Conoco Updates Report on Poseidon North-1 - Analyst Blog


ConocoPhillips ( COP ), operator of the WA -315-P Browse Basin permit, along with its partner Australia's oil and gas exploration company, Karoon Gas Australia Ltd. announced the Progress Report of Poseidon North - 1.

The Australian company reported that a 9.625 inch casing was run and cemented at 12,533 foot (3,820 meter) RT (Rotary Table) at Poseidon North - 1 well in permit WA-315-P offshore Western Australia.

Thereafter, a 8.5 inch hole was drilled to reach the final well's total depth of 17,349 feet (5,288 meters) RT followed by a wireline logging program.

Karoon Gas inferred that the Poseidon North - 1 well overlapped gas bearing sands of Jurassic age across a 65.6 foot (20 meter) gross, 39.3 foot (12 meter) net reservoir interval. This interpretation, which was based on cuttings, mud gas and wireline log data, is uncertain. A sample analysis is yet to be carried out to establish the existence of mobile gas. With no further evaluation planned, the well will now be plugged and abandoned.

On completion of Poseidon North - 1, the joint venture has decided to drill the sixth and final well, Pharos - 1 in permit WA-398-P, as part of Browse Basin Phase 2 exploration drilling campaign.

Located about 5.59 miles (9 kilometers) north east of Proteus -1, Pharos -1, will be a further test of the Proteus-Crown trend.

Pharos, a low risk exploration well with the potential to augment considerable resource for any future Poseidon development, intends to target an extension of the discovery made at Proteus - 1, which proved excellent reservoir quality and condensate bearing gas in the Montara formation.

ConocoPhillips plans to use the Transocean Legend (mid-water semisubmersible) for the final well.

At present, ConocoPhillips carries a Zacks Rank #3 (Hold). Some better-ranked oil and gas stocks worth considering include Encana Corp ( ECA ), CVR Refining, LP ( CVRR ) and Matrix Service Company ( MTRX ). All of these sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: COP , CVRR , ECA , MTRX

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