Monday 28 March 2022

Carnarvon Energy Limited (“Carnarvon” or the “Company”) (ASX:CVN) is pleased to announce that it is conducting a fully underwritten institutional placement (“Institutional Placement”) of 234.8 million new fully paid ordinary shares (“New Shares”) to raise approximately A$70 million.

The Institutional Placement, together with Carnarvon’s existing cash, will provide funding for a number of important activities which include:

• Contribution towards the equity component of Phase 1 (liquids) of the Dorado development;

• Front End Engineering Design (FEED) work for the Dorado development;

• Drilling of the high impact Apus-1 exploration well;

• Appraisal of the recent Pavo-1 oil discovery, and studies to identify the next high impact drilling targets in the Bedout Sub-basin; and

• General corporate purposes, overhead expenses, working capital requirements and contingencies, including costs.

Carnarvon Managing Director and CEO, Mr Adrian Cook, said:

“The proceeds from the Institutional Placement will be used to bring the Dorado liquids development to a Final Investment Decision in 2022. Dorado is a world class resource, containing high-quality reservoirs and fluids in shallow water which we expect to result in strong returns for our shareholders.

There is also a significant amount of tie-in potential close to the Dorado development. The funds will also be used to test this potential, including the upcoming Apus-1 well, which will commence drilling next month. In addition to the recent Pavo-1 discovery, this well has the potential to materially add value to the Dorado project”.

Fully underwritten institutional placement

The Company will issue 234.8 million New Shares at an issue price of A$0.30 per share to raise gross proceeds of A$70 million. The issue price of the New Shares represents:

• 9.1% discount to the last closing price of $0.33 per share on 25 March 2022;

• 18.0% discount to the 5-day VWAP on 25 March 2022; and

• 14.6% discount to the 10-day VWAP on 25 March 2022.

The New Shares will be issued within the Company’s placement capacity under ASX Listing Rule 7.1 and without disclosure in accordance with Chapter 6D.2 of the Corporations Act 2001 (Cth) (“Corporations Act”). The Placement is not subject to shareholder approval and each New Share issued under the Placement will rank equally with existing fully paid ordinary shares on issue.