Carnarvon Energy (CVN) Trading Update summary

Strategic investment overview

• Entered agreement to acquire up to $89 million in Strike Energy shares at $0.12 per share, targeting up to 19.9% ownership.

• Investment follows a strategic review and due diligence, deemed superior to other alternatives.

• Provides exposure to Western Australia's gas and electricity markets amid rising demand.

• Entry price represents a 19.7% discount to Strike's recent 10-day VWAP.

• Retains full exposure to existing Bedout Sub-basin assets and sufficient funds for ongoing projects.

Use of funds and operational impact

• Strike will be fully funded for South Erregulla power station delivery, Walyering project life extension, and West Erregulla FID.

• Additional funding will support maturation of Perth Basin development and exploration opportunities.

Financial position and capital allocation

• Will maintain at least $96 million in cash and a US$90 million Dorado carry post-investment.

• Decision to cease previously announced potential capital return, redirecting capital to Strike investment.

• Funding for internal projects, including Dorado and Bedout Sub-basin exploration, remains intact.