ConocoPhillips Announces New Oil Discovery; Street Sees 25% Upside

ConocoPhillips, a hydrocarbon exploration company, announced a new oil discovery in production license 891 on the Slagugle prospect located 14 miles north-northeast of the Heidrun Field in the Norwegian Sea.

ConocoPhillips (COP) said that according to the preliminary estimates, the size of the discovery ranged between 75 million and 200 million barrels of recoverable oil equivalent. The discovery well was drilled in 1,165 feet of water to a total depth of 7,149 feet by the Leiv Eiriksson drilling rig.

ConocoPhillips Skandinavia AS is the operator of the license with a working interest of 80%. Pandion Energy AS holds the remaining 20% interest.

“This discovery marks our fourth successful exploration well on the Norwegian Continental Shelf in the last 16 months,” said ConocoPhillips COO Matt Fox.

“All four discoveries have been made in well-documented parts of the North Sea and the Norwegian Sea and offer very low cost of supply resource additions that can extend our more than 50-year legacy in Norway.” added Fox.

Barclays analyst Jeanine Wai last week raised the stock’s price target from $49 to $55 (a 37% upside potential) and reiterated a Buy rating.

Wai believes that the North East Expansion Project makes sense for ConocoPhillips. (See COP stock analysis on TipRanks)

From the rest of the Street, the stock scores a Strong Buy analyst consensus based on 13 unanimous Buys. The average price target of $50.33 implies upside potential of 25% to current levels.

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