ConocoPhillips Announces Significant Oil Discovery in Deepwater Gulf of
Mexico and Provides Program Update
HOUSTON -- March 19, 2013
ConocoPhillips (NYSE: 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 (NYSE: APC), 30 percent working interest and operator; Cobalt
International Energy, L.P. (NYSE: CIE), 20 percent; Marathon Oil Company
(NYSE: 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 (NYSE:
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.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements. Forward-looking
statements relate to future events and anticipated results of operations,
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Davy Kong, 281-293-2701 (media)
Vladimir R. dela Cruz, 212-207-1996 (investors)
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