Ann: Annual General Meeting Presentation 2019, page-43

Here are my notes the AGM from yesterday

Governance

· Respondingto a query from the New Zealand Shareholders’ Association representative, althoughthe company has a diversity policy the Board has no current intention of appointinga female or indigenous person as a sixth director (Chairman).

Dorado

· Liquidsdevelopment currently preferred over a full field development, as both easierand quicker (90 metre water depth simplifies much of the liquids development).

· Goingforward, even though the company has a minority 20% interest compared to thecurrent 80% held by Santos, some Carnarvon staff have been freed up to closelymonitor and review Santos’ FEED/FID process – a smaller team like Carnarvon’scan be less bureaucratic and may spot something that the bigger Santos team mayhave missed.

· FEED/FIDto take up almost all of 2020.

· Thereis always some possibility that FEED/FID may be delayed, because Santos firstwant to explore their new exploration acreage with BP. Nevertheless in reality from all Santos’ public announcements to date, a timely Dorado development is “core” to their strategy.

· TheJoint Operating Agreement requires unanimous agreement of the parties for keydecisions. Refer to the capital raising documentation for highlights of pre-emptive rights each party may have.

· Aimingfor first production in 2024/2025.

· 0%sulphur product should be priced attractively, in light of the new IMO 2020 marinefuel regulations.

Exploration

· Fourcentral permits (WA-435-P to WA-438-P) cover the “lion’s share of the basinproper”.

· Boardare comfortable with this exposure – no need to be involved in the new Santos/BPpermit to the west or the 3D Oil permit to the east.

· TheKeraudren 3D seismic program was cut short, so the company is looking in thenext seismic program to extend coverage northeast from the Roc-Pavo dotted line.

· Carnarvonhas explained to Santos that they wish to properly evaluate the Keraudren 3Dfirst, especially to work out why Roc South failed, before proceeding withdrilling Apus and Pavo.

· Henceno drilling of Apus or Pavo planned for 2020 (and no timeline).

· WA-523-Pnext to Buffalo, and in a known producing oil and gas basin, also has some interestingprospects.

Share Price and Funding Requirements

· Companyis aware there is one institutional short-seller (cost of borrow around 7%).

· Howeverthere is no drilling planned for the next year, nor a guarantee of a successfulBuffalo farm-out [to boost the share price].

· Companyalso isn’t considering any share buy-back to boost the share price either,because “capital is precious”.

· Carnarvonis fully funded to the end of 2020 (and a bit beyond), so no need for anyimmediate capital raising.

· Hence,management embarking on an Eastern States investor roadshow to persuadeinstitutional investors to buy shares on market.

· Mayinvestigate selling down a small portion of Dorado to fund development – thiswould also put a price on Dorado to enable investors to value Carnarvon shares.

· Allfour banks appear very keen to lend to a customer like Carnarvon, as there are veryfew, if any, large oil and condensate projects/customers in shallow water OECDcountries that require bank financing.

Other Matters – Climate Change

· Boththe Chairman and MD responded generically to questions raised about the impactof climate change policies.