Cabot Energy Plc announced that Ouro Preto Resources Pty Ltd, the company's wholly-owned subsidiary, has reached an agreement with The Department for Energy and Mining of the Government of South Australia to relinquish its PEL 629 onshore exploration licence in the Otway Basin, South Australia. The Company has received confirmation from DEM that it will be granted permission to vary out current commitments of its second year PEL 629 work programme for a nominal fee. The formal application for variation and relinquishment of the Licence has been submitted and the relinquishment is expected to take immediate effect. The Company will not incur any further costs or penalties associated with the outstanding work programme.