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Maximising asset value with Carnarvon

Flow rate

The optimised Dorado development plan is focussed on improved project value, a reduction in overall CAPEX and provides high confidence towards being FID-ready in 2024.

“I am extremely pleased with the progress on the Dorado development,” Carnarvon Energy chief executive officer Philip Huizenga said.

“Carnarvon is well positioned to deliver the Dorado project through to a Final Investment Decision this year, and onto first oil.”

With the company’s $181m cash balance, US$90m development funding cost carry and a prospective debt facility, Carnarvon expects to be fully funded for its share of development costs to first oil.

As such, Carnarvon is firmly focused on supporting the development of Dorado in line with being FID-ready in 2024 in order to maximise shareholder value.

The company also remains open to exploring alternative transactions to accelerate value realisation and is working with J.P. Morgan to consider its strategic options.

“Our strengthened focus on Dorado and preserving our significant cash balance for this project gives us confidence to achieve these outcomes,” Huizenga said.

“Carnarvon is also actively exploring alternative transactions to realise accelerated value for our shareholders.

“The company is working with J.P. Morgan as its financial advisor to explore these opportunities.’

At current interest rates, the reduced corporate costs are materially below the interest income being generated from the company’s cash deposits, meaning Carnarvon is well positioned to deliver the right value outcome for shareholders.

“I look forward to updating shareholders on continued Dorado development progress along with any other corporate activities as these initiatives progress,” Huizenga said.

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