Cabot Energy strikes a transformational deal in Canada with i-Pulse
Cabot Energy have bought the remaining 25% of the oil-producing Canadian assets they operate in Alberta. In effect they become the operator of the field and all revenues return to Cabot.
In turn, ‘H2P UK’ owner I-Pulse Inc, well-funded developers of stimulation technology, have taken a majority stake in Cabot as part of the deal.
* The price paid by Cabot is $8.71 million, in shares and cash
* A deferred cash payment of $1.71 million will be made
* The remainder will be paid in shares
#CAB has also ‘provisionally raised up to £12.3 million through a subscription, placing and open offer at a price of five pence per share’. The subscription funding of £8.9M comes from I-Pulse, the placing for £1.4M is already covered by institutions, and the open offer of £2M is for private investors, with one Open Offer Share for every existing 8 ordinary shares.
The commercial rationale of the move is to speed up the development of the Rainbow and Virgo fields and to grow the business much more rapidly.