Carnarvon Energy (CVN) Trading Update summary

Project development and optimisation

• Dorado Phase 1 liquids project optimisation is nearing completion, aiming to lower upfront CAPEX and improve economics, with FEED re-entry planned for later in 2024 and FID targeted for 2025.

• Joint Venture is evaluating idle FPSOs for redeployment, which could further reduce costs and time to first oil.

• Project approvals are progressing, with environmental plans for drilling and installation underway and production license already secured.

• CAPEX prior to first oil is expected to be below previous guidance of US$2 billion (gross), with Carnarvon fully funded for its share.

Exploration and asset management

• Preparatory work for Bedout Sub-basin exploration drilling in 2025 is advanced, focusing on expanding gas resources for Dorado Phase 2.

• Ara prospect in WA-435-P is the preferred drill target, with potential to de-risk nearby prospects and add significant gas and condensate resources.

• Surrendered non-core permits (WA-155-P, EP509, TP29) to focus on Bedout Sub-basin.

Corporate strategy and governance

• J.P. Morgan is assisting in exploring strategic options to maximise shareholder value, including alternative transactions.

• Rob Black became Chair effective 1 July 2024, with Bill Foster remaining as non-executive director until a replacement is appointed.

• Exited biorefinery business with no residual liabilities.