
--------------------------------------------------------------------- ------ ------------ ------------
(Loss) / profit for the year (3,134) 3,026
--------------------------------------------------------------------- ------ ------------ ------------
Other comprehensive income / (loss):
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 3,816 (52)
--------------------------------------------------------------------- ------ ------------ ------------
Other comprehensive loss for the year, net of income tax 3,816 (52)
--------------------------------------------------------------------- ------ ------------ ------------
Total comprehensive income for the year 682 2,974
--------------------------------------------------------------------- ------ ------------ ------------
(Loss)/ profit attributable to
Equity shareholders of the Company (3,164) 3,125
Non-controlling interests 30 (99)
--------------------------------------------------------------------- ------ ------------ ------------
(3,134) 3,026
--------------------------------------------------------------------- ------ ------------ ------------
Total comprehensive income / (loss) attributable to
Equity shareholders of the Company 652 3,073
Non-controlling interests 30 (99)
--------------------------------------------------------------------- ------ ------------ ------------
682 2,974
--------------------------------------------------------------------- ------ ------------ ------------
(Loss) / earnings per share
Basic (loss) / earnings per share on (loss) profit for the year (1.0 cents) 2.0 cents
--------------------------------------------------------------------- ------ ------------ ------------
Diluted (loss) / earnings per share on (loss) / profit for the year (1.0 cents) 2.0 cents
--------------------------------------------------------------------- ------ ------------ ------------
Consolidated Statement of Financial Position
as at 31 December 2017
2017 2016
Notes $'000 $'000
---------------------------------------------------- ------ -------- --------
Assets
Non-current assets
Intangible assets 4 28,470 24,553
Property, plant and equipment 5 22,252 10,814
Deferred tax assets 5,665 4,968
---------------------------------------------------- ------ -------- --------
56,387 40,335
Current assets
Inventories 296 109
Trade and other receivables 2,340 1,453
Cash and cash equivalents 1,775 6,584
---------------------------------------------------- ------ -------- --------
4,411 8,146
Total assets 60,798 48,481
---------------------------------------------------- ------ -------- --------
Liabilities
Current liabilities
Trade and other payables 10,290 2,678
Provisions 438 -
---------------------------------------------------- ------ -------- --------
10,728 2,678
Non-current liabilities
Trade and other payables 29 239
Provisions 8,430 7,221
Deferred tax liabilities 2,674 2,137
---------------------------------------------------- ------ -------- --------
11,133 9,597
Total liabilities 21,861 12,275
---------------------------------------------------- ------ -------- --------
Net assets 38,937 36,206
---------------------------------------------------- ------ -------- --------
Capital and reserves
Share capital 11,110 10,575
Share premium 23,655 22,390
Merger reserve 14,190 14,190
Share incentive plan reserve 335 377
Foreign currency translation reserve (5,162) (8,978)
Retained earnings and other distributable reserves (5,191) (2,306)
---------------------------------------------------- ------ -------- --------
Equity attributable to owners of the parent 38,937 36,248
---------------------------------------------------- ------ -------- --------
Non-controlling interests - (42)
---------------------------------------------------- ------ -------- --------
Total equity 38,937 36,206
---------------------------------------------------- ------ -------- --------
Consolidated Cash Flow Statement
for the year ended 31 December 2017
Year ended Year ended
31 December 31 December
2017 2016
Notes $'000 $'000
------------------------------------------------------ ------ ------------ ------------
Cash flows from operating activities
Loss before tax for the year (3,991) (2,518)
Depletion and amortisation 5 1,149 686
Depreciation - non-oil and gas property, plant
and equipment 4 & 5 33 142
Impairment losses on intangible assets 4 22 55
Impairment losses on property, plant and equipment 5 663 1,615
Loss on disposal of subsidiaries, investments
and property, plant and equipment - 231
Decommissioning and abandonment expenditure (241) -
Business acquisition expenses 2 265 -
Partial recovery of doubtful debts - (674)
Credit arising from bargain purchase of property,
plant and equipment 6 (2,035) (2,011)
Finance income (24) (14)
Finance charges 252 354
Foreign exchange loss 22 1
Share-based payments 251 90
------------------------------------------------------ ------ ------------ ------------
Net cash outflow before movements in working
capital (3,634) (2,043)
Increase in inventories (171) (95)
(increase) / Decrease in trade and other receivables (754) 85
Increase in trade and other payables 2,675 1,724
