- Cabot Energy said it expected annual revenue to more double following sharp increase in output, though the company said there remains a risk to business continuity as it continued talks to secure financing.

For 2018, revenue was expected to increase by 154% to US$12.2m.

The company said it had increased 2018 average annual gross oil production by 71% to 703 barrels of oil per day (bopd).

In January and February 2019, gross oil production had averaged 519 bopd with an average sales price in February of US$45.73 per barrel, reflecting the gradual restoration of the historic differential between the Edmonton Light Oil and West Texas Intermediate benchmark price, the company said.

Despite the recent fundraise, there remained a risk to business continuity, the company said.

Management were currently progressing discussions regarding debt financing options at the asset level in order to secure additional working capital, some or all the funding needed to commence a summer drilling programme in Canada and to support the growth of the business, the company added.

But the company said there can be no assurances that these debt finance discussions would lead to a positive outcome for Cabot Energy, though remained 'encourage' by recent talks.

'We believe Cabot Energy is now in a stronger operational position to recommence drilling and unlock the inherent value of its production and development assets, subject to the necessary funding being in place,' said Scott Aitken, CEO of Cabot Energy.

'During 2018, the technical team carried out extensive subsurface analysis, resulting in significant upgrades to our Canadian resources and reserves, increasing gross 2P reserves by 26% to 3.6 mmboe, and increasing gross reserves and resources by 339% to 42.2 mmboe.'

'The Board is in the process of assessing the most effective financing options to provide additional working capital, recommence drilling and efficiently grow production. As previously announced, this may involve raising funds at an asset level - an option which has been made more attractive by the restoration to historic levels of the Edmonton Light Oil selling price - in addition to approaching the market for a further equity raise if needed.'

At 8:47am: [LON:CAB] Cabot Energy Plc share price was 0p at 9.25p

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