PERTH (miningweekly.com) – ASX-listed Carnarvon Energy will raise A$70-million in a fully underwritten institutional placement to help finance the Dorado development and to progress its growth opportunities.

The company on Monday said that it would issue 234.8-million shares, at a price of 30c each under its existing placement capacity.

The offer price represented a 9.1% discount to Carnarvon Energy’s last closing price on March 25, and an 18% discount to the company’s five-day volume weighted average share price.

“The proceeds from the institutional placement will be used to bring the Dorado liquids development to a final investment decision in 2022. Dorado is a world class resource, containing high-quality reservoirs and fluids in shallow water which we expect to result in strong returns for our shareholders,’ said MD and CEO 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.”

Dorado is an integrated oil and gas project which is planned to be developed in two phases. The initial development involves the production of oil and condensate through a well head platform and floating production, storage and offloading. Gas will be reinjected in the initial phase to enhance oil and condensate recovery, followed by a planned future phase of gas production to backfill Santos’ domestic gas infrastructure in Western Australia.

Oil and gas major Santos has an 80% interest in the Dorado project and is operator, and the remaining interest is held by Carnarvon Petroleum.

The project is currently in the front-end engineering design phase, and the partners are targeting an oil production rate of between 75 000 bbl/d and 100 000 bbl/d.