------------------------------------------------------ ------ ------------ ------------
Net cash inflow from changes in working capital 1,750 1,714
Cash outflow from operating activities
Cash outflow from operations (1,884) (329)
Interest received 24 14
Interest paid (4) (43)
Taxes paid - (14)
------------------------------------------------------ ------ ------------ ------------
Net cash outflow from operating activities (1,864) (372)
------------------------------------------------------ ------ ------------ ------------
Cash flows from investing activities
Purchase of property, plant and equipment 5 (3,462) (1,394)
Purchase of computer software 5 (53) -
Expenditure on exploration and evaluation assets 4 (659) (402)
Business acquisitions 6 (265) (382)
Sale of subsidiaries, net of cash disposed
of - (37)
Sale of property, plant and equipment - 1,896
Net cash outflow from investing activities (4,439) (319)
------------------------------------------------------ ------ ------------ ------------
Cash flows from financing activities
Proceeds from issue of ordinary shares 1,813 5,391
Costs and fees associated with the issue of
ordinary shares (27) (293)
Repayment of government loan (435) (380)
Capital contributions from non-controlling
interests 12 52
------------------------------------------------------ ------ ------------ ------------
Net cash inflow from financing activities 1,363 4,770
------------------------------------------------------ ------ ------------ ------------
Net (decrease) / increase in cash and cash
equivalents (4,940) 4,079
Cash and cash equivalents at start of year 6,584 2,417
Effect of exchange rate movements 131 88
------------------------------------------------------ ------ ------------ ------------
Cash and cash equivalents at end of year 1,775 6,584
------------------------------------------------------ ------ ------------ ------------
Consolidated Statement of Changes in Equity
for the year ended 31 December 2017
Retained
Share Foreign earnings
Share incentive currency and other Non -
Share premium Merger plan translation distributable controlling Total
capital account reserve reserve reserve reserves Total interests equity
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
----------------- -------- -------- -------- ---------- ------------ ---------------- ------- -------------- ---------
At 1 January
2017 10,575 22,390 14,190 377 (8,978) (2,306) 36,248 (42) 36,206
----------------- -------- -------- -------- ---------- ------------ ---------------- ------- -------------- ---------
Total
comprehensive
income /
(loss) for
the year - - - - 3,816 (3,164) 265 30 682
----------------- -------- -------- -------- ---------- ------------ ---------------- ------- -------------- ---------
Contributions by and distributions
to owners of the Company
Issue of
shares during
the year 521 1,292 - - - - 1,813 - 1,813
Costs and
fees associated
with share
issue - (27) - - - - (27) - (27)
Equity share
options
exercised 14 - - (285) - 271 - - -
Equity share
warrants
lapsed or
cancelled - - - (8) - 8 - - -
Share-based
payments - - - 251 - - 251 - 251
----------------- -------- -------- -------- ---------- ------------ ---------------- ------- -------------- ---------
Total
contributions
by and
distributions
to owners
of the Company 535 1,265 - (42) - 279 2,037 - 2,037
----------------- -------- -------- -------- ---------- ------------ ---------------- ------- -------------- ---------
Changes in ownership interests in
subsidiaries
Capital
contributions
from
non-controlling
interests - - - - - - - 12 12
----------------- -------- -------- -------- ---------- ------------ ---------------- ------- -------------- ---------
Total changes
in ownership
interests
in subsidiaries - - - - - - - 12 12
----------------- -------- -------- -------- ---------- ------------ ---------------- ------- -------------- ---------
At 31 December
2017 11,110 23,655 14,190 335 (5,162) (5,191) 8,937 - 38,937
----------------- -------- -------- -------- ---------- ------------ ---------------- ------- -------------- ---------
Notes to the Financial Information
for the year ended 31 December 2017
1. Basis of preparation
The financial information which comprises the Consolidated
Statement of Comprehensive Income, the Consolidated Statement of
Financial Position, the Consolidated Cash Flow Statement, the
Consolidated Statement of Changes in Equity and related notes is
derived from the full Group consolidated financial statements for
the year ended 31 December 2017, which have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the EU and those parts of the Companies Act 2006
applicable to companies reporting under IFRS.
The financial information has been prepared applying the
accounting policies and presentation that were applied in the
preparation of the Group's consolidated financial statements for
the year ended 31 December 2017 and are not the Group's statutory
accounts. The accounting policies are detailed in the Group's
consolidated financial statements for the year ended 31 December
2017 which will be presented on the Group's website
(www.cabot-energy.com).
