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Murphy Touts IP30s in Duvernay Appraisal, GOM Sidetrack Success, New King Cake Well

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Murphy Oil reported its Q3 2018 results.

Kaybob Duvernay - Advances Appraisal Program; Touts IP30 Averages

The company brought ten operated wells online across the Kaybob Duvernay acreage: a five well pad in Kaybob West, a three well pad in Kaybob North and a two well pad in Kaybob East.

You may recall that in Q2, Murphy added $50MM to its budget so it could drill more wells in the play.

All these wells are performing at or above pre-drill estimates with average IP30s ranging from approximately 725 to over 1,200 BOEPD.

With these wells being brought online, the company has advanced the appraisal of the play, with the exception of the Two Creeks area, which is expected to occur next year.

GOM - Samurai-2 Sidetrack Appraisal Hits Pay

During the third quarter, Murphy continued drilling the Samurai-2 appraisal sidetrack (Green Canyon 476) of the previously announced Samurai-2 discovery well (Green Canyon 432).

Total depth was reached in mid-October. The well successfully delineated the Samurai accumulation and confirmed the presence of high-quality reservoir sands and resources on the company's Green Canyon Block 476. The sands encountered in the sidetrack are equivalent and hydrostatically connected to those announced in the Samurai-2 well.

Following the logging of the sidetrack appraisal well, Murphy is increasing the previously announced discovered resource to approximately 90 million barrels of oil equivalent (MMBOE). At this time, Murphy and its partner are evaluating development plans for the Samurai discovery, as well as possible drilling plans for 2019.

New King Cake Well

The company also spud a new GOM well - the King Cake exploration well.

The prospect is testing the same intervals as the Gunflint Discovery nearby with the primary objectives in the Middle Miocene.

The company will update the result of the well in its 4Q report.

Eagle Ford

The company saw improved D&C costs in the Eagle Ford in Q3 - the company is currently seeing costs of $109 per foot.

Production Highlights - Duvernay Output Up 2.5x YOY:

• North American onshore business produced over 98 MBOEPD - up +15% YOY

• Eagle Ford production averaged 46 MBOEPD -

• Tupper Montney averaged over 240 Mmcf/d

• Increased production in the Kaybob Duvernay to 10 MBOEPD (up by nearly 2.5x YOY)