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ConocoPhillips (COP) Confirms Offshore Norway Gas Discovery

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ConocoPhillips (COP - Free Report) announced the latest discovery of a natural-gas condensate in the Norwegian Sea. The significant discovery was made in the production license 1009 situated 22 miles northwest of the Heidrun oil and gas field, and 150 miles away from the Norwegian coast.

The drilling operation, which was permitted to ConocoPhillips in Aug 2020, was performed by Leiv Eiriksson semi-submersible rig at the Warka discovery well to a total depth of 16,355 feet. ConocoPhillips Skandinavia AS is the main operator of the license, owning a 65% working interest, while PGNiG Upstream Norway AS holds the remaining stake.

The company expects the well to hold about 50-190 million barrels of recoverable oil equivalent (“mmbbl”) on the basis of tentative estimates. The upstream energy giant added that it will further undergo revaluations that will evaluate potential flow rates and the reservoir’s ultimate resource recovery. The appraisal will also help the company to determine plans for the well development.

Following the completion of the Warka well, Leiv Eiriksson drilling rig will proceed with the drilling operation of 6507/5-10 S to explore the Slagugle prospect in production license 891 situated 14 miles north-northeast of the Heidrun Field, with ConocoPhillips as the main operator.

On its part, the potentially largest discovery on the Norwegian Continental shelf strengthens ConocoPhillip’s footprint in the Norwegian Sea. Further, the company expects costs to extract oil and gas from the Warka discovery to be extremely low that will confirm the energy giant’s success in the Norwegian Continental Shelf in the years to come.

Company Profile & Price Performance

Headquartered in Houston, TX, ConocoPhillips is a leading upstream energy company.  However, its shares have underperformed the industry in the past month. The energy company’s stock has gained 8.1% compared with the industry’s 10.6% growth.



Zacks Rank & Stocks to Consider

ConocoPhillips currently carries a Zack Rank #4 (Sell).

Some better-ranked players in the energy space are PDC Energy, Inc. (PDCE - Free Report) , DCP Midstream Partners, LP (DCP - Free Report) , and Enerplus Corporation (ERF - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, the Zacks Consensus Estimate for PDC Energy’s 2020 earnings has been raised 25%.

DCP Midstream is expected to see earnings growth of 183.4% in 2021, while Enerplus Corporation is likely to see earnings growth of 400% next year.

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