Australia’s Santos Ltd. said on March 23 its Pavo-1 exploration well has confirmed a significant oil discovery near its Dorado facility, offshore Western Australia.

Santos CEO Kevin Gallagher described the Pavo-1 discovery as a “great result” that could add further material value to the project through a potential low-cost tie-back to the proposed Dorado development plan.

“With the global oil and gas markets seeing increased volatility, low CO₂ oil and gas resources at Dorado and Pavo add significantly to Australia’s national energy security.”

Santos shares rose 0.3% in early trade, with oil and gas explorer Carnarvon Energy, which holds a 30% interest in Pavo-1, jumping as much as 35%.

“Subject to the joint venture making a final investment decision this year, the Dorado production infrastructure is planned to be in place by the end of 2025,” Carnarvon CEO Adrian Cook said, adding that the results bring a significant value to the Dorado development plan.