Carnarvon Energy (ASX:CVN) Up About 5% in a Year: What Is the Company Drilling Next?

Sonal Goyal

20 October 2026 08:16 PM AEDT

Carnarvon Energy (ASX:CVN) Up About 5% in a Year: What Is the Company Drilling Next?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key highlights

Carnarvon Energy (ASX:CVN) closed unchanged at $0.10 on 20 October 2026, while the S&P/ASX 200 Energy index fell 1.31%.
The shares are up approximately 5% over the past year and approximately 16% year to date.
Carnarvon’s 9 October 2026 quarterly report showed A$97 million in cash, no debt and a rig contracted for 2027 Bedout drilling.

Carnarvon Energy Limited (ASX:CVN) closed at $0.10 on 20 October 2026, unchanged on the day at a move of 0.00%. The S&P/ASX 200 Energy index (XEJ) closed 1.31% lower at 11,165.60, a fall of 148.40 points, while the broader S&P/ASX 200 (XJO) slipped 0.33% to 8,816.90.

Over the past 12 months the stock has gained approximately 5%, and on a year-to-date basis it is up approximately 16%. Working back from the closing price, an annual gain of approximately 5% implies a level of about $0.095 a year earlier. The shares therefore finished flat in a session when the sector index fell, while holding a modest gain across both the 12-month and calendar-year windows.

About Carnarvon Energy

Carnarvon Energy Limited is an Australian oil and gas company with interests in the Bedout Sub-basin offshore Western Australia and a 10% interest in the Dorado oil and gas field, which sits in permit WA-64-L about 150 kilometres offshore from Port Hedland and is operated by Santos. It also holds a strategic 19.9% stake in Strike Energy Ltd (ASX:STX).

Its Bedout exploration permits, WA-435, 436, 437 and 438-P, are operated by Santos, with Carnarvon holding between 10% and 20%.

Latest development

The share price information above is reported separately from the company’s quarterly update. On 9 October 2026 Carnarvon released its quarterly activities report for the period ended 30 September 2026. The company said the Transocean Equinox semi-submersible drilling rig has been contracted for a 2027 Bedout campaign, environmental plan approvals are on track, and drilling is expected to start from April 2027, a date chosen largely to avoid Western Australia’s main cyclone season.

The campaign includes one firm well and one contingent well in Carnarvon’s permits. The most likely firm well is Ara, which Carnarvon describes as a play-opening prospect in the north of WA-435-P with a 37% geological chance of success and 191 million barrels of oil equivalent of prospective resources on a gross, unrisked basis. The company said that if both wells are drilled the cost to Carnarvon would be roughly A$20 million, funded from its cash balance.

Carnarvon reported A$97 million in cash, no debt and a US$90 million development carry for the Dorado project. It said Dorado remains ready for front-end engineering and design, with pre-FEED work in 2024 showing a plateau rate of about 60,000 barrels of oil per day. The report cited industry data showing Australia’s crude oil production fell to about 32,000 barrels per day in the June 2026 quarter and highlighted Dorado as the only major new oil project on the horizon. It also noted that its Strike Energy holding is in a company that has announced a path forward for the West Erregulla development.

Sector context

Exploration and development of liquids projects in Australia has attracted interest because domestic crude production has been falling. Carnarvon cited industry data showing output of about 32,000 barrels per day in the June 2026 quarter, and highlighted Dorado as the only major new oil project on the horizon.

Offshore drilling in the north-west of Australia depends on rig availability and the cyclone calendar, which is why Carnarvon’s campaign is timed to start in April 2027. Frontier exploration wells carry high geological risk, with stated chances of success well below 50%.

Risks

Exploration drilling carries geological risk. Ara’s stated chance of success is 37%, which means the more likely outcome by the company’s own estimate is that it does not find a commercial discovery. The contingent well has still to be firmed up in joint venture budgeting.

Carnarvon does not operate its main assets and depends on Santos and joint venture approvals for timing and spending. Dorado remains pre-development, with no final investment decision, and the company has no production revenue.

Catalysts to watch

Items to watch include approval of the environment plans, firming of the contingent Bedout well, the start of drilling from April 2027, any progress on Dorado’s front-end engineering and design and developments at West Erregulla through the Strike Energy holding.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.