ConocoPhillips Announces Significant Oil Discovery in Deepwater Gulf of Mexico and Provides Program Update
HOUSTON--(BUSINESS WIRE)-- ConocoPhillips (NYS: COP) today announced a significant oil discovery from its recently drilled Shenandoah appraisal in the deepwater Gulf of Mexico. The WR51-2 Shenandoah appraisal well encountered more than 1,000 feet of net pay in high-quality Lower Tertiary-aged reservoirs.
"The potential of the Shenandoah discovery, combined with very positive indicators of hydrocarbons in the nearby Coronado well, further strengthens our position in the Lower Tertiary Play," said Larry Archibald, senior vice president, Exploration. "We believe this discovery could be material and, together with the doubling of our deepwater Gulf of Mexico acreage position in the last two years, reinforces our global exploration strategy of getting into the right plays early in their life-cycle. Today's announcement is an important first step in demonstrating our ability to grow a high-value Gulf of Mexico portfolio through organic exploration."
The Shenandoah appraisal well, located in Walker Ridge Block 51, was drilled to a total depth of 31,405 feet in approximately 5,800 feet of water. The well was about one mile southwest and approximately 1,700 feet structurally down-dip from the 2009 Shenandoah-1 discovery well. Log and pressure data collected in the Shenandoah-2 well indicate high-quality reservoir and fluid properties similar to those encountered in the discovery well. Logs indicate that the targeted Lower Tertiary sands were full to base with hydrocarbons and there was no evidence of an oil-water contact. ConocoPhillips holds a 30 percent working interest in Shenandoah. Other co-owners are Anadarko Petroleum Corporation (NYS: APC) , 30 percent working interest and operator; Cobalt International Energy, L.P. (NYS: CIE) , 20 percent; Marathon Oil Company (NYS: MRO) , 10 percent; and Venari Offshore LLC, 10 percent.
The Coronado wildcat exploration well, located in Walker Ridge Block 98, was drilled to a total depth of 31,866 feet, in 6,127 feet of water. The well is located approximately 190 miles off the coast of Louisiana and approximately 12 miles southeast of the Shenandoah discovery. Results from the Coronado well are still being evaluated, and additional appraisal will be needed to determine the full extent of the resource. ConocoPhillips holds a 35 percent working interest in Coronado. Other co-owners are Chevron Corporation (NYS: CVX) , 40 percent working interest and operator; Anadarko Petroleum Corporation, 15 percent; and Venari Offshore LLC, 10 percent.
ConocoPhillips is one of the largest leaseholders in the deepwater Gulf of Mexico with approximately two million net acres. In 2013, the company plans to drill between five and eight wells, including the Ardennes prospect, which spud in early March 2013, and the Thorn well, scheduled to spud in the second quarter of 2013. The Thorn well represents the company's reentry into the deepwater Gulf of Mexico as an operator.
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ConocoPhillips is the world's largest independent E&P company based on production and proved reserves. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 30 countries, $58 billion in annual revenue, $117 billion of total assets and approximately 16,900 employees as of Dec. 31, 2012. Production from continuing operations averaged 1,527 MBOED in 2012, and proved reserves were 8.6 billion BOE as of Dec. 31, 2012. For more information, go to www.conocophillips.com.
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This news release contains forward-looking statements. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. The actual results of operations can and will be affected by a variety of risks and other matters including, but not limited to, changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; difficulties in developing new products and manufacturing processes; unexpected cost increases; international monetary conditions; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and general domestic and international economic and political conditions; as well as changes in tax, environmental and other laws applicable to our business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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