Cabot Energy Share News (CAB)

(Sharecast News) - Oil and gas company Cabot Energy updated the market on its financial position, operations and trading for the quarter ended 31 March on Wednesday, reporting a fall in revenue to $2m from $3.4m year-on-year.The AIM-traded firm said it averaged gross production of 511 barrels of oil per day during the first quarter, down from 725 bopd.Its average crude oil sales price was approximately $44 per barre, down from $51, with an average Edmonton Light Oil price discount to the West Texas Intermediate price of around 9%, reflecting the restoration of the historic price differential.At current crude oil sales prices, Canadian operations remained cash flow positive, including the continuing settlement of overdue Canadian trade creditors with whom the group secured voluntary binding agreements in January.On the financial front, the company reported that in March, it successfully raised £2.53m in gross proceeds from a subscription and open offer which, together with the sustained improvement in the Edmonton price since February, would reportedly provide sufficient working capital for the group through to the end of May.Unaudited group cash on the balance sheet totalled $0.3m as at 13 Ma, down from $0.9m at the end of December.Cabot Energy noted that it had engaged a specialist financial advisory firm to source Canada asset-level debt finance for the development drilling of its proven and probable reserves in the country, starting with a fully-funded 2019 summer work programme.It said that, while the company's management remained confident that the debt finance discussions would result in a successful outcome, no debt commitments had yet been secured.The company's supportive majority shareholder, High Power Petroleum, had indicated its willingness to provide limited short-term funding, pending the satisfactory progression of the ongoing debt finance discussions, the board added."The first quarter of 2019 has seen the Edmonton oil price rebound strongly towards its historic price differential with WTI," said chief executive officer Scott Aitken."Crude sales prices were therefore significantly above our planning assumption and this, alongside tight cost control and anticipated short-term funding from H2P, has provided us with a longer period to negotiate the debt funding for the planned drilling and workover operations in the summer."We look forward to updating the market as soon as practicable, although no assurances can be given at this stage that the debt financing discussions will result in a successful outcome for the group."