Divestment of Thailand assets
18 February 2015
Highlights
Carnarvon completes divestment of its Thailand assets
Transaction consistent with the Company's strategic focus on the North West Shelf
Sale strengthens Carnarvon's balance sheet with cash of approximately A$1081 million after providing for transaction related costs
The divestment ensures Carnarvon adequately funded to explore and appraise the
Phoenix area2, including the Phoenix South oil discovery, for the foreseeable future.
Carnarvon Petroleum Limited (ASX: CVN) ("Carnarvon") is pleased to advise that the Company has completed the divestment of its remaining 20% interest in the Thailand oil production concessions L44/43, L33/43 and SW1A (Thai assets).
As announced on 4 December 2014 Carnarvon agreed to sell its remaining 20% interest in its Thai assets to the Berlanga Group for a base consideration of US$50 million plus final completion adjustments.
In addition, Carnarvon retains its US$32 million receivable in the Thai assets, agreed to as part of the
Loyz transaction announced in March 2014.
Managing Director and Chief Executive Officer, Mr Adrian Cook said, "We are pleased to have completed another important step in transitioning the Company into a well funded and well resourced North West Shelf focused business.
I'd personally like to thank the Carnarvon team for their support in reshaping the vision and strategy of the Company and for working tirelessly on completing this transaction in very challenging industry conditions.
Carnarvon now has the cash to ensure it can add value in the Phoenix area2 through further exploration and appraisal activities, fund ongoing corporate costs through the US$32 million receivable linked to Thailand oil field revenue and grow the business through further exploration activities, such as those relating to its 100% held Cerberus blocks3 in the Carnarvon Basin."
Carnarvon Petroleum was advised by Miro Advisors and King & Wood Mallesons on the divestment of its
Thailand interests.
Note: 1. Assuming an exchange rate (AUD/USD) of 0.78
Note: 2. Phoenix area refers to Carnarvon's interest in WA-435-P and WA-437-P (20%) and WA-436-P and WA-438-P (30%) Note: 3. Cerberus blocks refer to EP-457, EP-490, EP-491 and TP/27
For all enquiries please contact:
Shareholder Enquiries Media Enquires
Mr Thomson Naude Mr Tony Dawe
Company Secretary Professional Public Relations
Phone: (08) 9321 2665 (08) 9388 0944 / 0405 989 743
Email: [email protected] [email protected]
Yours faithfully
Adrian Cook Managing Director Carnarvon Petroleum
About Carnarvon Petroleum (ASX: CVN)
Carnarvon Petroleum Limited is a Perth based company listed on the Australian Securities Exchange
(ASX: CVN). The company's principal activity is oil and gas exploration and production.
Carnarvon's objective is to create material returns on its shareholder's investments, through delivering profitable and sustainable growth from the development, exploitation and commercialisation of oil and gas assets.
Carnarvon is focused on oil & gas exploration in the world-class province of the North West Shelf area off the coast of Western Australia.