Disappointing appraisal results have prompted ConocoPhillips to pull out of further exploration activities at the Coronado prospect in the deepwater U.S Gulf of Mexico.
Houston-based ConocoPhillips owns a 35 percent stake in the prospect located in the Walker Ridge area.
Chevron discovered Coronado last year in the Lower Tertiary play of Walker Ridge Block 98 and drilled an appraisal well that came up dry.
Anadarko purchased a 20 percent stake in the prospect along with an operating stake in the appraisal well before the it was completed.
Chevron was reportedly cautious about banking on a large pay zone at Conocando, Upstream said.
“After further evaluation, the company has elected not to continue appraisal of the Coronado prospect and expenses the initial wildcat well costs as a dry hole,” ConocoPhillips said.
Exploration and production chief Matt Fox said the company will direct its exploration and appraisal dollars to other projects, including other projects in the Gulf of Mexico.
ConocoPhillips has about 2 million acres under lease in the U.S Gulf of Mexico, including 576,000 acres added in the most recent lease sale.
The company will have a rig under contract in the area beginning in early 2015.
Texas-based Anadarko said it is “continuing to evaluate the Coronado discovery and future actions.”
ConocoPhillips has not said if it will hold onto its Conocando stake or sell it off.
Anadarko owns a 35 percent operating stake in Conocando. Chevron owns a 20 percent stake in the prospect and Texas-based Venari Resources holds a 15 percent stake.