ConocoPhillips Finds Gas Offshore Australia

(Credit: ConocoPhillips)

ConocoPhillips Australia has confirmed a natural gas discovery at its Essington-1 exploration well in the Otway Basin, marking the first find in the basin since 2021.

The well, located in permit VIC/P79 about 53 km offshore Port Campbell and 12 km from existing production infrastructure, encountered hydrocarbons in both of its target formations, the Waarre A and Waarre C reservoirs.

Early analysis from logs and wireline data indicates a 62.6-metre gross hydrocarbon column in the primary Waarre A reservoir and a 33.2-metre column in the secondary Waarre C.

The wel was spudded on November 1 by Transocean’s Transocean Equinox semi-submersible drilling rig.

“The Essington-1 well is the first discovery in the Otway since 2021 and is a promising start to ConocoPhillips’ exploration activities in the region. The initial results are encouraging, and we look forward to continuing drilling our second exploration well in December,” said Jan-Arne Johansen, President, ConocoPhillips Australia.

The company said further technical work will assess potential flow rates, the reservoir’s recoverable resources and the commercial viability of a future development. Essington-1 will be plugged and abandoned after operations are completed, in line with its approved environment plan.

“Natural gas is key to providing reliable and affordable energy to households, businesses and industry as Australia seeks to transition to net zero. ConocoPhillips Australia seeks to be part of the solution,” Johansen added.

ConocoPhillips operates the Otway Exploration Drilling Program with a 51% stake, alongside the Korea National Oil Corporation with 29% and 3D Energi with 20%.

Operations at the discovery well are expected to finish by the end of November. A second well in the permit, Charlemont-1, is scheduled to begin drilling in December, subject to weather and operational conditions. Further wells may be considered under the approved environmental plan.

 “The early results from Essington-1 are very encouraging, with clear indications of gas-bearing sandstones in both the primary and secondary targets. While we remain appropriately cautious until formation testing is complete, these results are consistent with the comprehensive pre-drill technical evaluation undertaken by 3D Energi. We look forward to the upcoming Ora program to confirm gas composition and reservoir deliverability,” said Noel Newell, 3D Energi Executive Chairman.