Abstract The Ceduna Sub-basin is located within the Bight Basin on the Australian southern margin. Recent structural analysis using newly acquired two-dimensional (2D) and three-dimensional (3D) seismic data demonstrates two Late Cretaceous delta–deepwater fold–thrust belts (DDWFTBs), which are overlain by Cenozoic sediments. The present-day normal fault stress regime identified in the Bight Basin indicates that the maximum horizontal stress ( S Hmax ) is margin parallel; Andersonain faulting theory therefore suggests the delta-top extensional faults are oriented favourably for reactivation. A breached hydrocarbon trap encountered in the Jerboa-1 well demonstrates this fault reactivation. Faults interpreted from 3D seismic data were modelled using the Poly3D © geomechanical code to determine the risk of reactivation. Results indicate delta-top extensional faults that dip 40–70° are at moderate–high risk of reactivation, while variations in the orientation of the fault planes results in an increased risk of reactivation. Two pulses of inversion are identified in the Ceduna Sub-basin and correlate with the onset of rifting and fault reactivation in the Santonian. We propose a ridge-push mechanism for this stress which selectively reactivates extensional faults on the delta-top, forming inversion anticlines that are prospective for hydrocarbon exploration.