ConocoPhillips Announces Significant Oil Discovery in Deepwater Gulf of Mexico and Provides Program Update
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.
--- # # # ---
About ConocoPhillips
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, 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.
ConocoPhillips
Davy Kong, 281-293-2701 (media)
davy.kong@conocophillips.com
or
Vladimir
R. dela Cruz, 212-207-1996 (investors)
v.r.delacruz@conocophillips.com
