Cabot Energy In "Strong" Position As Finance Talks Continue

(Alliance News) - Cabot Energy PLC said Tuesday it believes its assets remain "fundamentally ...

Alliance News 25 June, 2019 | 3:33PM
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(Alliance News) - Cabot Energy PLC said Tuesday it believes its assets remain "fundamentally strong" following a review of its business.

Speaking at the oil and gas company's annual general meeting Tuesday, Interim Non-Exec Chair James Dewar said: "2018 was an important year of transition for the group which included the appointment of a new management team and board. Our immediate focus was to stabilise the business with the aim of creating a sustainable production platform to unlock the long-term growth potential of the company."

He continued: "To that end, a comprehensive strategic, operational and financial review of the business was undertaken in the second half of 2018 and a series of key progressive changes were implemented, which have led to significant improvements in the group's financial controls, corporate governance, and operations."

Dewar said, as a result of the review, the company entered 2019 in a "stronger position". The company is funded through mid July, Dewar said, following its fundraise in February.

"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 a late-summer 2019 work programme," he added.

In the meantime, the company is in talks with majority shareholder, High Power Petroleum LLC, to provide short-term funding. "Whilst the board remains confident that these financing discussions will result in a successful outcome for the group, no new commitments have yet been secured," said Dewar.

In London, Cabot Energy shares were down 8.1% Tuesday afternoon at 8.50 pence each.

By Paul McGowan;

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Cabot Energy PLC 3.75 GBX -5.06 -
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