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COP's Essington-1 Well Confirms Gas Presence Offshore Australia
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Key Takeaways
COP's Essington-1 well found gas columns across two target zones off Victoria's coast.
Drilling began Nov. 1 and will continue before COP moves to a second well in December.
The six-well campaign aims to confirm a major gas resource for Australia's east coast supply.
ConocoPhillips (COP - Free Report) , a leading upstream energy company, has reported that its exploration efforts offshore southeastern Australia have yielded encouraging results, as the company encountered natural gas in the region. Per Reuters, initial exploratory drilling operations commenced on Nov. 1, 2025, and the company will continue working on the first exploration well for another two weeks. Following this, COP plans to move forward with a second exploration well aimed at validating the presence of large, commercially viable gas reserves.
COP has stated that operations at the first exploration well, Essington-1, are ongoing, and the well will be plugged and abandoned once operations are complete. The company will then move on to the second well in the exploration campaign. The exploratory campaign consists of six wells across two exploration permits. Furthermore, it has the option to drill four more wells.
The wireline logs from the first exploration well demonstrated the presence of gas columns across two target zones off the Victoria state coastline. A company spokesperson mentioned that the drilling of the second exploration well is scheduled for December.
The partners in the Otway Basin permit include ConocoPhillips, Australia's 3D Energi and the Korea National Oil Company. The company first joined hands with 3D Energi in 2019. Around this time, ConocoPhillips was also trying to exit its stake in the Darwin LNG project and the offshore fields related to this project. The partners in the Otway Basin permit intend to discover a large, commercially viable gas resource that could become a new source of domestic supply for Australia’s east coast. This discovery holds significant importance, as the country’s east coast is anticipated to witness major gas shortages toward the end of this decade.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
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COP's Essington-1 Well Confirms Gas Presence Offshore Australia
Key Takeaways
ConocoPhillips (COP - Free Report) , a leading upstream energy company, has reported that its exploration efforts offshore southeastern Australia have yielded encouraging results, as the company encountered natural gas in the region. Per Reuters, initial exploratory drilling operations commenced on Nov. 1, 2025, and the company will continue working on the first exploration well for another two weeks. Following this, COP plans to move forward with a second exploration well aimed at validating the presence of large, commercially viable gas reserves.
COP has stated that operations at the first exploration well, Essington-1, are ongoing, and the well will be plugged and abandoned once operations are complete. The company will then move on to the second well in the exploration campaign. The exploratory campaign consists of six wells across two exploration permits. Furthermore, it has the option to drill four more wells.
The wireline logs from the first exploration well demonstrated the presence of gas columns across two target zones off the Victoria state coastline. A company spokesperson mentioned that the drilling of the second exploration well is scheduled for December.
The partners in the Otway Basin permit include ConocoPhillips, Australia's 3D Energi and the Korea National Oil Company. The company first joined hands with 3D Energi in 2019. Around this time, ConocoPhillips was also trying to exit its stake in the Darwin LNG project and the offshore fields related to this project. The partners in the Otway Basin permit intend to discover a large, commercially viable gas resource that could become a new source of domestic supply for Australia’s east coast. This discovery holds significant importance, as the country’s east coast is anticipated to witness major gas shortages toward the end of this decade.
COP’s Zacks Rank and Key Picks
COP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Oceaneering International (OII - Free Report) , Canadian Natural Resources Ltd. (CNQ - Free Report) and FuelCell Energy (FCEL - Free Report) . While Oceaneering and Canadian Natural Resources currently sport a Zacks Rank #1 (Strong Buy) each, FuelCell carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.