Carnarvon completes Thai Asset divestment

THE ROADHOUSE BOWSER: Carnarvon Petroleum (ASX: CVN) announced it has completed the divestment of the company’s remaining 20 per cent interest in the Thailand oil production concessions L44/43, L33/43 and SW1A.

The company flagged the divestment in December 2014 saying it had agreed to sell its remaining 20 per cent 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, which was agreed to as part of the Loyz transaction the company announced in March 2014.

“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,” Carnarvon Petroleum managing director and chief executive officer Adrian Cook said in the company’s announcement to the Australian Securities Exchange.

“Carnarvon now has the cash to ensure it can add value in the Phoenix area 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 per cent-held Cerberus blocks in the Carnarvon Basin.”