CVN CARNARVON PETROLEUM LIMITEDCrude Oil - Overnight Price: $0.27Canaccord Genuity rates ((CVN)) as Buy (1) -Dorado's operator Santos ((STO)) has formally announced that the development has entered front-end-engineering and design with a target of project sanction by mid-2022.Canaccord Genuity believes this is a major milestone for the project, and based on current estimates Dorado - of which Carnarvon Petroleum controls 20% - will have bottom quartile operating costs (US$5.0/bbl), capex of US$2.0bn, and peak production of 75-100kbbl/d.Canaccord values Carnarvon's share of Dorado at $560m which the broker has risked at 85% for the Stage 1 liquids development and 50% for Stage 2.Given the location of Dorado and the running room available, the broker believes an argument can be mounted that this is a 'top-end of the range resource'.The Buy rating is unchanged, and the price target increases to $0.44 from $0.42.This report was issued on June 29, 2021.Target price is $0.44 Current Price is $0.27 Difference: $0.17If CVN meets the Canaccord Genuity target it will return approximately 63% (excluding dividends, fees and charges).The company's fiscal year ends in June.
CVN Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
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