ConocoPhillips confirmed that its Essington‑1 exploration well, spudded on November 1, 2025, has logged substantial gas‑bearing intervals in the Waarre A and Waarre C sandstone reservoirs offshore Victoria. The 8‑inch well reached a measured depth of 2,735 m and recorded 62.6 m of gas‑bearing interval in Waarre A and 33.2 m in Waarre C, with wireline logs indicating moveable gas at pressures consistent with commercial production potential.
The discovery is part of a joint venture that includes ConocoPhillips (51 %), 3D Energi (20 %), and Korea National Oil Corporation (29 %). Prior to drilling, the consortium estimated a mean prospective resource of 262 billion cubic feet (Bcf) for Essington‑1, and a combined 355 Bcf for the two initial wells in the Otway Basin. The company plans a multi‑well program that could expand to six wells across two permits, with options for additional wells pending further appraisal.
Strategically, the find represents the first new gas discovery in the Otway Basin since 2019 and positions ConocoPhillips to supply Australia’s tightening east‑coast gas market. Low‑cost, high‑quality assets such as this are central to the company’s strategy of expanding its gas portfolio while maintaining disciplined capital allocation. The discovery also complements ConocoPhillips’ stake in the Australia Pacific LNG facility, potentially enhancing domestic supply and supporting export commitments.
Jan‑Arne Johansen, President of ConocoPhillips Australia, emphasized that natural gas is a key component of Australia’s energy transition and that the company is committed to delivering new supply. He noted that the Essington‑1 discovery “provides a new source of revenue and strengthens our production mix,” underscoring the company’s focus on operational excellence and cost control in a market with rising demand and limited supply.
Analysts have maintained a moderate‑buy consensus on ConocoPhillips, citing the company’s strong operational performance and the strategic value of the Otway Basin discovery. The find is expected to contribute to future cash flow and support the company’s long‑term growth trajectory.
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