Carnarvon Petroleum LTD Building On Dorado Success
Monday 20 April 2020
During the quarter we have witnessed significant global consequences from the Covid-19 pandemic, with direct and secondary impacts occurring within our industry.
Maintaining Carnarvon’s prudent financial position has always been at the forefront of the Company’s strategy and has ensured that the business is in a robust position to withstand these current market conditions. Carnarvon preserved its strong cash balance this period, with A$118 million as at the end of the quarter. This means the Company is in a very good position to cover its 2020 expenditure and beyond.
Throughout the quarter, Carnarvon and its Joint Venture Partner continued to advance the Dorado development. The work being undertaken is focused on preparations to commence the Front End Engineering Design (“FEED”) phase.
The sheer size and nature of the Dorado field and expected recovery in the longer term oil prices means that it is a strong and robust project, capable of producing at globally competitive capital and operating costs.
On this basis, the Carnarvon team will continue working very closely with the operator to progress the Dorado development and I look forward to providing continued updates as we achieve key milestones.
Moving onto the Buffalo Project, Carnarvon has continued with its farmout process and is working with potential partners interested in joining Carnarvon in the project and assisting with its future funding.
In parallel with the farmout process work, Carnarvon has been operations in Timor Leste and developing its operational readiness.
Buffalo is an important asset to Carnarvon and despite the farmout process taking longer than anticipated, it remains our focus to attract a quality partner on fair terms.
During the quarter the Company responded quickly to the COVID-19 pandemic to protect its staff, ensure reasonably smooth on-going business operations and to reduce non essential costs. The Company will continue to monitor global and industry conditions and will make appropriate changes as circumstances dictate.