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.

ConocoPhillips Finds Up to a Billion Gross Barrels in Recent Alaskan Exploration

Source: ConocoPhillips

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.

ConocoPhillips Finds Up to a Billion Gross Barrels in Recent Alaskan Exploration

Source: ConocoPhillips

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.

ConocoPhillips Finds Up to a Billion Gross Barrels in Recent Alaskan Exploration

Source: ConocoPhillips

The Kuparuk field has more than 500 active producing wells and averaged 42MBD for ConocoPhillips in 2017.

ConocoPhillips Finds Up to a Billion Gross Barrels in Recent Alaskan Exploration

Source: ConocoPhillips

Additionally, ConocoPhillips estimates that its 2018 production from legacy assets will be approximately 225 MBOED.


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