Carnarvon Petroleum Limited (CVONF) Capital Raise Secures Funds for Buffalo-10 Drilling
Perth, Australia (ABN Newswire) - Carnarvon Petroleum Limited ("Carnarvon" or "the Company") (ASX:CVN) (OTCMKTS:CVONF) is pleased to confirm it has successfully raised $16 million (before costs) which will be used to fund drilling of its Buffalo-10 well. Additional funds are expected to be secured through a share purchase offer to existing shareholders to raise up to $4 million.
Highlights
- Carnarvon successful in capital raise to fund Buffalo-10 well development
- Timing allows commitments to be made now to facilitate drilling in 2019
- Buffalo-10 well to confirm attic oil and mid case volume of 31 million barrels
The share purchase plan is being offered to existing eligible shareholders, so as to allow them to subscribe for new shares in Carnarvon at the same price as shares issued under the placement. Further details regarding the share placement and the proposed share purchase plan is set out in Annexure 1 (see link below).
All capital raised is for the purpose of funding the Buffalo-10 well development and to meet the Company's general working capital requirements.
As reported to ASX on 3 May 2018, the Company is moving quickly to progress the redevelopment of the Buffalo oil field.
The Buffalo-10 well will be the first of three production wells to be drilled in this exciting oil redevelopment project. The current expected timing for drilling to commence on the first well is between March and September 2019 (after the end of the cyclone season).
Amounts raised under the placement and share purchase plan, combined with the Company's existing cash, will underpin the funding of the Buffalo-10 well and enable drilling to occur as soon as practicable.
The Board of Directors of Carnarvon deemed the raising the minimum needed to proceed with the Company's Buffalo and Phoenix project activities in a prudent financial manner.
Carnarvon is currently participating in drilling the Phoenix South-3 well and will soon commence drilling the Dorado-1 well in its Phoenix project. These activities are expected to provide important value opportunities for shareholders in the near term.
Carnarvon Chief Executive Officer, Adrian Cook said: "The Buffalo project has the potential to generate significant value that's ideally suited to Carnarvon in terms of scale, time to first production and overall risk profile.
This capital raise demonstrates our expeditious approach to make this production opportunity a reality for shareholders, particularly as we see oil prices currently strengthening from the recent lows of previous years.
Carnarvon now offers investors two high quality, organically derived projects progressing to commercialisation phases in the near term."
To view the summary of the capital raise and Annexure 1, please visit:
http://abnnewswire.net/lnk/68G9936E
To view Capital Raise Presentation, please visit:
http://abnnewswire.net/lnk/2365B18A
About Carnarvon Petroleum Limited:
Carnarvon Petroleum Limited is an oil and gas exploration company, listed on the Australian stock exchange (ASX:CVN), Frankfurt (FRA:CJB) and US OTC (OTCMKTS:CVONF). Carnarvon has an extensive acreage position in the North West Shelf of Western Australia that is designed to offer investors high alpha leverage to the energy sector. The company's near term focus is on maturing oil, gas and condensate discovered in its Phoenix project, with partner Quadrant Energy, and on bringing into production oil from the Buffalo field.
Source:
Carnarvon Petroleum Limited
Contact:
Investor inquiries:
Thomson Naude
Company Secretary
Phone: +61-8-9321-2665
Email: investor.relations@cvn.com.au
Media inquiries:
Luke Derbyshire
Managing Director
Spoke Corporate
Phone: +61-488-664-246
Email: luke@spokecorporate.com
Source: ABN/Asia Business Newswire
(May 10, 2018 - 10:10 PM EDT)
News by QuoteMedia
www.quotemedia.com
