Carnarvon Energy (ASX:CVN) has reported progress on its Dorado oil and gas project in its Q3 2024 update. The company, which focuses on exploration and development in the Bedout Sub-basin off the coast of Western Australia, is advancing toward a final investment decision (FID) in 2025. During this quarter, Carnarvon worked on technical studies to support a re-entry into the Front-End Engineering and Design (FEED) phase, expected in Q4 2024.
The Dorado project, a joint venture with Santos (ASX:STO) (Carnarvon holds a 10% stake), aims to develop Australia's largest undeveloped oil field in stages. Phase 1 will focus on liquid extraction using a fixed wellhead platform connected to a Floating Production, Storage and Offtake (FPSO) vessel.
Financially, Carnarvon maintains a robust balance sheet with A$177 million in cash and no debt. The company also benefits from a US$90 million free carry for Dorado development costs.
In the Bedout Sub-basin, Carnarvon’s exploration strategy is also targeting gas resources to support future phases of Dorado’s development. While the next round of exploration drilling is scheduled for 2026, the company remains optimistic about unlocking additional resources in this highly prospective region.
