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ConocoPhillips Announces Willow Discovery in National Petroleum Reserve

Could produce up to 100,000 BOPD


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ANCHORAGE, Alaska –ConocoPhillips Alaska Inc. today announced a new oil discovery in the Greater Mooses Tooth (GMT) Unit located in the northeast portion of the National Petroleum Reserve –Alaska (NPRA). The Willow discovery wells, Tiŋmiaq 2 and 6, were drilled in early 2016 and encountered 72 feet and 42 feet of net pay, respectively, in the Brookian Nanushuk formation. ConocoPhillips has a 78 percent working interest in the discovery and Anadarko Petroleum Corporation holds a 22 percent interest.

 

The two discovery wells are located about 28 miles west of the Alpine Central Facility,and are located approximately four miles apart. The Tiŋmiaq 2 well was tested and established good reservoir deliverability with a sustained 12-hour test rate of 3,200 barrels of oil per day of 44-degree API oil. Initial technical estimates indicate the discovery could have recoverable resource potential in excess of 300 million barrels of oil. Appraisal of the discovery will commence in January 2017 with the acquisition of state-of-the-art 3D seismic. Subject to appraisal results and the choice of development scenario, Willow could produce up to 100,000 barrels of oil per day (BOPD). Assuming timely permit approvals and competitive project economics, initial commercial production could occur as early as 2023.

 

“This discovery is tremendously exciting not only for ConocoPhillips, but also for the state of Alaska,” said Joe Marushack, president of ConocoPhillips Alaska. “Willow’s proximity to existing infrastructure improves the economic viability of the discovery. Development of Willow, a potential multi-billion-dollar investment, could provide thousands of jobs during construction and could generate substantial revenue for the federal government, state, North Slope Borough, and communities in the NPRA.”

 

In a follow-up to the Willow discovery, ConocoPhillips and its bidding partner, Anadarko, were successful in December’s federal lease sale on the western North Slope, winning 65 tracts for a total of 594,972 gross acres. ConocoPhillips independently was successful in December’s state lease sale on the western North Slope, winning 74 tracts for a total of 142,280 gross acres.

 

“The Willow discovery adds to our history of exploration success in the NPRA and is consistent with our focused global exploration strategy,” commented Richard Lunam, president of Exploration, Business Development and Other International for ConocoPhillips. “The acreage acquired in the recent state and federal lease sales gives us running room to test the concepts that led to Willow and other NPRA discoveries.”

 

Besides exploration activities, ConocoPhillips continues to make substantial investments in new projects on the North Slope. In 2016, the company approved additional drilling at CD5, contracted with Doyon Drilling for a new-build extended reach drilling rig, and commissioned two new rigs for the Kuparuk River Unit. This winter, construction will begin at GMT1, a drill site eight miles west of CD5. The cost to develop GMT1 is approximately $900 million gross with peak production estimated at 30,000 BOPD gross. First oil is planned for late 2018. In addition, permits have been filed for GMT2, located about eight miles west of GMT1. GMT2 is estimated to cost more than $1 billion gross with peak production estimated at 25,000 to 30,000 BOPD gross. A seismic survey over GMT2and Willow is also planned in the first quarter of 2017. First oil for GMT2 is dependent upon the time to acquire federal permits, but is anticipated to be 2020 or 2021.

 

The GMT Unit is operated by ConocoPhillips Alaska, Inc. (78 percent interest). Anadarko Petroleum Company (NYSE: APC) holds a 22 percent interest.

 

About ConocoPhillips Alaska
ConocoPhillips has been leading the search for energy in Alaska for more than 50 years. We are committed to responsibly developing Alaska’s resources, providing economic opportunity for Alaska, operating at the highest safety standards and being good stewards of our community. For more information, visit www.conocophillipsalaska.com.

Follow us on Facebook (https://www.facebook.com/conocophillips) and Twitter (@COP_Alaska) for North Slope project updates and activities.

 

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. The actual results of operations can and will be affected by a variety of risks and other matters including, but not limited to, changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; difficulties in developing new products and manufacturing processes; unexpected cost increases; international monetary conditions; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and general domestic and international economic and political conditions; as well as changes in tax, environmental and other laws applicable to our business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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