Here's why the Carnarvon (ASX:CVN) share price is halted today

Investors will have to possibly wait until Wednesday for the details about the company's pending announcement.

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Key points
  • Carnarvon shares on hold at 32 cents 
  • The company plans to make an announcement regarding the Pavo-1 well on or before this Wednesday 23 March 
  • Recently, operations were suspended at the offshore well due to cyclone activity 

The Carnarvon Energy Ltd (ASX: CVN) share price won't be going anywhere on Monday. This comes as the company requested that its shares be placed in a trading halt.

At the time of writing, the energy producer's shares are frozen at 32 cents apiece.

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt

Image source: Getty Images

Why is the Carnarvon share price halted?

Prior to the market opening, the company requested the Carnarvon share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement in relation to the Pavo-1 well result.

Carnarvon has requested that the trading halt remains in place until Wednesday 23 March or following the release of the announcement, whichever comes first.

More on Pavo-1 well

Located around 160 kilometres north-east of Port Hedland in Western Australia, the offshore platform made news in recent times.

After spudding in early February, operations were halted due to cyclone activity in the region.

At the time, the Pavo-1 well drilled around 3,282 metres of measured depth (MD) before suspending works.

However, just over a week ago, the rig returned to full-manning levels with drilling and logging operations set to re-commence.

The Pavo-1 well is targeting a resource of 82 million barrels of liquid hydrocarbons in the Caley Formation sands.

Santos Ltd (ASX: STO) holds a 70% stake in Pavo-1, while Carnarvon retains the remaining 30%.

Carnarvon share price summary

Over the past 12 months, the Carnarvon share price has moved in circles ranging from 21.3 cents to 36 cents.

Particularly, since the start of the year, its shares have recorded wild swings of more than 50% in either direction.

The company's shares are down 5% in 2022.

Based on valuation grounds, Carnarvon has a market capitalisation of roughly $500.92 million, with approximately 1.57 billion shares outstanding.

Motley Fool contributor Aaron Teboneras has no position 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.

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