Key Highlights

  • Carnarvon Energy reported on 9 October 2026 that it held approximately A$97 million in cash, no debt and a US$90 million Dorado development carry at 30 September 2026.
  • The Transocean Equinox rig has been contracted for the 2027 Bedout drilling campaign, with drilling targeted to begin from April 2027 subject to environmental plan approval.
  • Ara, the most likely firm well, has a 37% geological chance of success and prospective resources of 191 mmboe (gross, unrisked Pmean).

Shares in Carnarvon Energy Limited closed at $0.10 on 27 October 2026, down 4.76% for the session. The ASX 200 closed at 8,850.1, up 0.46%, while the energy sector index ended at 11,074.7, up 0.63%. Brent crude oil slipped 0.60% to USD 115.15 as diplomatic efforts to ease the U.S.-Israeli war with Iran reduced concerns over further regional escalation. Carnarvon Energy Limited (ASX:CVN) holds interests of 10% to 20% in the Bedout Sub-basin permits offshore Western Australia, operated by Santos, and a 19.9% holding in Strike Energy Ltd (ASX:STX), according to its quarterly report.

Latest Development: Quarterly Activities Report

On 9 October 2026, Carnarvon released its quarterly activities report for the period ended 30 September 2026. The company said it ended the quarter with approximately A$97 million in cash, no debt, a 19.9% stake in Strike Energy and a US$90 million future Dorado development cost carry.

Carnarvon stated that its administrative, corporate and staff costs were funded by interest earned on its cash holdings. Net exploration and evaluation outflow was A$496 thousand, mainly relating to environmental plan preparation for 2027 drilling.

Latest Development: 2027 Bedout Exploration Campaign

Carnarvon said it contracted the Transocean Equinox semi-submersible for a multi-well campaign, with one firm well and one contingent well in its exploration permits. Environmental plans remain on track for approval ahead of an April 2027 start, a timing the company said was selected to largely avoid the main Western Australian cyclone season. The contingent well is expected to be firmed up in the coming quarter, in line with joint venture budgeting and approvals.

If both wells are drilled, the expected cost to Carnarvon is approximately A$20 million, to be funded from current cash. CEO Philip Huizenga said Ara is expected to commence the campaign, and described it as a play-opening test for the northern part of the acreage.

  • Ara is in WA-435-P (Carnarvon 10%) and lies about 80 km north of the Dorado field
  • The company said fluid type cannot be reliably determined pre-drill, so Ara may contain oil and/or gas
  • Four discoveries from six wells drilled on modern 3D seismic, a success rate of approximately 67% according to the company

Latest Development: Dorado Project Status

Carnarvon said Dorado, in WA-64-L (Carnarvon 10%, Santos 80% and operator), remains FEED-ready. Pre-FEED work completed in 2024 indicated a plateau rate of approximately 60,000 barrels of oil per day, and the company estimates gross 2C resources of 249 million barrels of light oil and condensate and 1.1 trillion cubic feet of gas.

The Phase 1 concept involves a single wellhead platform supporting up to twelve wells tied back to an FPSO. Carnarvon said first oil is approximately three years from FID, and net upfront capital expenditure is estimated at below approximately US$200 million, of which US$90 million is funded by the existing carry. The operator has indicated development work will recommence in line with evaluation of further Bedout resources.

Risks and Catalysts on Watch

The report identifies several milestones and conditions.

  • Environmental plan approval is required ahead of drilling, which is targeted to start from April 2027.
  • The contingent well is expected to be firmed up during the upcoming quarter, subject to joint venture budgeting and approvals.
  • Prospective resources are undiscovered and carry both a risk of discovery and a risk of development, according to the company's cautionary statement.
  • Carnarvon is working with the operator and joint venture on the timing for recommencing Dorado development activities and has said it will update the market as decisions are made.
  • For the next quarter, the company forecast A$900 thousand to A$1.2 million of Bedout exploration expenditure and A$500 thousand to A$800 thousand of corporate and other costs.

In Summary

Carnarvon Energy's 9 October 2026 quarterly report set out its cash position, the contracted rig for the 2027 Bedout campaign, the Ara prospect data and the status of the Dorado project, with decisions on timing still to be made with the operator and joint venture.