Carnarvon Petroleum Limited – ASX: CVN

Carnarvon Petroleum Ltd is an oil and gas exploration company with projects located offshore off the north-west coast of Western Australia and in the Timor Sea. Carnarvon has a market capitalisation of A$484 million

Carnarvon Dorado - Development update-1

What are Carnarvon’s projects?

Carnarvon main project of significant interest is the Dorado/Roc project (located 160 kms north of Port Hedland, Carnarvon’s 20 per cent interest and Santos 80 per cent interest).

On 8 October 2019 Canavan announced an update on their Caley flow test in Dorado-3. The test was very successful. It was reported that the Caley reservoir flow test exceeded 11,000 barrels of oil per day plus associated gas. Carnarvon notes that the potential flow rate is even higher, but the flow rate was limited by the capacity of the test equipment on the rig. This is a significant oil discovery. The test indicates very high potential flow rates of around 30,000 barrels per day from each production well in the Caley reservoir. The estimated production and gross capital expenditure for the field is as follows:

  • Estimated initial gross oil production rate expected to be between 75,000-100,000 barrels per day (Carnarvon’s share 20%).
  • Estimated gross capital expenditure to first oil expected to be between $1.9 -2.2 billion (Carnarvon’s share 20%).
  • Production estimated to being in 2025

Carnarvon is a relatively small company compared with the major oil and gas companies such as BHP Group Ltd (ASX: BHP)Santos (ASX: STO) and Woodside Petroleum Ltd (ASX: WPL). The Dorado discovery could allow Carnarvon to become an established oil and gas company with significant earnings.

Carnarvon is currently trading at A$0.31.

 

Nearmap Limited – ASX: NEA

NEARMAP - GROWTH STOCK2.png-1

Nearmap Ltd is a technological company that specialises in high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. Nearmap has a market capitalisation of A$1.2 billion.

On the 4 November 2019, Nearmap released notes on their annual general meeting (AGM). Nearmap displayed growth charts of Australia – New Zealand and North America as shown in figure 1.

Figure 1

NEARMAP - GROWTH STOCK-1

Source: Nearmap 2019 AGM presentation

As shown in figure 1, Nearmap’s North America market remains the key growth opportunity compared with Australia and New Zealand in the coming years. Additionally, the growth in portfolio lifetime value is impressive, with future growth expected due to Nearmap’s expansion strategy into North America and potentially Europe and Asia.

The outlook for Nearmap is positive, as it could become the global leader within the market of location intelligence. Nearmap’s management notes:

With our unique technology and business model which no other aerial imagery company has been able to replicate at scale, Nearmap continues to focus on the global opportunity to become the world’s leading provider of subscription-based location intelligence.

Nearmap is currently trading at A$2.66.

 


 

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December 13, 2019