Carnarvon seeking $84m in capital

Carnarvon Petroleum plans a $79 million share placement and a $5 million share purchase plan to fund ongoing appraisal activities and initial development phases of its Dorado oil and gas discovery.

Under the institutional placement, Carnarvon will issue shares at 42.5 cents each, an 8.2 per cent discount to its last closing price.

Euroz and JP Morgan will fully underwrite the placement.

In addition, the Adrian Cook-led Carnarvon will offer existing investors the opportunity to partake in a $5 million share purchase plan.

The share purchase plan is not underwritten and will be the same price as the placement.

The capital raised will go towards front end engineering design studies for its Dorado development in the North West Shelf.

Additionally, funds will also be used for the ongoing appraisal of Dorado, including 3D seismic and well costs.