Cabot Energy revenues soar on significantly increased output

Oil and gas outfit Cabot Energy expects annual revenues to more double following a sharp increase in output.

Cabot told investors on Monday that annual revenues looked set to have soared 154% to $12.2m in 2018, driven mainly by a 71% increase in annual gross oil production to 703 barrels per day.

However, Cabot warned that despite its recent fundraising efforts, risks to business continuity remained as the AIM-listed outfit continued talks to secure financing.

While management was progressing discussions regarding debt financing options in order to secure additional working capital, Cabot stated there could be no assurances that the discussions would lead to a "positive outcome", though it remained" encouraged".

Chief executive Scott Aitken said: "The board is in the process of assessing the most effective financing options to provide additional working capital, recommence drilling and efficiently grow production.

"As previously announced, this may involve raising funds at an asset level - an option which has been made more attractive by the restoration to historic levels of the Edmonton Light Oil selling price - in addition to approaching the market for a further equity raise if needed."

Looking forward, gross oil production averaged 519 bopd during January and February, with an average sales price in February of $45.73 per barrel, reflecting the gradual restoration of the historic differential between the Edmonton Light Oil and West Texas Intermediate.

As of 1210 BST, Cabot shares had slipped 2.70% to 9p.