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I have learned a lesson here....good luck to all CAB PI's.
best of luck and the BoD 1000x the Karma.
What a bunch of incompetent, criminal bandits.
Every fan AIM BoD are lying incompetent ****s hope the get screwed over one day. Bloody thieves don't give an f about small investors.
Bargain takeover of the remainder for hpp, screws everyone else and no way to stop it.
Worse Halloween fright
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
But im not complaining. Looking forward what Cabot can do
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.
High Power Petroleum as the largest CAB shareholder (72.21% of the issued shares) have to keep propping Cabot Energy up, they have the most to lose.
It will be interesting to see whether the other large shareholders take up their allocation in October's Open Offer, my reading of last week's RNS is High Power Petroleum are prepared to invest the capital required to complete the Summer work plan. Once the remediation work is completed, oil production should rise & then the Canadian $5 million loan should be released to undertake the Winter drilling campaign.
The Italian Government will have to decide what to do about offshore oil exploration in 2020, for now Cabot Energy's future lies in the Canadian oil wells.
GLA
Converting the figures in my previous post to Gross British Pounds :-
US$48.3 million = circa GBP 39.12 million
C$5.0 million = circa GBP 3.1 million
Annual Reserves and Resources Report - 6 November 2018
https://polaris.brighterir.com/public/cabot_energy/news/rns/story/ryqm18w
"The net present value (before tax) using a 10% discount rate, of the 2P reserves is US$48.3 million to the company" RNS 6 Nov 2018.
The private energy lender which is providing the non recourse, asset loan (C$5 million) to fund the winter programme, has clearly done its Due Diligence on Cabot Energy.
Sounds great Trde .... shame is we now need 32% to recover todays 25% drop and with many AIM shares, that can take ages just to be back to square one from this morning.
GROWING PRODUCTION
150,000 barrels of oil produce in 2017411 boepd average production in 2017
STRENGTHENING ECONOMICS
26% increase in gross reserves and 339% increase in net resources over prior yearEfficient allocation of capital resources to fulfill the Company’s growth plans
Major shareholders
NameHigh Power Petroleum LLCShares33,103,569per cent of issued
72.21%
NameD Maritime LimitedShares1,695,314per cent of issued
3.70%
NameCavendish Asset Management LimitedShares1,521,037per cent of issued
3.32%
NameNortheastern Oilfield Services LimitedShares1,448,687per cent of issued
3.16%
The test of Cobalt’s business model is taking place today at the frontiers of oil exploration.
In the 2007 and 2008 U.S. Gulf of Mexico lease sales, Cobalt captured a substantial and highly prospective acreage position, locking up a 10-year controlling position in high potential deepwater, sub-salt exploration plays in the ‘heart’ of the U.S. Gulf of Mexico’s deepwater Miocene and inboard Lower Tertiary trends. Cobalt has spent more than $600 million to build this portfolio of opportunity. In only three years Cobalt established itself as major player in the deepwater U.S. Gulf of Mexico.
Cobalt is also an early entrant in offshore West Africa’s highly potential and enormous pre-salt opportunity through the focused capture of a significant acreage position in Gabon and Angola. Offshore West Africa is an area where Cobalt team members have vast experience in hydrocarbon exploration, development and production.
I'm pleased to see this move up so quickly. Open Offer @ 3p per share in October 2019 plus the agreed new loan should fund Summer & Winter drilling programmes which in turn should give a much needed lift in oil production.
GLA
its not big sell 5p 80k just gone through
£2.5k 5.5p no problem but this looks scary funding wise