ConocoPhillips To Begin Drilling At Australia's Browse 4Q 2011

ConocoPhillips (COP) said Tuesday that it aims to begin a major drilling program on its Browse gas project before the end of this calendar year that could lead to a potential liquefied gas development.

The drilling program, in partnership with joint venture partner Karoon Gas Australia Ltd. (KAR.AU), is expected to cost "close to US$500 million", said Todd Creeger, Australian President of ConocoPhillips.

The 5-well program will establish the size of the resource, though ConocoPhillips believes the project contains "multiple" trillions of feet of gas, Creeger told reporters after a speech in Perth.

At the conclusion of the drilling program, expected to take 18 months to two years, Conoco expects to announce a development concept for the field offshore Western Australia, he said.

Depending on the size of the gas find, the company will consider several LNG options including a development at James Price Point onshore Western Australia, piping the gas to Darwin and floating LNG, Creeger said.

-By Stephen Bell, contributing to Dow Jones Newswires; 61-8-9244-4243;