Oil and Gas producer Carnarvon Petroleum Limited (ASX: CVN) today tabled the investors’ presentation defining its core business streams for oil and gas appraisals at Dorado and oil field redevelopment at Buffalo. The presentation led to positive market sentiments as the stock price surged up by 3.488% to trade at $0.445 on 11 March 2019 (2:06 PM AEST).
Carnarvon discovered light oil, gas and condensate in a number of reservoirs on the completion of Dorado-1 well during the half year ended 31 December 2018. It also secured the partnership with Australia’s leading energy company Santos Limited.
Following the monumental Dorado discovery, Carnarvon and its JV partner Santos have started working towards the appraisal of Dorado and evaluate the potential of the follow-up prospects. For this purpose, it secured a cost-effective jack-up drilling rig contract with Noble Corporation for its Noble Tom Prosser.
Carnarvon’s 2019 drilling program for Dorado appraisal is primarily focused on the assessing the flow properties of hydrocarbons, obtaining further information with respect to the volume of gas, oil and condensate identified at Dorado-1 well and to secure further data at different locations within the Dorado field.
Adrian Cook, Managing Director of Carnarvon, stated that the company’s 2019 objective is to better understand the recoverable resources volume at Dorado so that it can come to a Final Investment Decision for development ideally in 2020.
Further, the company has also advanced its preparation to redevelop its 100% owned Buffalo oil field. The project lies under the exclusive jurisdiction of Timor-Leste as a result of the Maritime Boundary agreement between Timor-Leste and Australia. Both, the Timor-Leste’s Government and Carnarvon, have agreed to the essential terms of the contract with respect to production sharing. In addition, Carnarvon completed the drilling of Phoenix South-3 well and identified hydrocarbons in the Caley interval.
On the cost front, Carnarvon incurred $1,135,000 during the half year ended 31 December 2018 with respect to its new ventures and advisory costs. This translates the company’s continued activities to build its substantial database on regional geology which has been integral in recognising prospective opportunities within the North-West shelf of Australia. Last month, the company institutional placement of $50,028,000 comprising the issue of 151.6 million new shares to institutional and sophisticated investors at an issue price of $0.33 per share.
Carnarvon is currently seeking the key approval to commence the drilling at the Buffalo East-1 well which defines a crucial step to redevelop the Buffalo oil field.
To the good news to Carnarvon’s shareholders, Carnarvon Petroleum Limited got recently added to the S&P/ASX 300 Index, effective at the open on 18 March 2019. The index is a liquid and float adjusted benchmark to the performance of the top 300 companies listed on the Australian Securities Exchange by Standard & Poor’s.
Over the past 12 months, CVN stock price has massively gone up by 218.52% with the continued positive momentum over the period including 30.30% surge in the last three months.
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