• Robust balance sheet with A$186 million cash, no debt, and US$90 million Dorado development free carry
• Capital management initiatives including on-market buyback and potential A$125 million capital return
• Delays in Dorado project development, exploring alternative options to accelerate the project

Carnarvon Energy Limited (ASX:CVN) has provided an update on its activities and financial position for the quarter ended 31 March 2025. The company maintained a robust balance sheet with A$186 million in cash, no debt, and a US$90 million Dorado development free carry. During the quarter, Carnarvon commenced capital management initiatives, including an on-market buyback of up to 10% of its issued capital and a potential return of up to A$125 million to shareholders, subject to a class ruling from the Australian Taxation Office. The company also announced delays in the Dorado project development, with the operator deciding not to proceed with the acquisition of an identified FPSO vessel and deferring the commencement of Front-End Engineering and Design (FEED) studies. Carnarvon is working with its joint venture partners to update the timeline for the Dorado development and is investigating alternative options to accelerate the project. Despite the delays, the company recognizes the immense value in the discovered resources at Dorado, Pavo, and Roc, as well as the exploration prospectivity in the Bedout Sub-basin. Carnarvon is looking forward to returning to exploration drilling, with at least one well planned for 2026 in the Bedout Sub-basin. The company remains well-funded for its near-term plans, including the exploration of up to three wells in the Bedout Sub-basin and taking the Dorado project into a final investment decision.

Carnarvon is exploring alternative options to accelerate the Dorado project development, which has been delayed. The company plans to drill at least one exploration well in the Bedout Sub-basin in 2026, subject to regulatory approvals and rig availability.