The financial information set out above does not constitute the
Group's statutory accounts for the years ended 31 December 2017 or
2016. Statutory accounts for 2016 have been delivered to the
registrar of companies, and those for 2017 will be delivered in due
course. The auditor has reported on those accounts; their report
for the year ended 31 December 2017 was (i) unqualified, (ii) did
not include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under Section 498(2) or (3) of
the Companies Act 2006.
The functional currency of the Parent Company is considered to
be the US Dollar and the Group financial information is presented
in US Dollars.
Going concern basis of preparation
The Group's business activities, together with the factors
likely to affect its future development and performance are set out
in the Chairman's and Chief Executive Officer's Statement and the
Review of Operations. The financial position of the Group, its net
cash position and liabilities are described in the Group Financial
Review. Taking into consideration the Group's year end cash
position of $1.8 million, the capital raised in January 2018 and
future revenue from existing oil and gas fields, the Group has
adequate financial resources and the Directors believe that the
Group is positioned to meet the costs of the Group's current
financial commitments. The Board's review of the accounts, budgets
and financial plan lead the Directors to believe that the Group has
sufficient resources to continue in operation at least until the
end of 2019 and they will consider all forms of finance to further
accelerate growth if successful operations support increased
development. The financial information is therefore prepared on a
going concern basis.
2. Other Operating Costs
Year ended Year ended
31 December 31 December
2017 2016
Group $'000 $'000
------------------------------------------- ------------ ------------
Environmental remediation costs 1,198 -
------------------------------------------- ------------ ------------
Business acquisition expenses
Rockhopper Civita Limited (Italy) 196 -
H2P (NOP) UK Limited (Canada) 60 -
Other 9 -
------------------------------------------- ------------ ------------
Business acquisition and disposal expenses 265 -
------------------------------------------- ------------ ------------
1,463 -
------------------------------------------- ------------ ------------
Environmental remediation costs
During the year the Group discovered that one of the Rainbow
area pipelines acquired in late 2015 had suffered corrosion in the
past which had resulted in pin hole leaks. Fluid, mainly salt
water, had seeped into the surrounding earth . The Group's Canadian
subsidiary worked with the Alberta Energy Regulator and specialist
environmental contractors to clean up and remediate the effects of
the leaks. The cost of the clean up during 2017 was $1,198,000
(2016: $nil). The Group has made a claim under its insurance policy
which is still ongoing and therefore the Group has not recognised a
sum in respect of the amount it expects to recover.
Business acquisition costs
Rockhopper Civita Limited
On 8 June 2017, the Company announced the acquisition of
Rockhopper Civita Limited, a UK company with an Italian branch,
which owns onshore production and development gas assets in Italy
from Rockhopper Mediterranean Limited, a wholly owned subsidiary of
Rockhopper Exploration Plc.
The acquired assets comprise the Aglavizza production
concession, which contains the producing Civita gas field and
associated processing facilities and pipeline, a local operations
base, and the following production concessions, containing
suspended wells, and an exploration permit: Scanzano Concession
(100% interest), Torrente Celone Concession (50% interest), Monte
Verdese Concession (60% interest), San Basile Concession (85%
interest) and Civita Permit (100% interest / exploration).
Civita, which is tied into the national gas network, was
commissioned in late 2015 and averaged gas production of 130 boepd
during 2016. The field is estimated to contain approximately 1 bcf
of recoverable gas according to internal estimates. Rockhopper will
pay US$1.6 million on completion of the acquisition as a partial
contribution to the abandonment liabilities transferred. This is
subject to inter alia Italian regulatory approval and is expected
to occur in 2018. The acquisition has an economic effective date of
1 January 2017. Legal and professional expenses of $196,000
incurred during 2017 in relation to the proposed acquisition have
been expensed as incurred in accordance with IFRS 3 "Business
Combinations".
High Power Petroleum (NOP) UK Limited ("H2P NOP") and its 100%
subsidiary High Power Petroleum Canada Limited ("H2P Canada")
On 19 December 2017 the Group announced that it had agreed
acquire, H2P NOP, and by doing so take 100% control of its Canadian
production and development portfolio in the Rainbow and Virgo
regions of north west Alberta through the indirect acquisition of
H2P NOP's 100% subsidiary H2P Canada, the holder of 25% of the
Canadian Assets; and an option held by H2P to acquire a further 25%
of the Canadian Assets at an exercise price of $4.0 million (the
"H2P Option").
