Carnarvon Energy (ASX:CVN) announces $70m placement

Carnarvon Energy (ASX:CVN) has announced a $70 million institutional placement to help finance the Dorado development and progress its growth opportunities.

As part of the placement, the company will issue 234.8 million new shares at $0.30 per share. The share price represents a 9.1 per cent discount to the closing price last Friday.

“The proceeds from the institutional placement will be used to bring the Dorado liquids development to a final investment decision in 2022,” said chief executive officer Adrian Cook.

“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”.

Shares in Carnarvon Energy (ASX:CVN) are in a trading halt, and last traded at $0.33.