LONDON (Alliance News) - Cabot Energy PLC on Thursday said it remains hopeful for positive outcomes on its Italian licences despite new legislation.
The stock was down 50% on Thursday afternoon at a price of 0.15 pence each.
On Tuesday, the Italian government passed a decree suspending work on any new oil and gas exploration permits and applications while a review is carried out.
The review is expected to take up to 18 months, and suspension will be lifted when consensus is reached over how to proceed with exploration or after 24 months.
Cabot has five permits and seven applications currently in progress in Italy, and it will be able to seek compensation for all exploration costs carried out to date.
"This new legislation is not a ban on exploration. It allows the Italian government to reappraise the exploration licences it has granted. Cabot Energy will ensure the company is prepared to rapidly progress our licences as soon as the review is completed, whenever that occurs within the next 18 months," said Chief Executive Scott Aitken.
"Cabot Energy's focus remains the funding of a scalable and repeatable development drilling programme in Canada," Aitken continued.
"We will continue to work with the authorities in Italy and remain hopeful of either securing a positive outcome for our exploration licences or receiving appropriate compensation at the end of the two-year assessment period."
