Carnarvon Energy to scale heights with play for Woodside’s Pyrenees & Macedon assets, page-22

I agree with oilpete sentiments.
I see that management have nailed the right moves over the last few years and have improved the companies position
In many respects oil company management is like poker players at the table trying to improve their hand into a winning one and only being able to estimate the possibilities the next move provides that.
The recent problem for CVN was their ability to fund Dorado development, now fixed, and having the company assets timetable of cashflow set by Santos not themselves over the FID. These 2 issues have killed the shareprice.
Personally I am excited at this news and what it could mean for CVN. CASHFLOW. These available assets already are producing cashflow, has history, certainty and anticipated future income. With that comes options like debt financing and presales.
Capital raising from shareholders when the shareprice is already under company asset value seams unlikely to me. It's a more expensive option at the end of the day.
One other angle I like about this opportunity is that management can seek the percentage of one or both assets that they see fit the company and it current situation knowing that a cash/debt payment now for the asset/s can be met with a calculation of what is required over and above revenue income in the future to fund Dorado.
A company with guaranteed producing income is much easier to obtain debt finance than one without because the risk is lower for the financier.
Whats at play is the future not present price of oil and gas, the deal CVN management decide and the timing of future funding for Dorado. That picture is vastly different to what the future looked like with Thailand.
The other big positive I see it that a producing income stream will attract more attention to the company and its shareprice