Carnarvon Energy Secures Rig and Boosts Bedout Resources by 92%

• Transocean Equinox rig contracted for 2027 Bedout drilling campaign
• 92% increase in Bedout prospective resources to 6.256 billion barrels oil equivalent
• Firm well targeting Ara prospect with contingent well options
• Strong balance sheet with A$98 million cash and no debt
• Dorado project development carry of US$90 million supports future funding

Rig Contracted for High-Impact 2027 Bedout Campaign

Carnarvon Energy (ASX:CVN) has locked in the Transocean Equinox semi-submersible rig for a pivotal multi-well drilling campaign in the Bedout Sub-basin, set to commence in April 2027. The campaign includes one firm well and one contingent well within Carnarvon’s exploration permits, with prospective targets including Ara, Yuma, Goats Eye, and Hutton. The total estimated drilling cost to Carnarvon is around A$20 million, comfortably funded from its current cash reserves.

Seismic MegaMerge Project Nearly Doubles Resource Estimates

Following the completion of the Bedout 3D Seismic MegaMerge project, Carnarvon reported a 92% increase in its prospective resource inventory, now estimating 6,256 million barrels of oil equivalent (mmboe) gross, unrisked Pmean across 130 prospects. This marks a substantial uplift from 3,263 mmboe a year earlier, reflecting enhanced subsurface imaging through the integration of multiple high-quality seismic datasets. The net prospective resource to Carnarvon stands at 1,021 mmboe (unrisked Pmean).

Ara Prospect Leads Exploration Targets

The Ara prospect is the likely firm well for the 2027 campaign, representing a genuine play-opening test approximately 80 kilometres north of the Dorado field. With an unrisked prospective resource of nearly 200 million barrels of oil equivalent and a better than one-in-three chance of success, Ara offers a significant potential to de-risk a large portion of the company’s portfolio. Success here could pave the way for drilling the contingent well at Yuma, which shares similar geological features.

Financial Strength Supports Exploration and Development

Carnarvon ended the quarter with a robust balance sheet, holding A$98 million in cash and no debt. The company also benefits from a US$90 million development carry for the Dorado project, triggered upon reaching final investment decision (FID). This financial position allows Carnarvon to fund its upcoming exploration program while preserving capital for future development activities. The company forecasts expenditure of A$1 million to A$1.3 million on Bedout exploration and A$900,000 to A$1.2 million on corporate costs in the coming quarter.

Dorado Project Remains a Key Liquids-Rich Asset

The Dorado oil and gas field, located offshore Western Australia and operated by Santos, remains one of Australia’s most significant undeveloped oil discoveries. Carnarvon holds a 10% interest in Dorado, which contains gross 2C resources of 249 million barrels of light oil and condensate plus 1.1 trillion cubic feet of gas. A preliminary development plan proposes a staged approach starting with liquids production via a single wellhead platform and FPSO, with potential for future tie-ins from nearby fields such as Pavo. Project development work is expected to resume alongside the evaluation of further Bedout resources following the 2027 drilling campaign.

Bottom Line?

Carnarvon’s strengthened resource base and solid cash reserves set the stage for a critical 2027 exploration campaign that could reshape the Bedout Sub-basin’s prospects and advance Dorado’s development trajectory.

Questions in the middle?

• Will the Ara prospect deliver the anticipated play-opening discovery to unlock the northern Bedout acreage?
• How will the results of the contingent well influence the valuation and development strategies for Carnarvon’s broader portfolio?
• What impact will evolving regional energy security dynamics have on the timing and scale of Dorado’s final investment decision?