The consideration of $8.7 million for the acquisition was based
upon 50% of the net present value, at a 10% discount rate, of the
proven reserves as calculated by McDaniel & Associates Ltd in
their report dated 30 September 2017; less the cost of exercising
the H2P Option; and less certain long term abandonment liabilities
and taxes. No adjustment was made to the consideration for the
fourth quarter 2017 production from the Canadian Assets.
The acquisition was subject to shareholder approval which was
given at the general meeting held on 5 January 2018. Gross
production, cashflow and reserves from the project will accrue to
the Company from 1 January 2018. Legal and professional expenses of
$60,000 incurred during 2017 in relation to the proposed
acquisition have been expensed as incurred in accordance with IFRS
3 "Business Combinations".
3. Other Operating Income
Year ended Year ended
31 December 31 December
2017 2016
Group $'000 $'000
------------------------------------------------------------------- ------------ ------------
Bargain consideration on purchase of plant property and equipment 2,035 2,011
Partial recovery of debtor previously impaired - 674
------------------------------------------------------------------- ------------ ------------
Total 2,035 2,685
------------------------------------------------------------------- ------------ ------------
On 8 March 2017 the Group's Canadian subsidiary Cabot Energy
Inc. acquired a number of Rainbow area leases in Alberta, Canada.
In accordance with IFRS 3 "Business Combinations", the assets
acquired were recognised at their fair value using an internal
financial model based on information from the Group's due
diligence. A discount rate of 10% was used in the fair value
calculation. The Group calculated that the fair value of the assets
acquired exceeded the cost of purchasing the assets by $2,787,000,
the bargain consideration. On acquisition the assets have been
included at their fair value in plant, property and equipment and
the value of the bargain consideration has been credited to the
statement of comprehensive income as part of other operating
income. A deferred tax liability of $752,000 in respect of
temporary differences arises on the bargain consideration and has
been netted from the total shown above.
During the prior year, on 21 January 2016 the Group's Canadian
subsidiary Cabot Energy Inc. acquired a number of Rainbow area
leases in Alberta, Canada. The Group calculated that the fair value
of the assets acquired exceeded the cost of purchasing the assets
by $2,730,000, the 2016 bargain consideration. A deferred tax
liability of $719,000 in respect of temporary differences arose on
the bargain consideration was netted from the total shown
above.
In March 2017 the Group received a payment of EUR608,000
($674,000) in respect of a debtor arising from the drilling of the
Savio 1x well in Italy. The Savio 1x debtor had been written off,
transferred to intangible assets and then subsequently impaired in
the 2014 accounts, as both the timing and recoverability of the
debtor were uncertain. With the recovery of EUR608,000 in 2017,
this amount was recognised as a debtor at 31 December 2016 and a
credit recorded in other income.
4. Intangible Assets
a) Exploration and Evaluation Assets
Intangible assets consist of the Group's exploration projects
which are pending determination of technical feasibility and
commercial viability of extracting a mineral resource.
French
Italy Canada Guiana Other incl. Australia Total
Group $'000 $'000 $'000 $'000 $'000
------------------------------------- ------- ------- -------- ---------------------- -------
Cost
At 1 January 2017 23,398 3,228 36,314 1,120 64,060
Additions 275 363 (2) 23 659
Disposals - - - (157) (157)
Exchange movement 3,277 248 - 78 3,603
-------------------------------------- ------- ------- -------- ---------------------- -------
At 31 December 2017 26,950 3,839 36,312 1,064 68,165
-------------------------------------- ------- ------- -------- ---------------------- -------
Exploration expenditure written off
At 1 January 2017 2,073 - 36,314 1,120 39,507
Disposals - - - (157) (157)
Impairment losses 1 - (2) 23 22
Exchange movement 287 - - 78 365
-------------------------------------- ------- ------- -------- ---------------------- -------
At 31 December 2017 2,361 - 36,312 1,064 39,737
-------------------------------------- ------- ------- -------- ---------------------- -------
Net book value
At 31 December 2017 24,589 3,839 - - 28,428
-------------------------------------- ------- ------- -------- ---------------------- -------
The disposals in Other of $157,000 arise from expiry of licences
in Spain operated by third parties over which the Group had certain
royalty interests.
