Highlights
- Carnarvon completes transformational divestment of a portion of its Bedout assets
- Carnarvon now holding ~A$319 million in financial liquidity, comprising:
- • A$181 million in cash; and
- • A$138 million future contribution to Carnarvon’s Dorado development costs
- Completion of the transaction positions Carnarvon to realise the value of its high-quality portfolio, including development of the world class Dorado and Pavo fields, and unlocking the substantial exploration potential across its Bedout assets
- Carnarvon is unique among mid-cap energy stocks in terms of its financial strength, quality resource base and significant long-term growth prospects
Carnarvon Managing Director and CEO, Adrian Cook, commented:
'Completion of the CPC transaction is a crucial funding milestone for Carnarvon and a key piece in the company’s transformational journey to delivering high-quality, low-cost production for shareholders.
Following receipt of an adjusted payment of US$58 million (equivalent to ~A$89 million1) from CPC at completion, Carnarvon’s cash reserves now stand at ~$A181 million, with total financial liquidity of ~A$319 million.
Critically, the deal with CPC provides Carnarvon with substantive funding for development of the world class Dorado and Pavo fields, the largest undeveloped oil field offshore Australia.
With CPC formally joining the Joint Venture, Carnarvon’s immediate focus is on working with it, and Santos, to achieve a Final Investment Decision on the Dorado development as soon as possible.
I welcome CPC to the Joint Venture, and thank it for the constructive way it has worked with Carnarvon to finalise the transaction.
Carnarvon’s position is unique among mid-cap energy stocks in terms of its resource base, sizeable financial liquidity and the unrivalled exploration potential across its Bedout assets. I look forward to providing shareholders with further positive news about the progress of the Dorado development, and wider Bedout exploration, in the coming months.'
(1) All USD translated to AUD at the current exchange rate of 0.65.
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Source: Carnarvon Petroleum
