Cabot Energy Regulatory News (CAB)

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. With the publication of this announcement, this information is now considered to be in the public domain.

5 June 2019

Cabot Energy Plc

("Cabot", the "Group" or the "Company")

Funding Arrangement and the Issue of New Shares

Further to the statement made in its Full Year Results announcement on 3 June 2019, Cabot Energy Plc (AIM: CAB), the AIM quoted oil and gas company focussed on creating predictable production growth in Canada, provides the following funding update.

The Company is pleased to announce that it has agreed a financial arrangement with its majority shareholder, High Power Petroleum LLC ("H2P"), which generates sufficient funding for working capital purposes until the end of June 2019 (the "Funding Arrangement").

Under the terms of the Funding Arrangement, H2P will accelerate the final payment of US$150,000 (approximately £118,110) to Cabot to convert a commitment owed by H2P to the Group, to fund well stimulation services provided by Blue Spark Energy Inc., an affiliate of H2P, pursuant to a share purchase agreement between the parties dated 29 November 2016.

Additionally, H2P has agreed to accept 918,630 new ordinary shares of 1p each in the capital of the Company ("Ordinary Shares") at 10 pence per share, consistent with the closing price of the Ordinary Shares on AIM on 4 June 2019 (the "New Ordinary Shares") as settlement for outstanding deferred consideration of US$116,666 (approximately £91,863) owed to it by Cabot pursuant to a share purchase agreement between the parties dated 17 December 2017. Cabot will also issue 524,210 New Ordinary Shares to H2P in satisfaction of £52,421 owed to H2P by Cabot for third-party London office rental recharges.

Related Party Transaction

H2P is a substantial shareholder in the Company and therefore the Funding Arrangement between Cabot and H2P constitutes a related party transaction in accordance with AIM Rule 13. James Dewar, Rachel Maguire and Paul Lafferty who are independent Directors for these purposes, having consulted with the Company's Nominated Adviser, consider the terms of the Funding Arrangement between Cabot and H2P, as a related party, to be fair and reasonable insofar as all of Cabot's shareholders are concerned.

Admission of the New Ordinary Shares and Total Voting Rights

Application has been made to London Stock Exchange for 1,442,840 New Ordinary Shares to be admitted to trading on AIM ("Admission"). These shares will rank pari passu with existing Ordinary Shares in all respects. It is expected that Admission will occur and that dealings in the new Ordinary Shares will commence at 8.00 a.m. on 10 June 2019.

Following the issue of the New Ordinary Shares, H2P will have an interest in 20,637,037 Ordinary Shares which represents 61.83 per cent of the issued share capital of the Company as enlarged by the issue of the New Ordinary Shares. Following the issue of the New Ordinary Shares, the Company will have 33,378,590 Ordinary Shares in issue and no shares are held in treasury.

Accordingly, this figure will be the total number of voting rights in the Company and may be used by Shareholders as the denominator for the calculations by which they determine whether they are required to notify their interest in, or change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

James Dewar, Interim Non-Executive Chairman, commented: "The Board appreciates the ongoing support of H2P. The Company continues to work with the specialist financial advisory firm it has engaged to source Canada asset-level debt financing to ensure full funding to commence the 2019 summer work programme and support the future growth of the Company. Whilst the Board remains confident that the debt finance discussions will result in a successful outcome for the Group, no debt commitments have yet been secured. I look forward to providing Cabot's shareholders with further updates regarding these discussions as appropriate."

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Note to Editors:

Cabot Energy Plc (AIM: CAB) is an oil and gas company focussed on creating predictable production growth in Canada. Comprehensive information on Cabot and its oil and gas operations, including press releases, annual reports and interim reports are available from Cabot's website: www.cabot-energy.com