** Shares of Carnarvon Energy CVN.AX fall 2% to A$0.1225

** Brokerage Maquarie cuts target price for stock to A$0.22 from A$0.29

** Energy major Santos STO.AX, which owns 80% of the Dorado project in which Carnarvon holds a 10% share, stalled plans on the Western Australian oil and gas project worth over A$3 bln ($1.87 bln) earlier this month

** We believe significant value exists in CVN's Bedout basin position, most significantly in Dorado/Pavo liquids - Macquarie

** Brokerage says further dilution could arise if Dorado capex costs rise significantly

** Stock down 18.3% this month, including the day's moves

($1 = 1.6049 Australian dollars)

(Reporting by Shivangi Lahiri in Bengaluru)

((shivangi.lahiri@thomsonreuters.com;))