Scott Aitken was appointed as the new Cabot chief executive in June, and, in the subsequent weeks has met with operations teams in the UK, Italy and Canada.
In an update on operations and strategy today, Aitken said: “I have set the tone across the company and informed everyone that the critical first task is to upgrade the financial planning, reporting and controls procedures to the standard expected by shareholders of a publicly quoted company.
He added: “Whilst we remain excited by the potential of the Canadian reservoirs, the results of the winter drilling programme were short of our expectations.
“The new executive management team has therefore implemented more robust work streams in sub-surface and operational planning, which we are confident will lead to improved performance of the 2019 work programme activities."
New management reviews business
So far, the new management has initiated a comprehensive strategic, operational and financial review. It has also begun implementing essential systems to assess the overall position of Cabot Energy.
Its initial efforts have included talks to appoint replacement experienced independent non-executive directors.
At the end of June, the company had a cash balance of US$6.2mln and it noted that only critical operating and capital expenditures are planned for the remainder of this calendar year.
In terms of asset performance, the company noted that production averaged 781 barrels of oil per day (bopd) in the second quarter of 2018.
At the same time, it said that production for the twelve months up to June 30 averaged 761 bopd.
In Canada, over the remainder of 2018, Cabot intends to ‘high grade’ sufficient numbers of well targets for a 2019 drill programme in which it is aiming for around 30% of cost savings.
In Italy, efforts will be focusing on the completion of its transaction with Rockhopper Exploration (to sell the Civita gas asset) and it will advance farm-out processes for its interests in the Adriatic and Sicily Channel prospects.
Cabot expects to review its ongoing capital requirements in the fourth quarter of 2018.