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.

10 July 2019

Cabot Energy Plc

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

Subscription to raise US$0.5 million

Cabot Energy Plc (AIM: CAB), the AIM quoted oil and gas company focussed on creating predictable production growth in Canada, is pleased to announce that it has entered into an agreement with High Power Petroleum LLC ("H2P") to raise US$0.5 million gross (£401,123), before expenses, by way of a subscription for 4,336,466 ordinary shares of 1 pence each ("Ordinary Shares") at 9.25 pence per ordinary share (the "Issue Price") (the "Subscription Shares") (the "Subscription").

The Issue Price is equal to the mid-market closing price on 9 July 2019, being the last trading day prior to this announcement. Following the completion of the Subscription, H2P will be interested in 24,973,503 Ordinary Shares, representing approximately 66.22 per cent of the Company's enlarged issued share capital.

Use of proceeds

The net proceeds of the Subscription will be used for working capital purposes and to fund the settlement of amounts owed to the Group's creditors, predominantly trade creditors of Cabot Canada. The Subscription generates sufficient funding for Cabot until the end of August 2019.

In addition, as stated previously, the Company has engaged a specialist financial advisory firm to source Canada asset-level debt financing to ensure full funding to commence its work programme through to the end of 2019. Discussions are progressing and the Company reasonably expects to finalise an agreement in Q3 2019. While the Board remains confident that these financing discussions will result in a successful outcome for the Group, no new commitments have yet been secured.

Further to the Subscription, H2P has indicated that, pending the conclusion and terms of the ongoing Canada asset-level debt finance discussions, it will consider providing additional equity funding, if needed, to support the Company's operational activities and work programme through to the end of 2019, alongside other shareholders.

Related Party Transaction

H2P is a substantial shareholder in the Company and therefore the Subscription 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 Subscription by H2P, as a related party, to be fair and reasonable insofar as all of Cabot's shareholders are concerned.

James Dewar, Interim Non-Executive Chairman, commented: "We are pleased to secure further funding at the prevailing market price from our supportive majority shareholder, H2P. On behalf of the Board, I would like to thank H2P for the continued support at this crucial time as Cabot continues to advance discussions for asset-level debt financing which will enable the Company to fund its scheduled work programmes in Canada for the remainder of 2019."

Admission of the Subscription Shares and Total Voting Rights

Application will be made to the London Stock Exchange for the 4,336,466 Subscription 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 Subscription Shares will commence at 8.00 a.m. on 16 July 2019.

Following the issue of the Subscription Shares, H2P will have an interest in 24,973,503 Ordinary Shares, which represents 66.22 per cent of the issued share capital of the Company as enlarged by the issue of the Subscription Shares.

Following the issue of the Subscription Shares, the Company will have 37,715,056 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.

-Ends-

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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