The Group tests intangible assets for impairment when there is
an indication that assets might be impaired. In performing
impairment tests the Group compares the carrying value of
intangible assets to their recoverable amount and also where the
Group has tangible oil and gas assets with commercial reserves, the
carrying value is compared to recoverable amount of both intangible
and tangible assets. An additional impairment loss of $23,000 has
been recognised against the costs capitalised in respect of the
Australian PEL629 licence. The licence is currently in suspension.
Following the drilling of a successful well on the adjoining
licence in January 2018, the Directors are considering bringing the
licence out of suspension. An additional impairment loss of $1,000
has been recognised against the costs capitalised in respect of the
Sicily Channel licences, CR146 and CR149. These licences are
currently in suspension awaiting Italian Environment Ministry
approval to drill a well.
The carrying value of the permits in the southern Adriatic has
not been impaired based on the potential value of the permits
following any successful exploration and appraisal, and the
continued level of interest in the permits by industry
participants. An impairment reversal credit of $2,000 has been
recognised against the French Guiana cost pool. The French Guiana
permit expired in June 2016 and the Group is considering ways to
monetise the value of the data owned by its 55.9% subsidiary,
Northpet Investments Limited. In the meantime the Directors have
decided to continue to fully impair the French Guiana cost pool. In
line with the Group's accounting policy for intangible E&E
assets, the Directors have assessed the carrying value of the
Canadian E&E assets and have concluded that that there are no
facts or circumstances to suggest that the carrying value of the
assets exceeds its future recoverable amount.
At the year end the contractual commitments for capital
expenditure in respect of intangible assets in Italy was $138,000
(2016: $nil), of which the Group's share was $138,000 (2016:
$nil).
The comparative tables for 2016 are detailed below:
Italy Canada French Guiana Other incl. Australia Total
-------------------------------------
Group $'000 $'000 $'000 $'000 $'000
------------------------------------- ------- -------- -------------- ---------------------- --------
Cost
At 1 January 2016 23,990 3,881 36,289 1,116 65,276
Additions 91 267 44 - 402
Disposals - (1,042) - - (1,042)
Exchange movement (683) 122 (19) 4 (576)
-------------------------------------- ------- -------- -------------- ---------------------- --------
At 31 December 2016 23,398 3,228 36,314 1,120 64,060
-------------------------------------- ------- -------- -------------- ---------------------- --------
Exploration expenditure written off
At 1 January 2016 2,122 - 36,289 1,116 39,527
Impairment losses 11 - 44 - 55
Exchange movement (60) - (19) 4 (75)
-------------------------------------- ------- -------- -------------- ---------------------- --------
At 31 December 2016 2,073 - 36,314 1,120 39,507
-------------------------------------- ------- -------- -------------- ---------------------- --------
Net book value
At 31 December 2016 21,325 3,228 - - 24,553
-------------------------------------- ------- -------- -------------- ---------------------- --------
An impairment loss of $11,000 was recognised against the costs
capitalised in respect of the Sicily Channel licences, CR146 and
CR149. These licences are currently in suspension awaiting EIA
approval to drill a well. The carrying value of the permits in the
southern Adriatic was not impaired based on the potential value of
the permits following any successful exploration and appraisal, and
the continued level of interest in the permits by industry
participants. An impairment loss of $44,000 was recognised against
the French Guiana cost pool. The French Guiana permit expired in
June 2016 and the Group is considering ways to monetise the value
of the data owned by its 55.9% subsidiary, Northpet Investments
Limited. In the meantime the Directors decided to continue to fully
impair the French Guiana cost pool. In line with the Group's
accounting policy for intangible E&E assets, the Directors have
assessed the carrying value of the Canadian E&E assets and
concluded that that there were no facts or circumstances to suggest
that the carrying value of the assets exceeds its future
recoverable amount.
