2023 Annual Report

Chairman’s and managing director’s review

William (Bill) FosterChairman

While global market turbulence and uncertainty has proven a challenge to negotiate over the course of the last twelve months, I believe there has been merit in being prudent during this time to ensure the Company remains on a strong footing to progress its world class assets.

To that end, your Company is in good standing, with considerable funds available for investment in a quality development asset in Dorado and unrivalled exploration opportunities in the Bedout Sub-basin, offshore Western Australia.

Adrian CookManaging Director

Carnarvon’s core asset base, and business focus, lies in the Bedout Subbasin offshore Western Australia that includes the world class Dorado and Pavo discoveries.

The Dorado oil and gas discovery, of which Carnarvon holds a 10% equity interest following the post year-end divestment to CPC, was made in 2018 and at 162 MMbbl recoverable (Pmean, gross) (see page 15), is one of the largest oilfields discovered in the Northwest Shelf.

Two successful appraisal wells in 2019 allowed for the commencement of Front-End Engineering and Design (FEED) for development of the Dorado field, with the Joint Venture subsequently securing the key regulatory approvals needed for development in the form of a Production Licence and Offshore Project Proposal.

The company’s highlights during the 2023 financial year

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Binding agreement signed to divest a 10% interest in the Company’s Bedout assets to OPIC Australia Pty Limited, a wholly owned subsidiary of CPC Corporation, Taiwan (CPC), Taiwan’s national oil and gas company to significantly de risk the Company’s financing of the Dorado development. Divestment completed post year-end in August 2023.
Acceptance of the Dorado Offshore Project Proposal (OPP), a key regulatory approval towards the sanction of the Dorado development.

Pavo integration studies matured further, underpinning its low-cost compatibility with the Dorado facilities.
Interpretation of recently acquired 3D seismic data has substantially high-graded the Bedout exploration portfolio with over 100 prospects identified and the top 20 identified prospects hosting 1.5Bboe (Pmean gross) (see page 17).

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Dorado & Pavo Project
Pepper Project

Our projects

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Dorado & Pavo Project

Carnarvon secured its interests in the Bedout Sub-Basin permits (WA-435-P, WA-436-P, WA-437-P and WA-438-P) in 2009. The offshore permits cover an expansive area of 21,652km2 which is located approximately 110km from the coast, offshore of Port Hedland in Western Australia.

Pepper Project (EP509 & TP29) (Carnarvon 100% and operator)

EP509 and TP29 (Pepper Project) are located in the Barrow Sub-basin of the Northern Carnarvon Basin, within State waters. Both permits sit within shallow water depths (less than 50 meters) and lie adjacent to each other, immediately south-west of Barrow Island, offshore Western Australia.

Financial review

The Group reports an after-tax loss of $4,096,000 for the ﬁnancial year ending 30 June 2023 (2022: $53,753,000).

Carnarvon’s balance sheet remains strong with cash and cash equivalents of $95,301,000 (2022: $112,424,000), with no debt and minimal commitments going forward.

During the year, the Company invested $12,119,000 on exploration and evaluation assets. These costs were primarily related to the Dorado FEED activities, the Pavo-1 and Apus-1 exploration well costs and interpretation of the 3D seismic acquisition over the Dorado and surrounding exploration areas.