(Alliance News) - Cabot Energy PLC on Monday said lower production costs resulted in a narrowed loss in the first half of 2019.
The Canada-focused oil and gas exploration company also said that its financial position remains delicate. Until Cabot secures additional equity funding in October and completes on the new debt to fund its winter work programme, there remains a material uncertainty over the company's ability to meet future obligations or operate as a going concern, it said.
Cabot, in the first half, raised USD850,000 in total via two separate share subscription pacts with shareholder High Power Petroleum, which has committed to invest a further USD350,000 in October. The company's subsidiary, Cabot Energy Inc, also secured a CAD5.0 million, about USD3.8 million, loan from a Calgary-based private energy lender to complete a winter work programme. Cash balance at September 27 stood at USD300,000.
For the six months to June 30, Cabot Energy's recorded a pretax loss of USD1.3 million, sharply narrowed from USD3.5 million in the year ago period. Production costs fell 44% year-on-year to USD2.5 million due to a focus on operational efficiencies and cost controls.
Revenue fell 46% year-on-year to USD4.1 million from USD7.5 million on drop in production and lower oil sale prices.
First half production averaged 485 barrels of oil per day, down from 761 a year ago. Oil sale prices fell to USD46 per barrel in the first half from USD53 a year ago.
The company said its future strategy remains on building the Canadian prospects, generating cashflow to support a move towards a future dividend policy and to explore upside potential in offshore Italy.
Cabot Energy shares were down 4.7% at 3.58 pence each in London on Tuesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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