Ann: Annual General Meeting Presentation 2019, page-44

hmmm apologies not sure why one can't just copy paste with same format from Word lol

Here are my notes the AGM from yesterday

Governance

·Responding to a query from the New Zealand Shareholders’ Association representative, although the company has a diversity policy the Board has no current intention of appointing a female or indigenous person as a sixth director (Chairman).

Dorado

·Liquids development currently preferred over a full field development, as both easier and quicker (90 metre water depth simplifies much of the liquids development).

·Going forward, even though the company has a minority 20% interest compared to the current 80% held by Santos, some Carnarvon staff have been freed up to closely monitor and review Santos’ FEED/FID process – a smaller team like Carnarvon’s can be less bureaucratic and may spot something that the bigger Santos team may have missed.

·FEED/FID to take up almost all of 2020.

·There is always some possibility that FEED/FID may be delayed, because Santos first want to explore their new exploration acreage with BP. Nevertheless in reality from all Santos’ public announcements to date, a timely Dorado development is “core” to their strategy.

·The Joint Operating Agreement requires unanimous agreement of the parties for key decisions. Refer to the capital raising documentation for highlights of pre-emptive rights each party may have.

·Aiming for first production in 2024/2025.

·0% sulphur product should be priced attractively, in light of the new IMO 2020 marine fuel regulations.

Exploration

·Four central permits (WA-435-P to WA-438-P) cover the “lion’s share of the basin proper”.

·Board are comfortable with this exposure – no need to be involved in the new Santos/BP permit to the west or the 3D Oil permit to the east.

·The Keraudren 3D seismic program was cut short, so the company is looking in the next seismic program to extend coverage northeast from the Roc-Pavo dotted line.

·Carnarvon has explained to Santos that they wish to properly evaluate the Keraudren 3Dfirst, especially to work out why Roc South failed, before proceeding with drilling Apus and Pavo.

·Hence no drilling of Apus or Pavo planned for 2020 (and no timeline).

·WA-523-P next to Buffalo, and in a known producing oil and gas basin, also has some interesting prospects.

Share Price and Funding Requirements

·Company is aware there is one institutional short-seller (cost of borrow around 7%).

·However there is no drilling planned for the next year, nor a guarantee of a successful Buffalo farm-out [to boost the share price].

·Company also isn’t considering any share buy-back to boost the share price either,because “capital is precious”.

·Carnarvon is fully funded to the end of 2020 (and a bit beyond), so no need for any immediate capital raising.

·Hence,management embarking on an Eastern States investor roadshow to persuade institutional investors to buy shares on market.

·May investigate selling down a small portion of Dorado to fund development – this would also put a price on Dorado to enable investors to value Carnarvon shares.

·All four banks appear very keen to lend to a customer like Carnarvon, as there are very few, if any, large oil and condensate projects/customers in shallow water OECD countries that require bank financing.

Other Matters – Climate Change

·Both the Chairman and MD responded generically to questions raised about the impact of climate change policies.