Carnarvon Energy Restarts Process to Return Capital to Shareholders; Shares Rise 5%
Carnarvon Energy (ASX:CVN) restarted a process to allow the company to return capital to shareholders, according to a Monday Australian bourse filing.
The firm's board determined that the business may hold cash that is surplus to its current requirements and proposed to potentially return up to AU$0.07 per share, or AU$125 million, to shareholders, in the wake of delays in the development of the Dorado liquids project offshore Western Australia.
The firm plans to retain at least AU$62 million cash to fund the drilling of up to three wells in the Bedout sub-basin, which is planned to occur over the next four years, as well as to take the Dorado project to a final investment decision.
The proposal is subject to shareholder approval, confirmation of the Australian income tax treatment of the distribution by an Australian Taxation Office class ruling process, and no better alternative use of the capital being identified.
Carnarvon Energy's shares rose almost 5% in recent trading on Monday.
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