The Motley Fool

Carnavon Petroleum Limited shares go ballistic on “transformational” oil hit

Carnavon Petroleum Limited (ASX: CVN) is leading the share market gainers today after it reported a “significant” oil discovery at its Caley Sandstone tenement off the coast of Western Australia.

Investors sent the stock 55% higher on the back of the news and the oil explorer suggested there could be more good news ahead with it still to complete its drilling program across the area where it has already struck the black gold.

“This is a significant discovery given the quantum of the net pay thickness, the quality of the oil and the extremely good reservoir characteristics,” boasted Carnavon’s managing director Adrian Cook.

For the 12 months to June 30 2018 Carnavon went through $10 million in operating cash flow due to the exploration costs of its drilling efforts, although it still has a healthy $63 million cash in hand with investors that participated in a recent $20 million capital raising sitting on handsome profits this afternoon.

Elsewhere in the energy space Oil Search Limited (ASX: OSH) shares are down 2.6% today after it handed in a mixed quarterly production update.

The ASX small cap up 285% with no sign of stopping...

One Australian company has developed a state of the art device that's revolutionizing hospitals all over the world. Even better, this device is so profitable that the company rakes in 90% margins. That's a lot of cash. So no wonder the stock's up 285% since 2008 – with no signs of stopping...

To discover the name and code, simply click the link below. You'll discover our expert's #1 medical technology pick... and you can decide for yourself whether to get invested today.

Click here to claim your free report.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.