CAB.L

Cabot Energy Plc
Cabot Energy PLC - Update on Italian Assets
26th September 2019, 06:00
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RNS Number : 7081N
Cabot Energy PLC
26 September 2019
 

 

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. With the publication of this announcement, this information is now considered to be in the public domain.

 

26 September 2019

 

Cabot Energy Plc

 

("Cabot", the "Group" or the "Company")

 

Update on Italian Assets

 

Cabot Energy Plc (AIM: CAB), the AIM quoted oil and gas company focussed on creating predictable production growth in Canada, announces that Cabot and Shell Italia E&P S.p.A. ("Shell"), have agreed to withdraw from the Cascina Alberto onshore exploration licence in The Po Valley, Northern Italy (the "Withdrawal"). Shell will make a payment to the Group to cover the costs and inconveniences incurred in the process of the Withdrawal. The Withdrawal is subject to the approval of the Italian authorities, which is expected during Q4 2019.

 

The Withdrawal forms part of the Company's stated strategy to divest its interest in certain non-core assets to generate funds for ongoing working capital requirements and to focus on advancing the rest of the Group's assets.

 

As previously stated, the Italian government signed a decree on 12 February 2019 enacting the suspension of work on oil and gas exploration permits and applications for new exploration permits in Italy, whilst a national review is undertaken. Whilst Cabot's licences are in suspension, the Company continues to review its Italian portfolio with the intention of prioritising Cabot's offshore opportunities in the Adriatic and the Sicily Channel.

 

The Group is prepared to progress its offshore permits as soon as the government's review has concluded, whenever that occurs within the next 17 months.  Cabot's remaining exploration permits have all been subjected to rigorous environmental reviews and, although no assurances can be given, the Group's Directors are optimistic for a positive outcome.

 

Scott Aitken, Chief Executive Officer of Cabot, said: "The Withdrawal from the Po Valley Cascina Alberto exploration permit is consistent with our strategy to divest non-core assets to enable Cabot to focus funding and management time on the exploration upside within the rest of our Italian portfolio."

 

-Ends-

 

Enquiries:

 

Cabot Energy Plc

+44 (0)20 7469 2900

Scott Aitken, CEO

Petro Mychalkiw, CFO

 

 

 

SP Angel Corporate Finance LLP

+44 (0)20 3470 0470

Nominated Adviser and Broker

 

David Hignell, Richard Hail, Richard Redmayne

 

 

 

Luther Pendragon

+44 (0)20 7618 9100 

Financial PR

 

Harry Chathli, Alexis Gore, Joe Quinlan

 

 

 

Note to Editors:

Cabot Energy Plc (AIM: CAB) is an oil and gas company focussed on creating predictable production growth in Canada. Comprehensive information on Cabot and its oil and gas operations, including press releases, annual reports and interim reports are available from Cabot's website: www.cabot-energy.com


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