Carnarvon Energy Limited (ASX:CVN) Provides Dorado Project Update
Dorado Project Update
Carnarvon Energy Limited (ASX:CVN) has provided an update on its Dorado Phase 1 liquids development project, located offshore Western Australia. The Joint Venture, which includes Santos Limited as the operator with 80%, alongside Carnarvon Energy Limited and OPIC Australia Pty Ltd each holding 10%, has decided against purchasing a Floating Production Storage and Offloading (FPSO) vessel, impacting the project timeline.
The operator also chose not to begin Front End Engineering and Design (FEED) at this time. Consequently, the target for a Final Investment Decision (FID) previously set for 2025 has been postponed. The Joint Venture is currently reassessing the project timeline and is expected to provide further updates in the future.
Despite these delays, the Joint Venture remains confident in the potential of Dorado and the broader Bedout Basin assets. Plans are underway for drilling additional exploration wells in 2026 to meet tenure commitments. Carnarvon Energy maintains a robust financial standing, with over A$180 million in cash reserves and a US$90 million development cost carry, supported by a low-cost operational structure.
Executive Comments
Carnarvon Energy CEO, Philip Huizenga, expressed disappointment regarding the project’s deferral. He stated, “Given the quality of the Dorado project, we at Carnarvon are disappointed by this latest deferral to the project. Carnarvon is fully supportive of the Joint Venture’s desires to realise value for the asset and will support any initiatives for drilling as soon as possible.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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