Peter MilneThe West Australian
Carnarvon Petroleum wants to raise $50 million to fund three wells in Australia’s newest oil hot spot, the Bedout Basin.
The Perth-based junior has to fund its 20 per cent share of three wells in the Santos-operated Dorado and Roc fields.
The Noble Tom Prosser jack-up rig will arrive at the site north of Port Hedland in April.
Carnarvon expects its share of the cost of the Dorado-2 and Dorado-3 appraisal wells, early engineering and potential 3D seismic imagining to cost between $40 million and $55 million.
The Roc South exploration well and potential 3D seismic imagining will require between $10 million and $15 million from Carnarvon.
Carnarvon will issue about $50 million of new shares to institutional and sophisticated investors at 33¢ a share, a 10.8 per cent discount to yesterday’s closing price.
Euroz Securities and RBC Capital Markets will jointly manage the equity raising.