Cabot Energy updates market on Canada summer programme

Oil and gas company Cabot Energy updated the market on its Canada summer programme on Wednesday, confirming its had commenced work, targeting additional gross production of 300 barrels of oil per day from both the Rainbow and Virgo areas.

The AIM-traded firm said the programme was expected to last between two to three months, with operations requiring both a drilling rig and a workover rig.

It said the programme included two sidetracks from existing well pads in the Rainbow area, as well as the recompletion of two wells in the Virgo area to enable water disposal downhole and the trucking of dry oil to the company's facilities.

The programme also included three workover operations on wells in the Rainbow area to restart production.

“Gross cost of the programme is expected to be $3.5m - $2.6m - to be financed from existing cash resources and production revenues,” Cabot’s board said in its statement.

“Following the summer work programme, gross production in Canada is expected to be between 800 and 1,000 bopd - 600 and 750 bopd net.”