COP holds 100% working interest
After adding more to its Alaskan portfolio, ConocoPhillips (NYSE:COP) has stated that its total of gross discovered resource has been estimated at 0.5-1.1 BBOE, with 100% working interest and 75% of the play yet to be drilled.
Looking at the Greater Willow Area the company now estimates its 2016-2018 exploration and appraisal campaign has discovered 400-750 MMBOE of gross resource, which leads the company to believe that this resource estimate is sufficient to justify developing the area with a stand-alone hub.
Preliminarily, the company estimates first oil can be achieved by 2024-2025 with a price tage of two to three billion spent over the course of four to five years.
Once first oil is achieved the company will then spend an additional $2 billion to $3 billion of drilling capital over a number of years to maintain production.
The company has also been able to capture net resource of two billion barrels of oil equivalent of less than $40 per barrel cost of supply resource in legacy assets.
ConocoPhillips’ legacy asset base consists of a non-operated interest in the Prudhoe Bay Field, an operated interest in the Kuparuk Field and an operated interest in the Alpine Field/Western North Slope assets that encompasses approximately 1.2 million acres.
The Kuparuk field has more than 500 active producing wells and averaged 42MBD for ConocoPhillips in 2017.
Additionally, ConocoPhillips estimates that its 2018 production from legacy assets will be approximately 225 MBOED.