Conoco Announces GOM Discovery

Conoco and Unocal announced a discovery on their K2 exploration well in the Gulf of Mexico on Green Canyon Block 562, about 180 miles south of New Orleans. It is the second consecutive deepwater discovery made this year by the Deepwater Pathfinder drillship. "The sidetracked well has encountered oil in a high-quality reservoir," said Conoco executive vice-president Rob McKee. The well was spudded on May 17 and drilled in 3,900 ft. of water. "We also plan to penetrate some deeper objectives with a different well configuration," McKee said. "We have decided to temporarily suspend the well, which will allow us to plan a safe and cost effective appraisal of the hydrocarbon zone we have encountered, as well as continue to explore the deeper objectives. We are encouraged by the results to date, although the eventual commercial significance is yet to be determined." Conoco and Unocal each hold a 50-percent interest in the Green Canyon 562 block. Pathfinder is expected to return to the location next spring, which is the earliest that the ship's drilling schedule will allow, Conoco said. "This allows Pathfinder to carry out its full workload of commitments," McKee said. "Our goal is to manage our overall deepwater program with a long-term view, and stay on track with our exploration schedule without losing momentum." The Green Canyon prospect is the second well and second discovery drilled by the Conoco and R&B Falcon drillship. The ship's first well was on Garden Banks Block 783. "Pathfinder's performance is exceeding our highest expectations in terms of cycle time and technological capability, and has improved with each well," McKee said. The company also announced the next destination for Pathfinder: Mississippi Canyon Block 1002. In nearly 7,500 ft. of water, the Mississippi Canyon well will be the deepest water prospect drilled by Pathfinder, which was designed to operate in up to 10,000 ft. of water. Conoco has an interest in this prospect as part of a farm-in agreement with Chevron and Texaco. Drilling is expected to begin next week. "Pathfinder is proving to be a strategic asset for Conoco," said McKee. "It is a sought-after tool in the Gulf of Mexico and is bringing Conoco additional exploration opportunities. This enhances the value of the ship to us."