) has made a major oil discovery at its Shenandoah appraisal well
2 in the deepwater Gulf of Mexico (GoM). The latest find could be
considered one of the largest discoveries in the Gulf.
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The well in the Shenandoah Basin encountered more than 1,000 feet
of net oil pay in high-quality Lower Tertiary-aged reservoirs.
Located on Walker Ridge Block 52 in the GoM is the Shenandoah oil
field, the well was drilled to 31,405 feet in about 5,800 feet of
The data collected in the Shenandoah-2 well specifies superior
reservoir quality as well as liquid characteristics that are
identical to those encountered in the 2009 Shenandoah-1 discovery
well. Apart from ConocoPhillips (with a 40% stake),
Anadarko Petroleum Corporation
) has a 30% interest and serves as the operator of the
Shenandoah-2 well, as well as the Shenandoah-1 well about a mile
to the northeast.
Other co-owners are
Cobalt International Energy, L.P.
) with a 20% working interest, and Venari Offshore LLC and
Marathon Oil Company
), each with a 10% working interest.
ConocoPhillips expects Shenandoah 2 to be the most significant
deepwater GoM oil discovery to date. The latest significant
discovery, along with encouraging hydrocarbons indications in the
Coronado well, further strengthens ConocoPhillips' foothold in
the Lower Tertiary Play.
ConocoPhillips is considered one of the biggest leaseholders in
the deepwater GoM region, holding approximately 2 million net
acres. It has boosted its acreage position in the Gulf by twofold
in the last 2 years.
The company intends to drill 5 to 8 wells this year, including
the Ardennes prospect and the Thorn well. Ardennes was spud in
early March, while the Thorn is scheduled for drilling in the
second quarter this year. The Thorn well marks the company's
reentry into the Gulf as an operator. ConocoPhillips remains on
track with major growth projects that are expected to offset
production declines and diversify its portfolio.
Currently, the shares of ConocoPhillips retain a Zacks Rank #3