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Carnarvon Petroleum continues Dorado Project development as planned

Planned seismic acquisition programs in the 2020 calendar year are expected to be deferred until market conditions improve and vessel logistics are not constrained by health issues.

Carnarvon Petroleum Ltd -  Carnarvon Petroleum continues Dorado Project development as planned
Carnarvon has a strong cash balance of $119 million and no debt as at December 31, 2019

Carnarvon Petroleum Ltd (ASX:CVN) is continuing with Dorado Project development as planned with engineering and pre-FEED work streams being advanced, as mentioned in the company’s latest shareholder update.

While current market conditions associated with the COVID-19 virus and lower oil price environment are providing challenging business conditions, planned seismic acquisition programs in the 2020 calendar year are expected to be deferred until market conditions improve and vessel logistics are not constrained by health issues.

The company also stated that work on the refinement of prospects for exploration drilling within the Keraudren 3D seismic area is also continuing and the drilling of these wells in 2021 will be dependent on improving market conditions.

A “high-quality asset” with low cost of production

Carnarvon managing director and CEO Adrian Cook said: “The Dorado field is a high-quality asset that is expected to have a low cost of production.

“So while the current market conditions provide challenges for business, progressing key assets like the Dorado field ensures Carnarvon and the operator have important options for a timely development in the future.

“Carnarvon’s very strong financial position, with A$119 million in cash at December 31, 2019 ensures it is well placed to progress and support the operator of the Dorado development.”

It is worth noting that Cook purchased 100,000 shares valued at $12,000 in an on-market transaction on March 9 increasing the amount of securities held by him after the change to 15.93 million shares.

Quick facts: Carnarvon Petroleum Ltd

Price: 0.19 AUD

ASX:CVN
Market: ASX
Market Cap: $297.23 m
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Carnarvon Petroleum advancing Dorado and Buffalo projects

Carnarvon Petroleum Ltd (ASX:CVN) managing director Adrian Cook speaks to Proactive Investors following a successful $50 million capital raising last week. Cook discusses the Dorado project, detailing the company's plans and expectations for three wells. He also updates on the Buffalo...

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