Carnarvon sells down Thai stake

UPDATE 1.35pm: Carnarvon Petroleum will net $US65 million ($72 million) in the selldown of its stake in its Thai project assets.

Singapore listed Loyz Energy will buy half of Carnarvon's 40 per cent stake in three exploration and production assets north of Bangkok.

Under the new ownership arrangements, ECO Orient will retain its 60 per cent stake in the assets with Carnarvon holding 20 per cent and Loyz the other 20 per cent.

Carnarvon said the deal would strengthen its balance sheet ahead of exploration and appraisal activities associated with the Phoenix South-1 well in the North West Shelf.

Carnarvon managing director and chief executive Adrian Cook said the company looked forward to welcoming Loyz Energy to the joint venture and working with them on building value from the asset.

"This transaction enables Carnarvon to commercialise a significant proportion of the value of our Thai assets and ensures we are strongly focused on creating value from success in our North West Shelf endeavours with the first well expected to spud in the June quarter," he said.

Carnarvon shares closed up 0.6 cents, or 9.38 per cent, at seven cents after touching an earlier high of 7.9 cents.

The West Australian

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