Canada-focused oil and gas production company Cabot Energy PLC (LON: CAB) today announced three developments in its financial position, which saw its share price jump.
The first update was that the company had entered into a non-binding term sheet with a private energy lender, for an asset-level loan facility of up to C$5.0 million. This will fund their ‘Winter Work Programme’.
They also signed a Subscription Agreement worth US$0.3 million, with High Power Petroleum LLC, to fund the commencement of their late ‘Summer Work Programme’.
Finally, they have an Open Offer set to launch in October 2019. High Power Petroleum LLC will participate in the Open Offer for a minimum interest of US$0.7 million.
Cabot Energy comments
James Dewar, Interim Non-Executive Chairman, stated,
“We are pleased to have entered into a term sheet to debt-fund the Winter Work Programme and secure equity funding from our supportive majority shareholder, H2P, to fund the Summer Work Programme. On behalf of the Board, I would like to thank H2P for their continued support at this crucial time. We are always mindful of our other shareholders and look forward to providing them with the opportunity to participate in an equity fundraising, via an Open Offer on the same terms, in October. I would like to thank the management team who have worked hard to access non-equity finance in order to minimise further shareholder dilution, which is an endorsement of the quality of both the Company’s management team and the assets’ potential. In late 2019, we intend to further strengthen our capital structure for the remainder of 2019 and the entirety of 2020 once the Summer Work Programme has been successfully executed.”
After jumping almost 43%, the Company’s shares have relaxed to a rally of 31.43% or 1.10p to 4.60p a share 02/09/19 11:39 BST. The Company’s p/e ratio and dividend yield are not yet available, their market cap is £1.79 million.
Elsewhere in the oil and gas sector, there have been updates from; Reabold Resources PLC (LON: RBD), Eco Atlantic Oil and Gas Ltd (AIM: EOG), Valeura Energy Inc.(LON: VLU), President Energy PLC (LON: PPC), Mosman Oil and Gas Limited (AIM: MSMN) and Nostrum Oil and Gas PLC (LON: NOG).