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The Open Offer has not be issued this month, I wonder whether the Summer Work Programme has boosted production / revenue? I remain hopeful....
GLA
The US $7.0 million loan equates to c. GBP 5.67 million, so the Specialist Lender is providing a loan of nearly 3x Cabot Energy's current market capitalisation (GBP 2 million). The oil is in the ground, the planned programmes should ramp oil production up in the coming months.
GLA.
Scott Aitken, Chief Executive Officer, commented: "Our focus in the first half of 2019 was to source short- and long-term finance to rebuild the Company's balance sheet from the cost overruns in 2017 and the first half of 2018 and to fund our strategy for growth. We were able to maintain production costs at approximately US$20/bbl through rigorous cost controls despite being unable to invest in non-safety critical activity to arrest the natural production decline. This cost control, alongside short-term funding from H2P and the return of the Edmonton oil price towards its historic price differential with West Texas Intermediate, gave the Company time to secure longer term debt funding, announced on 2 September 2019.
"With a term sheet for asset level funding in place, we have initiated a Summer Work Programme of up to ten well workovers and stimulations, planned to be followed by a Winter Work Programme of drilling up to four new horizontal development wells, totalling a minimum US$7.0 million investment". Source: RNS 30 September 2019
Maybe, just maybe, the "Summer work programme" marks the start of a Cabot Energy turnaround. As I understand it, the private energy lender has set conditions regarding production levels before it will release the C$5 million loan for the "Winter Work Programme".
I plan to participate in next month's Open Offer, average down and then hopefully sell out on future SP rises.
GLA
Like many AIM shares. They start here to ensure directors remuneration and if they and us are lucky, it becomes a prosperous company ... but mostly not ;o))))
The problem is the company are just burning cash and not showing any value to shareholders. So much for cost saving!
Open Offer and thank them for their continued support - there is no guarantee that the SP wont tank after that.
If they want to thanks us for the support, get the damn SP up and give us something to work with.
James Dewar, Interim Non-Executive Chairman, commented: "We would like to thank H2P for their continued support which follows the H2P US$0.3 million equity subscription to fund the commencement of the Summer Work Programme and the proposed asset-level loan facility of up to C$5.0 million with a private energy lender to debt-fund the Winter Work Programme, both of which were announced earlier this month. We look forward to providing our other shareholders with the opportunity to participate in an equity fundraising via an Open Offer and thank them for their continued support."
The sooner the "Summer Work Programme" start the better, oil production needs to rise in order for CAB to receive the C$5 million loan.
... the directors salaries have to be secured somehow I guess.