ConocoPhillips Confirms Oil Discovery in Norwegian Sea

ConocoPhillips (NYSE:COP) is one of the most undervalued large cap stocks to buy according to analysts. On June 20, ConocoPhillips confirmed an oil discovery at the Slagugle prospect in the Norwegian Sea. This follows the drilling of a second appraisal well, 6507/5-12 S, under production license 891, where ConocoPhillips holds an 80% operating interest and Pandion Energy holds the remaining 20%.

The well is located ~22 kilometers northeast of the Heidrun field and 270 kilometers north of Kristiansund. The Slagugle oil discovery was initially proven in 2020, with preliminary estimates placing resources in the range of 30.8 million to 61.6 million barrels of oil equivalent (mboe) within Triassic reservoir rocks. The recent appraisal well, the third exploration well in this license (awarded in 2016), aimed to delineate the discovery and assess reservoir properties.

Drilled by the Deepsea Yantai rig in 341 meters of water, the well encountered a substantial 188-meter oil-bearing interval within the Åre Formation and Grey Beds, with 75 meters exhibiting very good sandstone reservoir properties. A successful formation test recorded a maximum production rate of 650 standard cubic meters of oil per flow day. Despite a dry well attempt to delineate the discovery in 2022, the latest appraisal has yielded encouraging results.

ConocoPhillips (NYSE:COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas/LNG, and natural gas liquids.

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Disclosure: None. This article is originally published at Insider Monkey.