The Woodside Energy Group Ltd (ASX: WDS) share price is down 2% after announcing a new oil discovery.
Woodside is a large oil and gas business with a presence in regions like North America, Africa and Asia Pacific.
A new oil discovery
Woodside announced a non-operated oil discovery at the Bandit prospect in the Gulf of America, approximately 125 miles south of the Louisiana coast.
Bandit is operated by Occidental which has a 45.375% interest, alongside Chevron with a 37.125% interest and Woodside Energy has a 17.5% interest.
The ASX energy share said that the Bandit-1 exploration well, drilled in Green Canyon Block 680 and operated by Occidental, has encountered high-quality oil-bearing Miocene sands, with results now under joint review by the well participants.
What next?
The co-owners are currently evaluating results to determine the next steps.
Woodside said the discovery has the potential for a subsea tieback to an adjacent Occidental-operated facility or other platforms in the nearby area.
Woodside Executive Vice President and chief commercial officer Mark Abbotsford said the Bandit discovery reinforced the ongoing attractiveness of the US Gulf of America as an energy basis.
He also said that the result highlights the quality of the US Gulf of America and the role it continues to play in delivering “secure, reliable energy”.
Post-well studies are now underway – this discovery also demonstrates the value of disciplined exploration in established basins with clear pathways to commercialisation.
Abbotsford also said that in support of “high grading” its Gulf of America portfolio, it was the successful bidder on two blocks in the Big Beautiful Gulf (BBG) 2 Oil & Gas lease sale held in March 2026, subject to regulatory approval.
This further builds on the eight leases awarded to Woodside under the BBG1 lease sale held late in 2026.
Final thoughts on the Woodside share price
The business has risen more than 30% since the start of the year. It’s impossible to say what will happen next in the Middle East, but it doesn’t seem as though things are going to go back to normal any time soon.
Its earnings may increase from 2025, but I don’t know whether the ASX energy share can/will rise from here.
Here are other ASX dividend shares I’d buy first where ongoing growth from here seems more likely.
