Carnarvon Energy (ASX:CVN) has received the first payment of US$58 million from CPC Corporation following the completion of the divestment of Carnarvon’s Bedout assets.
On 22 February 2023, Carnarvon, which has a market capitalisation of $234.2 million, announced it had entered into a binding agreement to divest a 10% interest in its Bedout assets to OPIC Australia, a wholly owned subsidiary of CPC.
Under the sales agreement, Carnarvon received the upfront payment of $56 million on completion of the transaction. The company is set to receive a further $90 million once a final investment decision is made by CPC.
Carnarvon’s overall financial liquidity following the divestment completion stands at $319 million, encompassing $181 million in cash and $138 million for the CPC Carry.
Commenting on the completion of divestment, Carnarvon Energy Managing Director and Chief Executive Officer (CEO) Adrian Cook says that the deal with CPC has provided the company with ‘substantive’ funding for the development of the Dorado and Pavo fields, which make up the ‘largest’ undeveloped oil field offshore Australia.
“Completion of the CPC transaction is a crucial funding milestone for Carnarvon and a key
piece in the company’s transformational journey to delivering high-quality, low-cost
production for shareholders.
Carnarvon’s position is unique among mid-cap energy stocks in terms of its resource base,
sizeable financial liquidity, and the unrivalled exploration potential across its Bedout assets.
I look forward to providing shareholders with further positive news about the progress of the Dorado development, and wider Bedout exploration, in the coming months.”
Carnarvon Energy is an oil and gas explorer focused on the Carnarvon basin offshore in Western Australia.