ConocoPhillips on Tuesday announced a new oil find offshore Norway that it estimated could generate between 75 million and 200 million recoverable boe.
It marked the second “significant” discovery in the region in as many months, the company said, building upon earlier successes near Norway.
The latest discovery well was drilled in 1,165 feet of water to a total depth of 7,149 feet by the Leiv Eiriksson rig, Houston-based ConocoPhillips said. The find is located on the Slagugle prospect, roughly 14 miles northeast of the Heidrun field in the Norwegian Sea.
The company said it had amassed extensive data and that a future appraisal would determine potential flow rates as well as the reservoir’s ultimate resource recovery and potential development plan.
ConocoPhillips Skandinavia AS is operator of production license 891 on the Slagugle prospect with an 80% working interest. Pandion Energy AS is its license partner with 20% interest.
ConocoPhillips, among the biggest operators on Norway’s continental shelf, in November announced a separate discovery near Norway, about 22 miles northwest of the Heidrun Field. That discovery well was drilled in 1,312 feet of water to a total depth of 16,355 feet. It also was drilled using the Leiv Eiriksson rig.
The company estimated the size of the discovery at between 50 million and 190 million boe.
ConocoPhillips Skandinavia AS is operator of the license with 65% working interest. PGNiG Upstream Norway AS holds the other 35% interest.
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“We have built a strong position on the Norwegian shelf since the discovery of the Ekofisk Field in 1969 and we are a very active industry operator and partner across the North Sea and the Norwegian Sea,” said Matt Fox, the company’s chief operating officer.
ConocoPhillips reported a 3Q2020 loss of $450 million (minus 42 cents/share) compared with year-ago profits of $3.1 billion ($2.74) on revenue of $4.4 billion. Its top line was less than half its year earlier level. After oil prices sunk last spring as coronavirus lockdowns crushed demand, ConocoPhillips cut back output. It curtailed an average of 225,000 boe/d in the second quarter.
Production in 3Q2020 was shy of 1.1 million boe/d, down from more than 1.3 million boe/d a year earlier but up 9% from the second quarter. The company expects to finish 2020 producing about 1.1 million boe/d.
The second-quarter curtailments were reversed beginning in August as economic activity recovered. The company said on its third quarter earnings call that it had a renewed focus on stronger earnings in coming quarters. In addition to continued explorations around the globe, ConocoPhillips said it is focused on domestic growth. The company said in October it planned to acquire Concho Resources Inc. in a $9.7 billion deal it expects will boost overall production levels substantially and generate expense savings in 2021. The deal, slated to close early next year, would form a giant in the Permian Basin that would rival the output of the biggest players in the Lower 48’s most productive oilfield.
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