PROPERTY ACQUISITION / Murphy Oil Announces Acquisition of Malaysian
Offshore Blocks
TSE SYMBOL: MUR.U
NYSE SYMBOL: MUR
JANUARY 27, 1999
EL DORADO, ARKANSAS--Murphy Oil Corporation announced today in
Kuala Lumpur, Malaysia the signing of three Production Sharing
contracts covering Block SK 309, Block SK 311 and Block K. Murphy,
through its subsidiaries, holds interests of 85% in Blocks SK
309/311 and 80% in Block K, and operates each block. Petronas
Carigali holds the remaining interests. Present at the signing,
Claiborne P. Deming, Murphy's President and Chief Executive
Officer, said, "These three contracts mark a significant milestone
for Murphy and present us with exciting growth opportunities."
Blocks SK 309 and SK 311 are contiguous blocks covering 2.4
million acres in shallow waters offshore Sarawak. Previous
exploration has identified a number of attractive features, and
both blocks contain oil and gas discoveries. Deming added, "These
blocks play to our strengths as a successful, efficient
shallow-water operator, and coupled with Petronas's innovative
"Revenue over Cost" fiscal regime, present a good growth
opportunity for our Company."
Block K covers 4.1 million acres in deep waters offshore Sabah. It
adjoins Blocks G and H held by two major oil companies, with Block
G containing a recently announced discovery. No drilling has taken
place to date in Block K. "We are excited about the giant field
potential in this block and believe it is in an excellent
location," said Deming.
Commitments in Blocks SK 309/311 include acquisition of 2D and 3D
seismic and the drilling of four exploration wells within the
first five-year exploration period for a minimum total expenditure
of $15 million. Block K has a 2D and 3D seismic commitment plus
one exploratory well in the first seven-year period, with a
minimum expenditure of $14 million.
As operator, Murphy will open an office in Kuala Lumpur very
shortly to begin the new exploration program. |
