The announcement that ConocoPhillips (NYSE:COP) has discovered as much as 300 million barrels of oil off the coast of Alaska, one which could generate as much as 100,000 barrels per day when it’s fully operational, further solidifies the future reserves of the company. Combined with Conoco meeting its lower-cost objectives, it positions the company for a solid performance in the near and long term.
This follows up on the company’s discovery of the oil early in 2016 after drilling a couple of exploration wells. Conoco kept its discovery quiet, waiting until the December state and federal lease sales when it added another 594,900 acres in leases, which are located on the western North Slope of Alaska. Obviously, this means it believes there is a lot more oil to be found.
With its partner in the venture, Anadarko Petroleum Corp. (NYSE:APC), the company will engage in further exploration in the region. ConocoPhillips owns 78 percent of the venture and Anadarko the remaining 22 percent.