Carnarvon Energy Limited (Carnarvon or the Company) provides an update on the
Company锟絪 activities and financial position as at 31 December 2025.
Bedout Sub-basin (Dorado, Pavo and Exploration)
锟� Progressed procurement of long-lead items and continued environment approval
process ahead of the H1 2027 exploration drilling program.
锟� The upcoming drilling program will target the northern play fairway, seeking to test a very
large prospect with significant upside beyond the existing 450 million boe (equivalent of
gross 2C resources) already discovered.
锟� The basin-wide seismic mega merge project has enhanced prospectivity interpretation
with a single, high-resolution dataset covering over 80% of Carnarvon锟絪 exploration
permits.
Corporate and Financial
锟� Maintained a strong balance sheet with $98 million in cash, no debt, and a US$90 million
development carry for the Dorado project.
锟� Strategic investment in Strike Energy Limited (ASX:STX) (Strike) completed in the previous
quarter, maintaining a 19.9% equity interest.
锟� Continued a lean corporate structure where administrative and corporate costs are offset
by interest earned on cash holdings.
Carnarvon锟絪 CEO, Philip Huizenga, commented:
锟絃ooking ahead to 2026 and 2027, we are energised by the immense latent value within our
portfolio. With high-resolution seismic data now covering the majority of our permits and a
clear plan to return to exploration drilling in the first half of 2027, we are well-positioned to
unlock the next phase of value for our shareholders. We remain committed to maintaining a
lean corporate structure and driving the Dorado development toward production to meet the
robust demand for light, sweet crudes across Asia and in Australia."
"Carnarvon has also solidified its transition into a diversified energy company with a clear
pathway for growth. By securing our position as the largest shareholder in Strike Energy in the
previous quarter, we have not only gained exposure to near-term gas production and the WA
electricity market but have done so while preserving the financial strength required to advance
our world-class Bedout Sub-basin assets.
Carnarvon continues to work closely with Strike Energy to ensure the timely delivery of its
development projects, specifically the South Erregulla gas-fired peaking plant and the West
Erregulla gas development.锟�
Bedout Exploration
WA-435,6,7&8-P (Carnarvon 10-20%, Santos is the operator)
The Bedout Sub basin, located offshore Western Australia, remains one of the most prospective
and technically advanced exploration regions in the country.
During the quarter, the Bedout Joint Venture continued to progress regulatory and operational
readiness activities, including advancement of the required multi well Environmental Plan and
procurement of key long lead items. Tender processes for securing an offshore drilling rig were
also well progressed.
The Joint Venture is working towards completing these activities during the year to commence
drilling in the first half of 2027. The exploration campaign is preparing to target additional
significant gas resources in the northern play fairway which would be capable of underpinning
a future gas export development, complementing the liquids resources already discovered at
Dorado and Pavo.
Exploration within the basin has been greatly enhanced by the recently completed Bedout
Mega Merge seismic reprocessing project which has improved subsurface resolution across
more than 15,000 square kilometres within the basin. Interpretation work undertaken during
the quarter on this improved imaging has identified the potential for previously undetected
structural and stratigraphic features. Ongoing work will concentrate on refining the definition
of the basin锟絪 prospective resource base and associated risk profile.
The exploration potential within the Bedout area is substantial and Carnarvon looks forward to
returning to exploration drilling in this highly prospective acreage. The Company will provide
updates on the campaign scheduled for early next year as key activities are completed.
Project Development
Dorado WA-64-L (Carnarvon 10%, Santos 80%, operator)
The Dorado oil and gas field, located approximately 150 kilometres offshore Western Australia
in around 90 metres of water, is one of the largest undeveloped oil discoveries in Australia. A
preliminary development plan has been completed for the field, which considers a staged
approach, beginning with liquids production (Phase 1) followed by a potential gas export phase
(Phase 2).
The Phase 1 liquids development concept, refined in 2024, is based on a single wellhead
platform supporting up to twelve wells tied back to a Floating Production Storage and
Offloading (FPSO) facility. This configuration has been designed to deliver efficient liquids
production while allowing for potential future tiebacks from nearby fields in the Bedout Subbasin, such as Pavo.
