We’ve had an extraordinary month at Carnarvon Energy, topped by announcing our drilling campaign at the Pavo-1 well, which confirmed a significant oil discovery – the second only to our Dorado discovery in the last five years.

The discovery is significant on a number of fronts, none more so than proving up the Bedout sub-basin’s working petroleum system, which has been subject to a large proportion of the Company’s exploration activity over the past 10 years. It joins a growing portfolio of world class shallow water assets in the sub-basin, which will undergo further exploration to the north and east in the future.

Pavo’s proximity to Dorado adds weight to the highly economic option to tie-back the discovery to the planned production facilities and extend their lifespan. Estimates the discovery could hold up to 43 million barrels of quality, light oil with the likelihood of high flow rates and good porosity has meaningful impact on our nation’s ongoing energy security as the transition continues. And with a similarly attractive prospect nearby at the Apus-1 location, the team is buoyed on the next chapter of activity in the Bedout.

Last week the Company launched a fully underwritten institutional placement to raise $70 million to provide additional funding for the company’s core activities. The proceeds will go towards the equity component of Phase 1 (liquids) of the Dorado development, Front End Engineering Design (FEED) work for Dorado, drilling of the high impact Apus-1 exploration well and further appraisal of the Pavo-1 discovery along with studies to identify the next high impact drilling targets of the Bedout sub-basin.

Earlier last month Carnarvon was pleased to unveil our joint venture renewable diesel partnership with Frontier Impact Group as FutureEnergy Australia (FEA). The name reflects our commitment to and investment in the energy transition, with the potential to transform the approach to fuel production and use. We have identified the Shire of Narrogin as the focus area for our first modular biorefinery, with an option to purchase a 65ha site just south of the Wheatbelt town.

Consultation with key stakeholders is ongoing and in May FEA representatives will be in Narrogin to hold a community information session.