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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (65600)	5/2/2000 1:46:00 PM
From: The Ox	Read Replies (1) \| Respond to of 95453

Murphy Oil Reviews Conference Call EL DORADO, Ark.--(BUSINESS WIRE)--May 2, 2000--Claiborne P. Deming, President and Chief Executive Officer of Murphy Oil Corporation (NYSE: MUR), provided an update of operating activities to the investment community and media representatives during a conference call on April 27, 2000. Highlights of the review of operations during the conference call follow: Exploration and Production - In the Gulf of Mexico deep water, Murphy's strategy remains opportunity-driven, with the expectation of drilling four to six wells this year. Favorable results have been achieved from the fourth well at the Murphy-operated Medusa discovery, located in Mississippi Canyon Blocks 538/582 (60%). The well encountered over 250 feet (true vertical thickness) of net oil pay. Gross recoverable reserves are now estimated at 100 million barrels of oil equivalent. The development phase of the project is under way, with expected first production of 25,000 barrels of oil equivalent a day, net to Murphy, beginning in mid-2002. Upcoming wells include the Cumberland prospect at Green Canyon Block 297 (45%) and Locomotion at Garden Banks Block 562 (37.5%). Cumberland is located near the Allegheny facility, and should a discovery be made, development could quickly proceed. Pre-drill reserve estimates are 30 to 60 million barrels of oil equivalent. Locomotion is located in the mini-basin south of the Auger basin, and depending on rig availability, should spud this summer targeting estimated potential of 100 to 120 million barrels of oil equivalent. Murphy will be the operator of both prospects. The drilling schedule for the latter part of the year includes Murphy-operated prospects at Moccasin (Garden Banks Block 297, 37.5%) and Sidewinder (Green Canyon Block 25, 42.5%). - Internationally, the Hibernia field (6.5%), offshore Newfoundland, is performing well and recently reached levels of 189,000 gross barrels of oil per day. The Terra Nova development (12%) is proceeding on schedule as the floating production and storage offloading vessel has passed though the Suez Canal en route to Bull Arm, Newfoundland, where it will be fitted with topsides in preparation for first production in early 2001. On the Scotian Shelf, 3-D seismic surveys will be completed this year on two blocks south of the Sable Island producing area: the shallow-water Southampton block (25%) and the deeper water Annapolis block (20%). Seismic data will also be acquired on three other blocks, one of which lies south of a Pan Canadian discovery well where Murphy may spud a well later this year. In Malaysia, 2-D seismic surveys will be shot in May over Murphy's 100% owned deepwater Block K in an effort to high-grade areas of opportunity in advance of 3-D seismic surveys scheduled in 2001. Both 2-D and 3-D seismic surveys will be shot this year over wholly owned Blocks SK 309 and SK 311, shallow-water blocks off the coast of Sarawak. A well in Block SK 309 is slated to be drilled in October targeting both oil and gas objectives. - On the production front, Murphy's volumes of natural gas in the United States have totaled approximately 150 million cubic feet a day and will remain in that range for the balance of the year. In Canada, natural gas volumes will reach 75 million cubic feet per day in May, reflecting the tie-in of Murphy's discovery at Chicken Creek in the Canadian foothills and other discovery wells in the Hamburg and Ladyfern areas of northern British Columbia and Alberta. Refining, Marketing and Transportation - Margins at both Murphy refineries in the United States were under pressure during most of the quarter. Margins at Meraux have now improved to the $1.50 per barrel range, with Superior's margins lagging somewhat. However, the month of May marks the beginning of Superior's asphalt season that bodes well for U.S. margins in the second quarter. - Murphy's Wal-Mart program continues on pace with 153 stations currently in operation, 23 under construction and 47 in the permitting stage. With the healthy margins and growing volumes experienced in recent weeks, this marketing investment has become a growing and profitable line of business for the Company. 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 report on file with the SEC. CONTACT: Murphy Oil Co., El Dorado Investor Relations: Kevin G. Fitzgerald, 870/864-6272 or Public Relations: Betty LeBrescu, 870/864-6222 murphyoilcorp.com