LONDON (Alliance News) - Cabot Energy PLC on Thursday reported increased revenue but a widened loss for 2017 as it progresses both its Canadian and Italian assets.
Revenue for the year increased 33% to USD4.8 million from USD3.6 million, while Cabot's pretax loss increased to USD4.0 million from USD2.5 million, mainly due to a USD1.2 million cost of cleaning up a leaking pipeline.
Cabot has producing assets in Canada, as well as exploration and appraisal sites in Italy. It also has a "large" onshore exploration permit in South Australia.
2017 was a "year of progress", it said, as the oil industry improved supported by increasing commodity prices. During the year it carried out an "ambitious" work programme, leading to production more than doubling by the end of 2017 on a year earlier.
Average annual gross production in 2017 increased 42% to 411 barrels of oil a day, while in December, gross average production almost tripled to 653 barrels of oil a day from the figure in December 2016.
During the year Cabot worked over 30 wells, bringing them back into production, and drilled two new sidetrack wells to production.
Looking to 2018, Cabot said money raised means it can pursue an "aggressive" development programme. It again aims to double production by the end of the year and it has six sidetrack wells planned.
Exit rate guidance for 2018 is between 1,600 barrels and 2,000 barrels of oil a day, and an average rate for the year of 1,000 barrels to 1,200 barels of oil a day.
Chief Executive Keith Bush said: "The group has made great progress throughout 2017, both in the development of the Canadian assets and by steadily moving the Italian assets through the regulatory process.
"The significant increase in production in Canada, fundamental to the group strategy, is evidence of the potential of the assets. With progress accelerating in 2018, production is on target to double again by the end of this year and will provide significant positive cashflow for investment both in Canada and in other group assets."
Cabot shares were up 5.1% on Thursday at 4.78 pence each.