ConocoPhillips has confirmed a natural gas discovery at the Essington-1 well, located in permit VIC/P79 near existing production infrastructure offshore Port Campbell, in south-eastern Australia. This operation marks the first hydrocarbon find in the Otway Basin in four years, offering a new investment opportunity for the companies involved in the project. Hydrocarbons were encountered in both targeted formations, the Waarre A and Waarre C reservoirs, based on initial data.
Log and wireline measurements indicate a 62.6-metre gross hydrocarbon column in the primary Waarre A reservoir and a 33.2-metre column in the secondary Waarre C reservoir. The well was drilled using the Transocean Equinox semi-submersible rig, operated by Transocean, after operations commenced earlier this month.
A positive signal for project partners
ConocoPhillips holds a 51% stake in the drilling programme, alongside Korea National Oil Corporation with 29% and 3D Energi with 20%. The three entities are monitoring the project’s progress with a view to evaluating the commercial potential of the reservoir. Once operations are completed, Essington-1 will be plugged and abandoned in line with the approved environmental plan, consistent with the practices outlined in the exploration programme.
Next steps include additional technical work to determine potential flow rates, recoverable volumes, and the financial viability of a future development. These results will be critical in guiding the investment decisions of the partners, who are already planning to continue the campaign with the drilling of the second well, Charlemont-1, scheduled for December.
A campaign likely to attract new capital
Current operations are expected to conclude by the end of the month, while formation testing will provide more detailed information on gas composition and reservoir performance. Initial results confirm the presence of gas-bearing sandstones in both targets, consistent with the geological evaluation previously carried out by 3D Energi. Investors are closely watching the progress of the programme, which could broaden opportunities in the Otway Basin if confirmed.
Partners are also relying on the upcoming Ora programme to deliver key data on reservoir deliverability, a critical factor in determining the financial valuation of offshore gas projects.
