ConocoPhillips has drilled two wells in Louisiana’s Austin Chalk formation and may be able to judge the potential of the play by the end of the year, S&P Global Platts reports.
While ConocoPhillips likes what it sees, the company needs to complete an initial four-well program before releasing any results and providing more information on the play’s potential, company CEO Ryan Lance said at a press conference following the company’s recent annual shareholder meeting.
S&P Global Platts writes that completions are being run on the first well and ConocoPhillips is starting to flow test it, while the second well is drilled but not completed. A third well is in process of being drilled.
ConocoPhillips took a position in the Austin Chalk early in 2018, saying at the time it had acquired about 211,000 net acres in the play.
The company, which exited deepwater exploration in the Gulf of Mexico, might consider a return to that arena if all-in costs drop below current levels, Lance said, but so far it is not competitive with ConocoPhillips‘ current portfolio.