In early 2025, the Operator advised that progress on the Dorado project would be deferred to
allow further appraisal of the broader Bedout exploration potential prior to a Final Investment
Decision. While the joint venture continues to recognise the quality and scale of the discovered
resources within the Dorado and surrounding fields, which Carnarvon estimates contain a total
of 249 million barrels of light oil and condensate (gross, 2C) and 1.1 trillion standard cubic feet of
gas (gross, 2C), the area also offers significant upside potential, with mean prospective
resources of approximately 1.6 billion barrels of liquids and 9 trillion cubic feet of gas (Pmean,
gross) (refer to ASX announcement 1 September 2023).
Drilling activity in the region is expected to resume in the first half of 2027, and the Operator
has indicated that project development work will recommence in line with the evaluation of
further Bedout basin resources.
The Company continues to work with the Operator (Santos) to progress the Dorado and Pavo
projects. Efforts are centred on innovative solutions to accelerate the development timeline
and move toward a Final Investment Decision (FID) in a capital-efficient manner.
Corporate
Strategic Investment into Strike Energy (Strike Investment)
Carnarvon entered into a subscription agreement in July 2025 with Strike Energy Limited
(Strike) whereby it was issued A$86 million of fully paid ordinary shares in Strike at an issue
price of $0.12 per Strike Share, for a shareholding in Strike of 19.9%.
Carnarvon has appointed its non-executive director, Mr William Barker, to the Strike Board
ensuring Carnarvon's active involvement in overseeing the delivery of key Perth Basin gas and
power projects, including the South Erregulla 85MW peaking plant, which is targeted for
commissioning in 2026.
Strike Energy is a compelling investment opportunity given its strategic acreage in the Perth
Basin, proximity to existing infrastructure, and portfolio of quality discovered and prospective
gas resources. The investment provides Carnarvon with exposure to the Western Australian
domestic gas and electricity markets and complements the Company锟絪 oil weighted portfolio.
Carnarvon锟絪 19.9% equity interest in Strike provides financial exposure to near-term production
and market upside while preserving the Company锟絪 capacity to progress its own priorities
within the Bedout Sub-basin. This represents a prudent and strategically balanced deployment
of capital consistent with Carnarvon锟絪 disciplined approach to financial management and longterm value creation
Cash and liquidity position
The Company ended the quarter with approximately A$98million in cash, no debt, and a 19.9%
stake in Strike Energy.
Carnarvon also maintains US$90 million in future Dorado development cost carry.
During the quarter, the administrative, corporate and staff costs of the Company were funded
by the interest earned on the Company锟絪 cash holdings.
Resources
All prospective resources in this update are prepared as at 4 October 2022, 1 September 2023 and 30
June 2025 pursuant to the announcements released to the ASX on 4 October 2022, 1 September 2023
and 28 August 2025. The estimates of prospective resources included in this update have been
prepared in accordance with the definitions and guidelines set forth in the SPE-PRMS. Carnarvon is
not aware of any new information or data that materially affects the information included in this
update, and that all material assumptions and technical parameters underpinning the estimates in
this update continue to apply and have not materially changed.
Prospective resources have been reported using the best estimate. Prospects are made up of
multiple potential reservoir horizons and these are 锟絩olled-up锟� statistically into a single prospective
resource. These prospective resources are statistically aggregated up to the field level and
arithmetically summed to the project level.
Conversion from gas to barrels of oil equivalent is based on Gross Heating Value. Carnarvon uses a
constant conversion factor of 5.7 Bscf/MMboe. Volumes of oil and condensate, defined as 锟紺5 plus锟�
petroleum components, are converted from MMbbl to MMboe on a 1:1 ratio.
Competent Person Statement Information
The resource estimates outlined in this report were compiled by Carnarvon锟絪 Chief Executive Officer,
Mr Philip Huizenga, who is a full-time employee of the Company.
Mr Huizenga has over 25 years锟� experience in petroleum exploration and engineering. Mr Huizenga
holds a Bachelor锟絪 Degree in Engineering, a Master锟絪 Degree in Petroleum Engineering and is a
member of the Society of Petroleum Engineers. Mr Huizenga is qualified in accordance with ASX
Listing Rules and has consented to the form and context in which this statement appears.