AUSTRALIA: Carnarvon Energy Limited has recently reaffirmed its business priorities, emphasising its commitment to restoring and growing shareholder value by maximising the value of its asset base and reducing corporate costs.

One of the key highlights of Carnarvon’s new strategy is the progress made on the Dorado development plan, which is designed to enhance project value, reduce overall capital expenditure, and ensure readiness for a final investment decision (FID) in 2024.

Carnarvon CEO Philip Huizenga said the company is well positioned to deliver the Dorado project through to a FID this year, and onto first oil.

With a strong financial position, including a $181 million cash balance, US$90 million development funding cost carry, and a prospective debt facility, Carnarvon expects to be fully funded for its share of development costs to first oil.

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

The company has also focused on reducing its corporate and administrative costs, achieving a reduction of over 40 per cent compared to the 2023 cost base.

This cost-saving measure, along with a commitment to making no new material acquisitions, is aimed at preserving the company’s strong balance sheet for the Dorado development and other high-value assets in the Bedout Sub-basin.

The business is also exploring alternative transactions to accelerate value realisation.

The reduced corporate costs are currently below the interest income being generated from Carnarvon Energy’s cash deposits, positioning the company favourably to deliver value for its shareholders.

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