b) Computer software
Computer software
Group and Company $'000
--------------------- ------------------
Cost
At 1 January 2017 441
Additions 53
--------------------- ------------------
At 31 December 2017 494
--------------------- ------------------
Amortisation
At 1 January 2017 441
Charge for the year 11
--------------------- ------------------
At 31 December 2017 452
--------------------- ------------------
Net book value
At 31 December 2017 42
--------------------- ------------------
At 31 December 2016 -
--------------------- ------------------
5. Property, Plant and Equipment
a) Oil and Gas Assets
Canada Canada
Developed Undeveloped Total
Group $'000 $'000 $'000
---------------------------- ---------- ------------ -------
Cost
At 1 January 2017 24,873 57 24,930
Additions 8,064 - 8,064
Changes in estimates 260 50 310
Acquisitions 3,581 - 3,581
Exchange movement 2,362 - 2,362
------------------------------- ---------- ------------ -------
At 31 December 2017 39,140 107 39,247
------------------------------- ---------- ------------ -------
Depletion and amortisation
At 1 January 2017 14,097 57 14,154
Charge for the year 1,149 - 1,149
Impairment losses 613 50 663
Exchange movement 1,079 - 1,079
------------------------------- ---------- ------------ -------
At 31 December 2017 16,938 107 17,045
------------------------------- ---------- ------------ -------
Net book value
At 31 December 2017 22,202 - 22,202
------------------------------- ---------- ------------ -------
Canadian developed acquisitions of $3,581,000 in the year relate
to the fair value of Rainbow assets acquired in March 2017,
including the associated abandonment liabilities. Developed
additions in the year of $8,064,000 relate to the Rainbow assets as
the Group invested in increasing production.
Changes in estimates in the year of $310,000 relates to changes
in abandonment liabilities for the Rainbow and Virgo area wells,
reflecting either increased estimates for changes in the condition
of wells or actual costs incurred in abandonment over and above the
original estimates. The Group matches abandonment estimates
calculations made by the Alberta Energy Regulator ("AER") in
measuring operators' liabilities for abandonment in the
province.
2017 Impairment
The Group tests assets for impairment when there is an
indication that assets might be impaired. In performing impairment
tests the Group compares the carrying value of property, plant and
equipment cash generating units to their recoverable amount. Four
wells which are in the process of being abandoned and have no
reserves were fully impaired by $239,000 as a result of writing off
increases in their carrying value brought about as a result of the
changes in estimates for abandonment. Two wells were impaired by a
total of $424,000 to their value in use where capital expenditure
was incurred, but reserves did not subsequently increase and
further work is required, but is not included in current work
programmes. All impairments were calculated using a value-in-use
technique with post-tax cash flows calculated based on proven and
probable reserves using a post-tax discount rate of 10%. The oil
price per barrel used was a weighted average over the overall life
of the field of $76 per barrel (WTI) based on prices ranging from
$53 in Q4 2017 to $89 beyond 2031.
At the year end the contractual commitments for capital
expenditure in respect of property, plant and equipment was $nil
(2016: $nil), of which the Group's share was $nil (2016: $nil).
6. Rainbow acquisition
On 8 March 2017, the AER transferred a number of additional
Rainbow area leases in Alberta, Canada to the Group's Canadian
subsidiary, Cabot Energy Inc. ("CEI") following the deposit by CEI
with the AER of approximately $0.7 million. CEI assumed a 75%
interest in the leases, with High Power Petroleum Canada Limited,
CEI's existing Canadian partner, acquiring the other 25%. The
payment of an abandonment deposit to the AER was a final step in
the regulatory approval of the acquisition of the leases following
the payment of a nominal cash consideration to the vendor. The
acquisition of the additional Rainbow leases has enabled the Group
to increase its asset base in Alberta and add additional processing
and oil handling capacity in the same area as CEI's existing
assets. The new Rainbow assets include a total of six operated
production wells a water disposal well and their associated
facilities. All the wells were suspended at the time of acquisition
and the Group has brought, or has plans to bring, all wells back
into production. Five of the wells were brought back into
production between March and September 2017.
The assets acquired are an integrated set of activities and
assets that are capable of being conducted and managed for the
purpose of providing a return. In accordance with IFRS 3 "Business
Combinations", the assets acquired were recognised at their "fair
value" using an internal financial model based on information from
the Group's due diligence. A post tax discount rate of 10% was used
in the fair value calculation. This represents a Level 3 valuation
in the IFRS 13 fair value hierarchy as it is based on certain
judgements and estimates made by the Directors. The Group
calculated that the fair value of the assets and liabilities
acquired exceeded the cost of purchasing the assets by $2,787,000,
the "bargain consideration" and was credited to the statement of
comprehensive income. It is likely that the bargain consideration
arose because the vendor, who is a large group, had decided to sell
a non-core business for strategic reasons and after trying to
dispose of the business for a number of years, was minded to accept
an offer lower than the fair value of the business in order to
divest itself of the risks and responsibilities of ownership. On
acquisition the assets have been included at their fair value in
plant, property and equipment and the value of the bargain
consideration has been credited to the statement of comprehensive
income as part of other operating income. A deferred tax
liability of $752,000 was recognised and offset against the
bargain consideration. The liabilities include the provisions for
future abandonment of the wells and facilities.
