Carnarvon raises A$79m for Dorado work
PERTH (miningweekly.com) – ASX-listed Carnarvon Petroleum has completed a fully underwritten institutional placement, raising A$79-million to fund ongoing appraisal activities and the initial phases of the Dorado development, offshore Western Australia, including front-end engineering and design (FEED).
More than 202.6-million new Carnarvon shares will now be issued, at a price of 39c each, to professional and institutional investors under the company’s existing placement capacity.
“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,” said Carnarvon MD Adrian Cook.
The company is hoping to raise an additional A$5-million through a share purchase plan (SPP), with shareholders allowed to subscribe for up to A$15 000 in new shares.
The SPP will close on August 16.
The Dorado project is estimated to host a gas volume of some 748-billion cubic feet, and could be combined with the nearby Roc resource, which contains an additional 332-billion cubic feet of gas.
The Dorado FEED is expected to start in early 2020 and will be completed by the end of that calendar year.
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