ConocoPhillips Ends Activities in Central Louisiana Austin Chalk

By Colin Kellaher

ConocoPhillips (COP) on Monday said it has discontinued exploration activities in the Central Louisiana Austin Chalk trend amid disappointing results from the play.

The Houston energy company said it will record a roughly $120 million pretax Lower 48 dry-hole expense in the third quarter, primarily related to Austin Chalk play.

The company said it also expects to record a non-cash leasehold impairment related to the acreage.

ConocoPhillips executives in July had said that results from the play, which runs from south Texas through Louisiana and into Mississippi, had been disappointing, and industry news website Upstream last week reported that the company had placed its entire 234,000-acre Austin Chalk holdings on the market.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

September 30, 2019 09:01 ET (13:01 GMT)

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