Consideration:
8 March 2017
$'000
----- --------------------
Cash -
----- --------------------
Identifiable assets acquired and liabilities assumed:
8 March 2017
Recognised
values on acquisition
$'000
------------------------------------------------------------------------- -----------------------
Property, plant and equipment - oil & gas assets 3,581
Provisions (794)
Deferred tax liability (752)
Bargain consideration credited to the statement of comprehensive income (2,035)
--------------------------------------------------------------------------- -----------------------
-
------------------------------------------------------------------------- -----------------------
No significant acquisition related costs have been incurred.
The revenue generated and expenses incurred by this operation
since the date of acquisition (8 March 2017) were $806,000 and
$903,000 respectively. Of the $903,000 expenses, $538,000 relates
to production costs, $344,000 relates to depletion and amortisation
of plant property and equipment and $21,000 relates to finance
costs for the unwinding of discount on decommissioning provisions.
Cash outflow from the operation post acquisition was $426,000 and
comprised net revenue and investments in oil and gas assets. If the
acquisition had occurred on 1 January 2017, management estimates
that consolidated revenue would have been no higher and the
consolidated costs for the year would have been $10,000 higher as
the wells were suspended at the start of the year.
7. Post Balance Sheet Events
Between the balance sheet date of 31 December 2017 and the date
that the 2017 financial information has been signed, the following
developments have been announced which have a material impact on,
or the understanding of, this financial information:
On 19 December 2017 the Group announced that it had agreed,
subject to shareholder approval, to take 100% control of its
Canadian production and development portfolio in the Canadian
Assets by acquiring the remaining 25% held by H2P and the H2P
Option.
The agreed consideration of $8.7 million for the acquisition was
based upon 50% of the net present value, at a 10% discount rate, of
the proven reserves as calculated by McDaniel & Associates Ltd,
less the cost of exercising the H2P Option, and less certain long
term abandonment liabilities and taxes. $1.75 million of the
consideration is payable in cash in 12 instalments during 2018, the
balance being settled by the issue of new 1 pence Ordinary Shares
in the Company.
At the same time the Group announced an equity capital raise
comprising a subscription with H2P, a placing of Ordinary Shares,
and an open offer on the basis of 1 Open Offer Share for every 8
existing 1 pence Ordinary Shares. The funds raised were proposed to
be invested in the winter and summer work programmes in Canada with
the objective of substantially increasing production by the end of
2018. The Issue Price of 5 pence per Ordinary Share represented a
discount of 2.5% to the closing mid-market price of 5.125 pence on
18 December 2017.
The acquisition was subject to takeover panel and shareholder
approval which was given at the general meeting held on 5 January
2018. 100% of gross production, cashflow and reserves from the
project will accrue to the Group from 1 January 2018. On 8 January
2018 310,996,081 new shares were admitted to trading on AIM and on
16 January 2018 the 21,634,406 open offer shares were admitted to
trading on AIM. The total amount raised was approximately $16
million before expenses.
Following the subscription, H2P hold a 58.09% interest in the
Company and became the parent company of Cabot Energy Plc. H2P is
itself part of the I-Pulse Inc. Group and as such the Company's
ultimate parent company is now I-Pulse Inc, whose registered office
is 2711 Centerville Road, Suite 400 Wilmington, DE 19808 USA (for
further information on I-Pulse Inc. see
https://www.ipulse-group.com/).
As a result of its increased shareholding, H2P became eligible
for a further board member. Petro Mychalkiw was appointed to the
Board in January 2018. As part of the new agreement with H2P, the
remuneration of H2P appointed Non-Executive directors will be borne
by the Company from 1 January 2018.
Availability of Annual report and accounts and investor
presentation
The Group's Annual report and accounts and the notice of the
annual general meeting of the Company will be dispatched to
shareholders as soon as is practicable. Copies will also be
available on the Company's website www.cabot-energy.com and on
request from the Company at, Chester House, Unit 3.01, Kennington
Park, 1-3 Brixton Road, London SW9 6DE. The latest presentation for
investors is also available on the Company's website.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ILMBTMBBBMMP
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