- 01April 2027 Bedout drilling planned; Ara leads.
- 02Ara holds 191mmboe unrisked resources; 37% geological success chance.
- 03Dorado development work may resume.
Carnarvon Energy (ASX: CVN) is preparing for an April 2027 exploration campaign in Western Australia’s offshore Bedout Sub-basin after securing the Transocean Equinox semi-submersible drilling rig.
The program includes one firm well and another contingent well across permits operated by Santos (ASX: STO), with the Ara prospect emerging as the preferred opening target.
Ara carries gross unrisked mean prospective resources of 191 million barrels of oil equivalent (mmboe) and a 37% geological chance of success, although its estimated hydrocarbons remain undiscovered.
Carnarvon ended September with A$97 million in cash and no debt, positioning it to fund an anticipated drilling contribution of approximately A$20m if both wells proceed.
Ara Prospect Leads Plans
The proposed Ara well would test a new geological play about 80 kilometres north of the Dorado field within permit WA-435-P, in which Carnarvon holds a 10% interest.
Its primary objective is a stratigraphic trap in the Archer Formation, while a secondary target lies in the Late Triassic Cuvier Member, with either potentially containing oil or gas.
“Ara is a very large prospect […], and one reason we are attracted to it, aside from its size and quality, is that it is a genuine play-opening test for the northern part of our acreage,” chief executive officer Philip Huizenga said.
Environmental plans are progressing towards approval ahead of the planned start, while the joint venture expects to firm up the contingent well during the current quarter.
Dorado Remains on Agenda
Carnarvon is also working with the operator on restarting development activity at Dorado, which remains ready for front-end engineering and design (FEED) following earlier technical work.
The preliminary development concept envisages liquids production through a wellhead platform and floating production, storage, and offloading vessel, with a possible subsequent gas export phase.
Engineering work indicates a plateau capacity of approximately 60,000 barrels of oil per day, while gross discovered contingent resources across Dorado and nearby fields are estimated at 249 million barrels of liquids and 1.1 trillion cubic feet of gas.
Carnarvon anticipates that an abbreviated FEED process could position Dorado for a final investment decision, with first oil approximately three years after FID, subject to development decisions.
Its estimated upfront share of development spending is below US$200m, supported by an existing US$90m development carry, while the timetable remains dependent on discussions with the operator and joint venture.
Further Resource Scale
Carnarvon has interests ranging from 10% to 20% across its Bedout exploration permits, and is seeking to establish the scale of further resources beyond existing discoveries.
The company also retains a 19.9% investment in Strike Energy (ASX: STX), which has outlined a proposed development pathway for its West Erregulla gas field involving the planned Belisama gas plant.
Interest receipts of A$1.283m offset staff and administration payments during the September quarter, delivering a modest net operating cash inflow before exploration and other investing expenditure.
With environmental planning and drilling preparations continuing, Carnarvon expects to spend A$900,000 to A$1.2m on Bedout exploration during the December quarter, alongside A$500,000 to A$800,000 in corporate costs.
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