Cabot Energy (AIM: CAB), the AIM quoted oil and gas company focusing on production led growth, announces the results of its annual reserves report for its development and production assets in Canada, as determined by McDaniel & Associates Consultants Ltd as at 30 September 2017.
Total gross Proven plus Probable ('2P') reserves of 2.9 million barrels of oil equivalent ('mmboe') the Company's working interest is 75 per cent. giving net 2P reserves of 2.2 mmboe Increase in gross 2P reserves of approximately 53 per cent. from 1.9 mmboe, as at 30 September 2016, the date of the last independent reserves report all prior year Probable reserves upgraded to Proven one million barrels of previously categorised Contingent resource now classified as Probable reserves ongoing subsurface mapping project has established a significant resource base, which the Company will work to move through the resource value chain
Reserves increase is in addition to approximately 0.13 mmboe of production during the year to 30 September 2017
The net present value, using a 10 per cent. discount rate ('NPV10'), of the 2P reserves is approximately US$36 million gross or US$27 million net to the Company
Keith Bush, Chief Executive Officer, commented: 'An increase of over 50 per cent. in gross reserves and 20 per cent. in net reserves, having divested 25 per cent. of the asset, marks great progress for the Company in continuing to realise value from the Canadian asset base. The movement of reserves up the value chain from Probable to Proven through a small investment of capital indicates the strength and potential of these assets.
'Increasing core value through production and reserves growth is a fundamental component of the Company's strategy. The results shown by the reserves report now provide a solid value foundation from which the business can continue to grow.'
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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 CEO of Cabot Energy, Mr Keith Bush, who has 26 years' experience as a petroleum engineer. He has read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE standard.
Notes to Editors
Cabot Energy is an oil and gas company focused on production led growth. The Company is undertaking a redevelopment and production project in north west Alberta and has a broader portfolio of exploration and appraisal opportunities in countries of relatively low political risk, primarily 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
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