The exploration prospects around Dorado, such as Pavo and Apus, are looking attractive on the new Keraduren 3D seismic data. There are also new prospects showing up on the 3D seismic data.
Carnarvon is of the view that the current spot prices for oil do not represent longer term prices expected to be realised in ‘normal’ market conditions.
Carnarvon’s Managing Director and CEO, Adrian Cook said: “We have a very strong suite of assets and opportunities in our business, most particularly in and around the Dorado field. We have experienced market volatility in the past, such as with oil prices falling in 2015. During those times we also carefully assessed the situation and felt confident to remain active, working through the uncertainty and volatility that was present at the time.
Taking this considered approach put the company in an incredibly strong position that resulted in the discovery of the Dorado field in 2018.
We have once again taken the time to carefully assess market conditions. Our strong conviction is that the COVID-19 virus issue and low oil prices will be resolved in time. We are of the view that the most appropriate course of action at the current time is to continue to focus on the delivery of our plans, and that includes supporting the operator in advancing the Dorado development.
Importantly, through careful management, we are in a position to proceed with our plans because of the very strong financial position of the company.
At 31 December 2019 we reported cash of AUS$119 million. Since this time, we have been very prudent with our outlays and we will have more than enough financial resources available to cover our 2020 expenditure. Based on our current forecasts, we will also have more than enough to reach the Final Investment Decision for the Dorado liquids development.”