Cabot Energy provides production update

LONDON -- Cabot Energy, the AIM quoted oil and gas company focused on production led growth balanced with high impact exploration and appraisal opportunities, provides the following update on current production in Canada and guidance on the 2018 investment program.

Current production

• Average production in Canada for the first half of January 2018 was 827 bopd, including planned downtime due to scheduled pipeline inspection work
• The Company now owns 100%. of the Canadian assets following the completion of the transaction announced on Dec. 19, 2017, and production numbers reported from Jan. 1, 2018, represent the Company’s entire interest in the Canadian assets
• Two recently drilled sidetrack wells continue to perform better than expected

2018 guidance

• The Company is targeting to double its production in Canada by the end of 2018 to achieve an exit production rate of 1,600 to 2,000 bopd
• Average production guidance for 2018 is between 1,000 and 1,200 bopd, taking into account seasonal production downtime, which would represent up to a fourfold increase on the Company’s average production for 2017
• The Company has started its 2018 winter work program with the first of up to four new sidetrack wells currently being drilled
  -the winter work program also includes the workover of up to four existing wells to bring them back into production
• A summer program is being developed and is expected to start in July 2018 with up to six new sidetrack wells planned
• The 2018 capital investment programme in Canada, financed from existing cash resources, is expected to total approximately $14 million and is to be spent on drilling, specific facilities upgrades and subsurface evaluation
• The onshore Civita gas field production in Italy of approximately 130 boed will continue to accrue to the Company pending regulatory approval of the previously announced acquisition

2017 production

• Gross production in Canada averaged 400 bopd during 2017 (300 bopd net to the Company)
  -the Company also accrued the economic benefit of 130 boed of gas production from Civita in Italy throughout 2017
• Gross production in December 2017 peaked at 951 bopd with an average of 653 bopd for the month
• December production was affected by:
  -a planned pipeline inspection program undertaken during the month which temporarily shut in production across different parts of the field
  -extremely low temperatures during the last week of the month, down to approximately minus 45 degrees Celsius, which temporarily shut in some production