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Highlights
- Carnarvon Energy progresses toward a 2025 final decision on the Dorado oil and gas project.
- The company’s current focus includes technical and engineering studies to re-enter the FEED phase.
- Strong cash reserves and no debt bolster Carnarvon's plans in Australia’s Bedout Sub-basin.
Carnarvon Energy (ASX:CVN) has reported promising advancements in its highly anticipated Dorado oil and gas project, bringing it closer to a final decision expected in 2025. This update comes as part of Carnarvon’s Q3 2024 report, highlighting ongoing work and new milestones in developing one of Australia’s most substantial undeveloped oil fields, situated in the Bedout Sub-basin, off the coast of Western Australia.
The Dorado project has been in joint development with Santos (ASX:STO), where Carnarvon holds a ten percent interest. As part of the recent developments, Carnarvon has been conducting technical studies in preparation for a re-entry into the Front-End Engineering and Design (FEED) phase, which is set to begin in Q4 2024. This phase is critical, as it will refine the engineering details necessary to push the project into its development stages.
Dorado is expected to be developed in phases, with the first phase centered on extracting valuable liquid resources through a wellhead platform. This platform will be linked to a Floating Production, Storage, and Offtake (FPSO) vessel, a key component in offshore energy projects, which will allow for efficient resource collection and storage at sea. The phased approach allows Carnarvon and Santos to focus initially on high-yield liquid extraction before shifting to other areas of resource development, optimizing operations for long-term output.
Financially, Carnarvon’s position remains strong, with a cash reserve of approximately A$177 million and no debt. These reserves place the company in a favorable position to support the Dorado project’s development requirements without the immediate need for external financing. Additionally, Carnarvon benefits from a US$90 million free carry provision, which covers a portion of the Dorado development costs, ensuring that the company can focus its financial resources on essential project elements and further exploration opportunities.
Carnarvon’s exploration strategy within the Bedout Sub-basin extends beyond Dorado’s initial phase. The company is exploring gas resources in the region, which could serve future stages of Dorado’s development. These efforts align with Carnarvon’s long-term strategy to leverage the potential of this high-resource area. A further round of exploration drilling is scheduled for 2026, aiming to evaluate additional resources that could contribute to the Dorado project’s expansion and support Australia’s growing energy needs.
The Dorado project’s progress reflects Carnarvon’s commitment to becoming a key player in Australia’s energy sector, supported by strategic partnerships, robust financial planning, and a clear development roadmap.
