LONDON (Alliance News) - Oil and gas company Cabot Energy PLC on Tuesday reported its total reserves and resources for its production and development assets in Canada.
Shares in Cabot rose 13% at 1.80 pence on Tuesday.
Net Proven and Probable reserves as at September 30 was 3.6 million barrels of oil equivalent , reflecting a 26% increase from the year before, with 90% of Probable reserves upgraded to Proven.
Net proven and probable reserves plus mid-case contingent and prospective resources of 42.2 million barrels, an increase of 750,000 million barrels.
Pretax net present value using a 10% discount rate of the reserve is USD48.3 million to Cabot, or USD13.4 per barrel of oil equivalent.
"This outcome reflects the efforts of the new management team that have studied and documented the Canadian subsurface and surface facilities as a priority for the company and the increases announced today reflect these activities. We are now focussed on structuring the balance sheet to fund a scalable and repeatable development drilling programme in Canada," said Chief Executive Officer Scott Aitken.
"Additionally, an independent resources report on our 100% owned and operated, high-impact offshore Italian exploration acreage is currently being finalised and we continue to make progress on farm-out negotiations to fund our exploration activities," Aitken added.