Carnarvon Energy Limited provided an update on exploration prospectivity and potential near-term drilling opportunities across the company's acreage in the Bedout Sub- basin. More than 100 prospects have been identified across Carnarvon's acreage (WA-435-P, WA-436-P, WA-437-P and WA-438-P (collectively "Bedout Permits")), covering a broad range of play styles. The top five prospects in each permit have been re-assessed following the successful Pavo discovery this year, with potential for high grading to drilling status.

These top prospects contain both gas and liquids focused targets. The mean prospective resources of the top 20 prospects add up to over 1.5 billion barrels of oil equivalent (Pmean, gross). This, and the high average probability of geological success, underscores the potential for more discoveries in the highly prospective Bedout Sub-basin.

Potential near-term drilling candidates: Carnarvon has equity of between 20% and 30% across the Bedout Permits, with operator Santos Limited holding the remaining equity. The joint venture is now high-grading the following prospects for potential inclusion in near-term drilling campaigns: Pavo: Further drilling into the Pavo structure in WA-438-P will help both appraise the southern culmination adjacent to the highly successful Pavo discovery and confirm deliverability of the valuable, high-quality fluids. Proving up the low-risk (Pg 60%) Pavo South accumulation will add 66 million barrels (Pmean, gross) to the already proven 43 million barrels (P50, gross) at Pavo North, which if successful would prove volumes roughly two thirds as big as Dorado.

Further success at Pavo South would also enhance nearby prospectivity, such as at Torin, a 58-million-barrel (Pmean, gross) closure located around 15 km southeast of Pavo; Ara: An almost 600 bcf prospective gas field with 100 million barrels of associated condensate (Pmean, gross) has benefited from a review of the reprocessed Zeester 3D. Not only is Ara a `game-changer' in terms of the size of the prospect itself, at 200 million barrels of oil equivalent, but exploration success in this northern area will de-risk numerous additional gas prospects in the vicinity such as Wendolene (335 bcf, Pmean, gross) and Yuma (434 bcf, Pmean, gross), which are similar in nature. Unlocking the gas play in this area has the potential to aggregate several tcf of gas and provide further confidence for the Stage 2 gas development at Dorado; and Starbuck: The Starbuck (76 mmboe, Pmean, gross) and Flint (56 mmboe, Pmean, gross) prospects in WA-436-P are examples of already medium risk prospects (32% and 30% respectively) that will be high-graded through analysis of the Keraudren 3D and its areal extensions, acquired in 2019-2022.

Success at either of these wells, on-trend with the recent Pavo-1 discovery, would unlock further prospectivity, such as Arthur (73 mmboe, Pmean, gross). The joint venture continues to high-grade the prospect portfolio in the Bedout Permits. Potential future drilling campaigns are subject to ongoing joint venture and government approvals.

Bedout Sub-basin exploration history: The March 2022 Pavo-1 discovery marked another exciting period of exploration in the Bedout Sub-Basin, following a string of successful wells between 2014 and 2018 including the Phoenix South, Roc and Dorado discoveries. Carnarvon recognised the promise shown by BP's Phoenix-1 discovery in 1980 (which discovered around 10 million boe of gas in the Barret and Hove member sandstones) and the potential for 3D seismic to improve imaging and acquired the Bedout Permits in 2009. The first 3D seismic acquired in 2012 showed dramatic data quality improvement.

Four out of the six exploration wells drilled in the 3D-era of the past decade have encountered oil and/or gas condensate. This success rate of 67% from 3D-era exploration wells is world-leading. In early 2022 Pavo-1 encountered a 60m gross oil column, with 46m of net oil pay.

The reservoirs have high porosities, ~19%, and permeabilities in the range of 100 to 1,000 millidarcies (mD). Initial analysis indicates light sweet oil with about 52 degrees API and a low gas-oil ratio. The 2C (unrisked best estimate contingent) resources are about 43 million barrels of oil.