Carnarvon Petroleum Ltd (ASX:CVN) will issue 202.6 million new shares priced at 39 cents to raise an additional $79.02 million in funding to progress the Dorado offshore oil discovery.
Dorado is a major oil and gas field on Australia’s prolific North West Shelf in water depths of 70 to 100 metres.
The offshore permits hosting the Dorado-1 discovery and other drill targets are held in joint venture by operator Santos Ltd (ASX:STO).
READ: Carnarvon Petroleum raising up to $84 million to advance Dorado project towards development
Carnarvon’s managing director Adrian Cook said: “Carnarvon is delighted with the successful outcome of the institutional placement and the support received from new and existing shareholders.
“The proceeds provide Carnarvon the opportunity to progress the Dorado project through to the development phase and will also support the company’s other key strategic initiatives.”
Proceeds will go towards:
• Ongoing appraisal of the Dorado discovery, including 3D seismic and well costs;
• Front End Engineering Design (FEED) studies for the initial Dorado development;
• Contribution towards the equity component of the initial Dorado development; and
• General corporate purposes, working capital requirements and contingencies, including costs to progress the company’s other projects.
READ: Carnarvon Petroleum tagged as buying opportunity by Euroz
Carnarvon is covered by a number of stockbrokers' research teams including Argonaut, Canaccord, Euroz, Hartleys, Macquarie, and RBC.
Recently, Perth-based broker Euroz ,who has a $1.00 price target on the stock, suggested the recent pullback in the share price was a buying opportunity for investors.