Carnarvon raises funds for Buffalo well's $2.3b potential | Finance News Network

Carnarvon raises funds for Buffalo well's $2.3b potential

Company News

by Rachael Jones

Carnarvon Petroleum (ASX:CVN) recently completed a $20 million capital raising placement and SPP, raising the Company’s total cash position to $65 million.

The funds were raised to enable the Company to pursue drilling of the Buffalo-10 well with the maximum equity possible and to progress activity across other Carnarvon permits.

The Buffalo project is a high value, low risk and low cost asset.

Current plans are to drill the well in 2019 then move to oil production around 18 to 30 months later

The project would generate over US$2.3 billion in revenue and with an expected development cost of less than $150 million.

The project is expected to have a very high profit margin.

Shares in Carnarvon Petroleum (ASX:CVN) are trading flat at 14 cents. 
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.