LONDON (Alliance News) - Cabot Energy PLC said Wednesday its production for 2018 is expected to be below previous guidance as it suspended its Canada summer drilling programme.
Cabot said it would suspend the summer programme whilst it "fully integrates" the data it collected from its winter drilling programme. The company wants to "confirm" the production performance of its new wells over an extended period of time.
The oil & gas exploration company also had to invest additional capital in the infrastructure of its Rainbow assets in north west Alberta, including pipeline replacement and integrity work, abandonments and well workover activity.
Average production during April was 851 barrels of oil per day and average sales were 914 bopd.
Shares in Cabot Energy were down 12% Wednesday to 4.20 pence each.
Chief Executive Officer Keith Bush said: "Understanding the performance of the new wells is important for the long-term development of the Rainbow assets and the deferral of the summer work programme is a prudent step to maximise oil recovery over the medium to long term.
"The valuable lessons learned from the winter drilling programme will enable more cost effective well options to be developed, including the drilling of new wells as opposed to side track wells, which is expected to improve the development of the area."