COP Flows Gas from Boreas-1 Well

US supermajor ConocoPhillips (COP - Analyst Report) announced the commissioning of Boreas-1 exploration well on Block WA-314-P in Western Australia’s offshore Browse basin.

The gas flow rate of the well was at a uniform rate of 30.2 million cubic feet per day on a 0.62 inch choke in the course of the initial well cleaning, according to ConocoPhillips and its partner Karoon Gas Australia. The current surface equipment constrained the flow rate of the well.

Per the ongoing testing program, the flow rate currently stands in the range of 4,904 to 4,974 meters in a punctured interval of 70 meter, in the primary Plover formation reservoir.

Following the completion of the production test – extending for about five days –the entire well data along with the data acquired from Poseidon-1, Poseidon-2 and Kronos-1 discoveries and the 3D seismic data, will be integrated to identify the volume and constitution of the Greater Poseidon.

The semi-submersible rig Transocean Legend is drilling the three blocks - WA-314-P, WA-315-P and WA-398-P – in the Boreas-1, which represents the first of a planned five well drive in the Greater Poseidon executed by ConocoPhillips and Karoon.

After the completion of testing at Boreas-1, both the companies will shift its focus to the Zephyros-1 exploration well, in permit WA-398-P – located around eight kilometers south-west of the Kronos-1 discovery.

Located about 14 kilometers south-east of Poseidon-1 - Proteus-1 - in WA-398-P, will be the third target of the companies. The other two well locations will be disclosed only after the receipt of joint venture consent.

ConocoPhillips retains the operatorship of the Greater Poseidon campaign with an interest of 60% in WA-315-P and WA-398-P, while Karoon has a stake of 40%. In block WA-314-P – Karoon and ConocoPhillips hold 90% and 10%, respectively.

ConocoPhillips recently acquired a stake in US energy firm Hess Corporation’s (HES - Analyst Report) Azeri, Chirag and Guneshli (AGC) group of oil fields in Azerbaijan. Longer term, we maintain our Underperform recommendation.