Cabot Energy : Production update and 2018 guidance

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 ('MAR'). With the publication of this announcement, this information is now considered to be in the public domain.

Cabot Energy Plc

('Cabot Energy' or the 'Company')

Production update and 2018 guidance

Cabot Energy (AIM: CAB), 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 programme.

Current production

▪ Average production in Canada for the first half of January 2018 was 827 barrels of oil per day ('bopd') including planned downtime due to scheduled pipeline inspection work

▪ The Company now owns 100 per cent. of the Canadian assets following the completion of the transaction announced on 19 December 2017 and production numbers reported from 1 January 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 programme with the first of up to four new sidetrack wells currently being drilled

- the winter work programme also includes the workover of up to four existing wells to bring them back into production

▪ A summer programme 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 US$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 barrels of oil equivalent per day ('boepd') 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 boepd 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 programme 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

Keith Bush, Chief Executive Officer of Cabot Energy, commented:

'2017 validated Cabot's asset rejuvenation strategy and demonstrated the Company's ability to execute operationally. The next phase of the Company's evolution into a significant production company begins now, with a strengthened balance sheet, growing production and a supportive shareholder base. Oil production is approximately three times higher than at the same time last year, the Company is fully financed for the 2018 Canadian investment programme and the 2018 drilling programme is already underway.

'The focus for 2018 will be to repeat the success of our recent sidetrack wells in Canada, with up to an additional 10 wells planned during the year, while continuing to invest in the facilities to sustain the levels of production that the subsurface can deliver.

'Attaining the 2018 exit rate target of between 1,600 to 2,000 barrels a day in Canada will be a material achievement and will bring significant positive cashflow benefits to the Company.'

For further information please contact:

Cabot Energy Plc	[phone]
Keith Bush, Chief Executive Officer
Nick Morgan, Finance Director
SP Angel Corporate Finance LLP	[phone]
Nominated Adviser and Joint Broker
Richard Morrison, Richard Redmayne, Charlie Bouverat
GMP FirstEnergy LLP	[phone]
Joint Broker
Jonathan Wright, David van Erp
FTI Consulting	[phone]
Financial PR
Edward Westropp

In Accordance with AIM Rules - Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and signed off by the CEO of Cabot Energy, Mr Keith Bush, who has 26 years' experience as a petroleum engineer. He has read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE standard.

Note to Editors:

Cabot Energy is an oil and gas company focused on production led growth. The Company is undertaking a redevelopment and production project in north west Alberta and has a broader portfolio of exploration and appraisal opportunities in countries of relatively low political risk, primarily Italy. Comprehensive information on Cabot Energy and its oil and gas operations, including press releases, annual reports and interim reports are available from Cabot Energy's website: www.cabot-energy.com