21 Nov 2018 12:37
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.
21 November 2018
Cabot Energy Plc
("Cabot Energy" or the "Company")
Italian Resources Report
Cabot Energy (AIM: CAB), the AIM quoted oil and gas company creating predictable production growth in Canada balanced with high impact exploration in Italy, announces the results of the independent resources report on its 100% owned and operated, offshore permits in the Southern Adriatic and Sicily Channel. The results are as determined by Lloyds Register Senergy ("LR Senergy").
Summary of Resources
· Mean Gross Prospective Resources of 933 MMboe of which 793 MMboe are Net to Cabot
o 653 MMboe in the Adriatic Cygnus Prospect, with 513 MMboe net to Cabot
o 280 MMbbl in the Sicily Channel Vesta Prospect, all net to Cabot
Scott Aitken, Chief Executive Officer, commented: "We are pleased to announce the results of the independent resources report on our 100% owned and operated assets in Italy. This reinforces that the Company has a leading position in Italy with over 1 Bboe identified prospects and discoveries. In particular, our Southern Adriatic and Sicily Channel permits provide world scale exposure to high-impact offshore exploration.
"Onshore, we have already secured seismic and exploration drilling funding for the Po Valley exploration oil leads through a farm-in from Shell Italia. Offshore, we are in negotiations to secure the funding for 100% of the drilling costs for exploration wells in each of the Cygnus and Vesta oil prospects."
The tables below summarise the findings of the resources report as at 16 November 2018:
Prospective Resources
Cygnus Prospect Southern Adriatic | |||||
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1U - P90 | 2U - P50 | 3U - P10 | Pmean | Chance of Discovery |
Gross Oil MMbbl | 126 | 405 | 1249 | 601 | 14% |
Gross Gas BCF | 65 | 209 | 646 | 310 | |
Gross MMboe | 137 | 440 | 1357 | 653 | |
Net Oil MMbbl | 123 | 347 | 959 | 472 | |
Net Gas BCF | 64 | 179 | 495 | 244 | |
Net Attributable to Cabot MMboe | 134 | 377 | 1042 | 513 | |
Note: Cabot is the Operator in the Cygnus Prospect. Gross resources are those estimated for the total accumulation which may extend on to an adjacent licence in which Cabot does not hold equity. Net volumes are those wholly contained within the licences held by Cabot, in all of which the Company has a 100% working interest.
Prospective Resources
Vesta Prospect Sicily Channel | |||||
| 1U - P90 | 2U - P50 | 3U - P10 | Pmean | Chance of Discovery |
Gross Oil MMbbl | 31 | 187 | 642 | 280 | 13% |
Net Attributable to Cabot MMbbl | 31 | 187 | 642 | 280 | |
Note: Cabot is the Operator in the Vesta Prospect. Gross resources are those estimated for the total accumulation which may extend on to an adjacent licence in which Cabot does not hold equity. Net volumes are those wholly contained within the licences held by Cabot, in all of which the Company has a 100% working interest.
A copy of the LR Senergy resources report will be made available on the Company's website at www.cabot-energy.com
Enquiries:
Cabot Energy Plc | +44 (0)20 7469 2900 |
Scott Aitken, CEO Petro Mychalkiw, CFO |
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SP Angel Corporate Finance LLP | +44 (0)20 3470 0470 |
Nominated Adviser and Joint Broker |
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Richard Morrison, Richard Hail, Stephen Wong |
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GMP FirstEnergy | +44 (0)20 7448 0200 |
Joint Broker |
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Jonathan Wright, David van Erp |
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Luther Pendragon | +44 (0)20 7618 9100 |
Financial PR |
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Harry Chathli, Alexis Gore, Joe Quinlan |
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In Accordance with AIM Rules - Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and signed off by the CTO of Cabot Energy, Mr Campbell Airlie, who has over 35 years' experience as a petroleum engineer, and is supported by the Cabot Energy Board of Directors. He has read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE standard.
Note to Editors:
Cabot Energy (AIM: CAB) is an oil and gas company creating predictable production growth in Canada balanced with high impact exploration in Italy. Comprehensive information on Cabot Energy and its oil and gas operations, including press releases, annual reports and interim reports are available from Cabot Energy's website: www.cabot-energy.com
GLOSSARY
US$ | United States Dollars |
% | Percent |
1U, 2U, 3U | These signify the Low, Best and High estimated values for Prospective Resources. Where a probabilistic evaluation method has been adopted in the determination of resources these values will correspond to the low, best and high probabilistic values eg P90, P50, P10 |
P90, P50, P10, Pmean | When probabilistic (eg Monte Carlo) type evaluations are adopted, this is a statistical confidence level for an estimate. P90 means there is at least a 90% probability that the quantities actually recovered will equal or exceed this Low Estimate. P50 means there is at least a 50% probability that the quantities actually recovered will equal or exceed this Best Estimate. P10 means there is at least a 10% probability that the quantities actually recovered will equal or exceed the High Estimate. Pmean is the mean value of the probabilistic distribution. |
B | Billion |
bbl | Barrel of oil. |
boe | Barrel of oil equivalent. Gas is converted to equivalent liquid volumes at 6000 CF gas per boe |
CF | Cubic Feet of gas at standard conditions of 14.7psia and 60oF |
Chance of development | The estimated probability that, once discovered, a known accumulation will be commercially developed. For contingent resources the chance of commerciality is equal to the chance of development. For prospective resource, the chance of commerciality includes both the chance of discovery and development. |
M | Thousand |
MM | Million |
MMbbl | Million barrels of oil |
MMboe | Million barrels of oil equivalent. Gas is converted to equivalent liquid volumes at 6 BCF gas per mmboe |
Prospective Resources | Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity. |