CORP / Murphy Oil Reviews Conference Call
TSE SYMBOL: MUR.U
NYSE SYMBOL: MUR
FEBRUARY 4, 1999
EL DORADO, ARKANSAS--Claiborne P. Deming, President and Chief
Executive Officer of Murphy Oil Corporation (NYSE - MUR) (TSE -
MUR.U), provided an update of operating activities to the
investment community and media representatives during a conference
call on February 1, 1999. "Murphy, like every other oil company,
is in the throes of a difficult situation," Deming said. "Our
balance sheet provides the freeboard to allow us to continue a
meaningful capital program anchored by a firm slate of development
prospects. While thankful for the flexibility this provides, we
must continue the prudent management of available resources."
Highlights of the review of operations during the conference call
follow:
Exploration and Production
-- Two deepwater wells are currently drilling in the Gulf of
Mexico, one in the 'Auger' basin at Garden Banks 341 (Habanero,
33.8 percent), and one in the 'Enchilada' basin at Garden Banks
Block 168 (Wadden Zee, 33.3 percent). A natural gas discovery well
at East Cameron Block 38 (33.3 percent) is being completed and
first production is expected by mid-year.
-- Industry conditions will cause a slower pace of drilling on
the Gulf of Mexico shelf this year. A well at Eugene Island Block
59 (30 percent, 18 percent carried) should spud near the end of
the first quarter. In the deepwater Gulf, a well at Mississippi
Canyon Block 538 (Medusa, 75 percent) will likely commence in the
third quarter, and an offset well to the discovery in Viosca Knoll
Block 827 (North Marlin, 30 percent) is expected to spud at
mid-year. Should follow up drilling be necessary to evaluate any
success at the currently drilling Garden Banks wells, activity at
Mississippi Canyon Block 816 (Mamba, 30 percent) and Green Canyon
Block 24 (Sidewinder, 42.5 percent) may be delayed until next
year.
-- Onshore South Louisiana, an offset to the discovery at the
N.E. Wright field (50 percent) should spud in the late second
quarter/early third quarter time frame.
-- Frontier activity is highlighted by the successful conclusion
of negotiations regarding several blocks offshore Malaysia. Murphy
will be the operator and retain an 85 percent working interest in
two shallow water blocks offshore Sarawak and an 80 percent
working interest in a deepwater block offshore Sabah.
-- Production in 1999 should average approximately 69,000
barrels of liquids and 230 million cubic feet of natural gas per
day. Normal decline in U.S. gas production is being largely offset
by new production from Eugene Island Block 335 (60 percent), South
Pelto Block 18 (20 percent) and the Guidry well in the N.E. Wright
field (50 percent).
Refining, Marketing and Transportation
-- The Meraux, Louisiana refinery is in turnaround and is
expected to be back on stream in mid-February. Margins at the
Superior, Wisconsin refinery are positive owing to the continued
weakness in heavy oil pricing. The Milford Haven refinery has been
in partial turnaround and margins there are weak. The Wal-Mart
program is ramping up, with 32 service stations in operation, four
under construction, and approximately 20 new sites in the process
of obtaining governmental permits.
The forward-looking statements reflected in this release are made
in reliance upon the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. No assurance can be
given that the results discussed herein will be attained, and
certain important factors that may cause actual results to differ
materially are contained in Murphy's January 15, 1997 Form 8-K on
file with the SEC. |
