Insights

The Carnarvon (ASX:CVN) share price has jumped 17% this week

Carnarvon shares extend their positive run to finish the week 17% higher.
The post The Carnarvon (ASX:CVN) share price has jumped 17% this week appeared first on The Motley Fool Australia. –

The Carnarvon Petroleum Ltd (ASX: CVN) share price has continued its march higher this week, gaining 17% in the past week of trading.

Shares in the oil and gas explorer finished the week at 31 cents apiece, not too far off their 52-week high of 33.5 cents achieved in January this year.

Let’s investigate further.

What’s been fuelling Carnarvon shares lately?

It seems the elephant in the room is the price of natural gas, which has spiked to 5-year highs of US$6.215 per million British thermal units on 28 September.

The move began on 23 September, spurred on by the energy crisis in Europe in the United Kingdom that has unfolded in recent weeks.

In addition, the price of oil has climbed almost 7% in the past 2 weeks for both major oil contracts, after making a prior jump of 21% from August 20 for crude WTI, and over 20.3% for Brent crude in this time.

Around this time in September, Carnarvon announced a key update to its Buffalo project in the Timor Sea.

The release noted several progress highlights, including that the Buffalo-10 well is set to start spud in early November, and that “mid-case recoverable volume estimate is 31 million barrels”.

Carnarvon said there was a “strong likelihood” the Buffalo-10 well would confirm a “sanctionable development project, based on minimum economic field size”.

Just prior to this, Carnarvon announced that it had contracted the VALARIS JU-107 drilling rig to drill the Buffalo-10 well.

The rig will move to the Buffalo site in early November, once completed its current operations.

The report concludes that Carnarvon expects to ramp up operations at Buffalo-10 from November, but that the final timing will be “subject to the release of the rig from the previous operator… and receiving the necessary joint venture and regulatory approvals”.

What did management say?

Carnarvon managing director and CEO Adrian Cook welcomed the results, saying:

Our preparations for drilling the Buffalo-10 well are in good shape and we’re looking forward to commencing drilling relatively soon.

We continue to work well with and enjoy the support of our joint venture partner, Advance Energy Plc, who have contributed US$20 million towards the cost of the Buffalo-10 well and now hold a 50% interest in the project.

Cook said the company expected to reach the target in around 35 days once drilling started, adding that the well had the potential to be “value transforming” for Carnarvon.

The Carnarvon share price has popped from a low of 25 cents since the announcement on 22 September, to reach its highs of 31.5 cents in afternoon trade today.

Carnarvon share price snapshot

The Carnarvon share price has jumped into the green this past month, gaining 21.5% in this time.

However, it has only climbed 3.3% year to date, behind the S&P/ASX 200 index (ASX: XJO)’s return of around 9%.

Despite this, it has beaten the benchmark index over the last 12 months, posting a return of more than 44% in that time.

The post The Carnarvon (ASX:CVN) share price has jumped 17% this week appeared first on The Motley Fool Australia.

Should you invest $1,000 in Carnarvon Petroleum right now?

Before you consider Carnarvon Petroleum, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Carnarvon Petroleum wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Did Optus just get a better deal than Telstra (ASX:TLS) for its towers?
Here are the top 10 ASX shares today

The Sezzle (ASX:SZL) share price tumbled 13% in September. Is it a buy?
Yancoal (ASX:YAL) share price surges 11% to a new 52-week high
Why is the Nexus Minerals (ASX:NXM) share price rocketing 28% today?

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!