Probable Gas Found in All Target Reservoirs at ConocoPhillips' Otway Well
January 7, 2026
ConocoPhillips has identified probable gas across all targeted Waarre sandstone reservoirs at its Charlemont-1 exploration well in Australia’s Otway Basin, resuming drilling after an earlier pressure-related pause before suspending operations again due to higher-than-anticipated formation pressures.
Australia’s 3D Energi - ConcoPhillips’ partner in the VIC/P79 permit where the well is located, along Korea National Oil Corporation - said drilling has resumed at the Charlemont-1 exploration well, confirming probable gas presence in all three target reservoirs after encountering elevated formation pressures.
The company said drilling into the Waarre C sandstone resumed on January 2, 2026, after operations were paused in late December due to higher-than-expected pressures. Elevated gas readings and resistivity logs recorded during the resumed drilling are consistent with hydrocarbon presence in the Waarre C, B and A sandstones, the company said
Charlemont-1 well is located about 55 km offshore Victoria in 110 meters of water. The well was spudded on December 10, 2025, using the Transocean’s Transocean Equinox semi-submersible drilling rig.
Initial gas shows were recorded at 2,552 meters depth, prompting a temporary suspension to install a sevench-inch liner. Drilling was then safely resumed toward the primary target in the Waarre A reservoir.
As of January 7, 2025, drilling had reached 2,753 meters MDKB, about 70 meters short of the planned total depth, when elevated pressures again forced an early halt to drilling. Scenarios for further wireline logging are now being evaluated to assess the extent of hydrocarbon presence.
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“We are incredibly excited by early indications consistent with gas presence in multiple Waarre reservoirs. Wireline logging will be critical in assessing the quality and extent of these indications, and the company remains optimistic as it continues to plan to progress to the evaluation phase. The identification of probable hydrocarbons in the Waarre C is significant, as hydrocarbons were not anticipated in this zone prior to drilling.
“This outcome may have further positive implications for up‑dip prospects along the Charlemont Trend, particularly those not currently supported by existing Direct Hydrocarbon Indicators (DHIs) on seismic.
“We will be evaluating this closely at the conclusion of the drilling program. The presence of gas across stacked Waarre sandstone reservoirs de‑risks the up‑dip prospects with DHIs in the Charlemont Trend, culminating with the La Bella discovery. If successfully appraised, this cluster could be among the largest gas pools in the Otway Basin,” said Noel Newell, Executive Chairman of 3D Energi.
Charlemont-1 is targeting a prospect near the earlier La Bella gas discovery and is part of a broader exploration push in the Otway Basin. The well follows the nearby Essington-1 discovery by ConocoPhillips, which intersected gas in both Waarre C and A reservoirs - the first such find in the basin since 2021.
ConocoPhillips Australia holds a 51% interest and operatorship in VIC/P79, with Korea National Oil Corporation holding 29% and 3D Energi 20%.
