Finding value in offshore O&G projects - dissecting Carnarvon Petroleum (CVN.AX)

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There has been a lot of recent discussion on Carnarvon Petroleum (‘CVN’) which is being talked about as a ‘value play’ due to its cash holding and assets. A recent board upheaval has brought new life into the stock with a pivot in corporate strategy led by a couple of the largest shareholders.

So what does value look like in offshore Oil & Gas?

Broadly, the key levers here are:

• Time frames

• Incentives

• Opportunity cost

But first of all, the scene should be set.