Core Insights - ConocoPhillips has encountered probable gas in all three targeted Waarre reservoirs while drilling the Charlemont-1 exploration well in the Otway Basin, offshore Victoria [2][3][8] - The drilling operations faced temporary suspensions due to high-pressure conditions, but resumed in early January with encouraging results indicating elevated gas readings [3][4][5] Drilling Operations - The Charlemont-1 well was drilled to a measured depth of 2,753 meters below the kelly bushing by January 7, 2026, where unexpectedly high-pressure conditions were encountered [4] - A seven-inch liner was installed to maintain well control during drilling operations, which were paused earlier than planned due to safety concerns [4][8] Gas Presence and Evaluation - Initial results from the Charlemont-1 well have shown gas presence across multiple Waarre reservoirs, with unexpected findings in the Waarre C formation [5][6] - The operator is currently analyzing different wireline logging scenarios to assess reservoir properties and hydrocarbon presence in the Waarre sandstone reservoirs [4][8] Company Stake and Partnerships - ConocoPhillips holds a 51% stake in the VIC/P79 permit, while partners 3D Energi and Korea National Oil Corporation hold 20% and 29% stakes, respectively [6]

Core Insights - ConocoPhillips has confirmed a second natural gas discovery offshore Australia, enhancing the commercial viability for further exploration in the Otway Basin and highlighting its significance in the east coast gas market [1] Group 1: Discovery Details - Gas was confirmed at the Charlemont-1 exploration well offshore Victoria, validating the Charlemont Trend after the successful recovery of a gas sample [2] - The gas was found in the Waarre C sandstone, with wireline logging confirming hydrocarbons, adding unexpected upside to the discovery [3] - Elevated gas readings in the Waarre A sandstone suggest probable hydrocarbon presence, requiring further analysis to assess volumes and commercial potential [4] Group 2: Exploration Program - Charlemont-1 appraised the down-dip extent of the Charlemont Trend, demonstrating gas charge at both ends and de-risking several intervening prospects [5] - The Charlemont discovery follows the earlier Essington gas find, marking the second success under the Otway Exploration Drilling Program, reinforcing the prospectivity of the Charlemont cluster [6] - The exploration strategy focuses on infrastructure-led development, with discoveries near existing offshore gas production and processing facilities [6][7] Group 3: Operational Details - Charlemont-1 is located approximately 55 kilometers offshore Victoria in about 110 meters of water, with ConocoPhillips holding a 51% operating interest [8] - No decision has been made regarding further drilling at this time [8]

Group 1 - ConocoPhillips has made a natural gas discovery in the Otway Basin off the Australian coast, with reserves and commercial viability yet to be estimated [1] - The Essington-1 well marks the first discovery in the Otway since 2021, indicating a promising start to ConocoPhillips' exploration activities in the region [2] - ConocoPhillips holds a 51% stake in the Otway Basin project, partnering with Korea National Oil Corporation and Australian 3DEnergi, having joined the drilling project in 2019 [3] Group 2 - ConocoPhillips operates Australia Pacific LNG in partnership with Origin Energy and China's CNOOC, which is the largest LNG production site in eastern Australia, supplying nearly one-third of the region's natural gas [4] - The Australian Domestic Gas Security Mechanism aims to ensure sufficient natural gas for local consumers, but has faced criticism for not improving outcomes for gas users [5]