STTCOMP CVN FA Long MC MC: 577 undiluted SOI: 1,189,888,259 (1...

STTCOMP CVN FA Long

MC MC: 577 undiluted
SOI: 1,189,888,259 (1 million unlisted options)
Cash: 63 596 000.
Outflows 12 462 000
Debt: nil

Carnarvon Petroleum is a junior O&G explorer presently drilling Dorado 1 and Phoenix South 3 in the Bedout Sub-basin on the North West Shelf, which they hold 20% in JV with unlisted, Quadrant Energy.

They also hold 100% of Buffalo in the Timor Sea that they are planning to put back into production asap, with preparations underway to drill B10. Three wells will eventually feed a leased FPSO. Over $2B is expected in revenue over 5 years.

In recent weeks Dorado has provided what appears to be a large resource of high quality condensate, and gas, of which estimated quantities are likely to be revealed tomorrow at the end of this present trading halt.

Estimates from Phoenix drilling 'contain a gross mean recoverable prospective resource of 489 Bscf of gas and 57 million barrels of associated condensate.' The ongoing drilling at P3 that has taken over form P2 due to the excessive pressure, is also likely to be completed shortly with re-estimations of quantities.

This oil discovery is said to be the largest in Australia in the previous 30 years, and is likely to re-rate CVN considerably. Already the share price has risen from 14c in early July and peaked so far at 52c later in the month. Last traded at 48.5.

My guess is that tomorrow the rerate will commence phase 2. As such, any high opening will work against this tip, but with results of Phoenix 3 also due, along with the Dorado revelation, and Buffalo moving along, I expect tomorrow's opening to be left far behind over the next month and beyond.

Disclaimer: all in.