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EXPLORATION AND PRODUCTION – Murphy Oil Corp

Murphy Oil Corp · May 10, 2011 · 58 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 1
    Exploration & Production Roger Jenkins Executive Vice President - Exploration & Production Sam Algar Vice President - Worldwide Exploration May 10, 2011 MURPHY EXPLORATION & PRODUCTION COMPANY 1
  2. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 2
    Agenda Upstream Strategy Review 300,000 BOEPD Goal In View Global Exploration Portfolio 2011 - 12 Production Reserves Migration MURPHY EXPLORATION & PRODUCTION COMPANY 2
  3. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 3
    Murphy E&P - Growing, Global, Diverse Player Global Footprint Deepwater & Resource Plays Diverse Markets Production Growth Oil Other - 5% Linked Brent WTI N.A. Gas Gas 36% 25% 20% 14% MURPHY EXPLORATION &…
  4. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 4
    Our Strategy Is Working MAINTAIN BACKSTOP EXPLORATION GLOBAL IMPACTFUL WITH RESOURCE EXPLORATION PROGRAM PLAY GROWTH 61% Success Rate 700,000 Acres in 2010 330 Wells 12 Wells in 2011 4 Plays 19 Wells in 2012 44,000 BOEPD 2011 2…
  5. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 5
    300,000 BOEPD Plan 350,000 350,000 300,000 300,000 250,000 250,000 200,000 200,000 150,000 150,000 100,000 100,000 50,000 50,000 0 0 2010 2011 2012 2013 2014 2015 Oil % 68% 59% 62% 59% 58% 57% Existing Sanctioned…
  6. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 6
    Existing Production by Major Project, MBOEPD by Region, MBOEPD 250 250 200 200 150 150 100 100 50 50 - 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Congo UK CAN:Syncrude CAN:East Coast CAN:Tupper CAN:Seal Other…
  7. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 7
    Projects Sanctioned Resource * Area Project Production Growth, MBOEPD (Net MMBOE) 100 Montney Tupper West 300 Schiehallion Eagle Ford Karnes 60 SK Gas Ph 2 Serendah & 75 Msia Sarawak 25 Serendah Patricia Kakap Msia Sarawak SK…
  8. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 8
    Projects Sanction Likely Resource * Area Project Production Growth, MBOEPD (Net MMBOE) 125 Eagle Ford Tilden 200 Blk H FLNG Eagle Ford Catarina 125 SK Oil Eagle Ford Nueces 535 100 GoM Eagle Ford Tilden 2 40 Siakap N Additional…
  9. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 9
    North America Resource Plays - Backstop of the Plan +300 Wells Producing Montney Production at Year End Seal 195 MMCFPD So. Alberta 13,300 BOPD 700,000 Acres Eagle Ford Shale 1,540 MMBOE Total Resource (Gross wells)…
  10. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 10
    Eagle Ford Shale Activity TEXAS KARNES TILDEN 2010 2011 2012 2013 2014 2015 CATARINA 25 Horizontal Wells Drilled - 15 Producers - 10 Waiting on Completion Status Phase I - Acquired Murphy Acreage NUECES Phase II…
  11. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 11
    Eagle Ford Shale A Key Business Plan 70,000 Entered Play in 2009 60,000 50,000 Oil Focused BOEPD 40,000 30,000 Drilling, Producing, Leasing 20,000 10,000 0 Drilling Operations 2009 2010 2011 2012 2013 2014 2015 Improved…
  12. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 12
    Major Eagle Ford Acreage Positions Murphy Acreage 220,000 Acres 600,000 Acreage by Company 400,000 200,000 - 0 10 mi COP PXD MUR APC EP HK EOG SM CHK NFX TLM XOM MURPHY EXPLORATION &…
  13. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 13
    Tilden Karnes Karnes (W.I. Avg. = 75%) 19,200 Gross Acres Sanctioned Dec. 2010 4500 Net BOEPD 2011 Exit Tilden (W.I. Avg. = 93%) 240 Locations 80 Ac. 78,900 Gross Acres Spacing 985 Locations 80 Ac. Assumed 580 MBOE per Spacing…
  14. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 14
    Catarina Nueces Catarina (W.I. Avg. = 100%) 46,200 Acres 5 Wells Drilled / 3 Wells Completed 580 Locations 80 Ac. Spacing Assumed 355 MBOE per Well EUR Sanction Oct. 2011 Nueces (W.I. Avg. = 92%) 93,500 Gross Acres 6 Wells…
  15. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 15
    Karnes Field Exceeding Expectations 1000 Drees 1H Cumulative = Drees 1H 188 MBO JOG 1H JOG 1H Cumulative = 100 MBO Bellah 1H 500 Schendel A 1H Oil Rate (BOPD) Schendel C 1 H Wilson 1H 100 0 3 6 9 12 15 Months…
  16. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 16
    Karnes Field Production Rate EUR 500 MBO / Well A Closer Look Drees 1H JOG 1H Schendel A 1H Bellah 1H Schendel C 1H Wilson 1H MURPHY EXPLORATION & PRODUCTION COMPANY 16
  17. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 17
    Eagle Ford Shale Value Murphy Leasing Cost = 1,766 / Acre Oil Resource Gas Resource Implied Land Potential Potential Recent Transactions Value Land (Net MMBO) (Net BCF) ( per Acre) ( MM) Karnes 65 65 12,000 to 15,000 200 Tilden 340…
  18. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 18
    BRITISH COLUMBIA ALBERTA Montney - Low Cost Gas Play Groundbirch British Columbia Alberta Entered Play in 2007 TCPL Tupper West Daily Production = 200+ Dawson Creek MMCFPD Brassey Drilling and Completion Sundown Tupper…
  19. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 19
    BRITISH COLUMBIA ALBERTA Tupper Tupper Main Production: 100+ MMCFPD 75 Wells Flowing Sanction Recovery: 305 BCF at 3.5 BCF/Well (Gross) Tupper West On Production Feb 2011 2 Months Early 40 Hz Wells Completed 31 Flowing…
  20. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 20
    Montney Improvement Initial Production Rates Cumulative Drilling and Completions Cost MCFPD /MCF 14,000 10 12,000 9 10,000 8 8,000 6,000 7 4,000 6 2,000 5 0 4 Wells - 1 6 11 16 21 26 31 36 41 46 51 56 61 3 14,000 2 12,000…
  21. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 21
    Tupper Lower Montney Hz Well Performance 6000 50 45 5000 40 Gross Gas Rate (MCFPD) 35 4000 Well Count 30 3000 25 20 2000 15 10 1000 5 0 0 0 100 200 300 400 500 600 700 800 Time (Days) Average Average…
  22. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 22
    Montney Resources and Value EUR EUR Upside (BCF) (BCF) Tupper Main 400 280 Tupper West 850 950 Groundbirch 150 Brassey 80 Sundown 190 Other Zones + 350 Downspacing Total 1,670 1,580 Murphy Implied Value: Comparable Trade /…
  23. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 23
    Murphys Montney 6.00 4.00 2011 Price 4.27 / MCF (C/MCF) 2.00 Top Quartile Performance 0.00 Low Supply Cost 2009 2010 2011 Opex DD&A Significant Presence: Well Capability by Operator Acreage, Facilities, Productio 350 n…
  24. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 24
    BRITISH COLUMBIA Seal ALBERTA Murphy 100% Lands Current Polymer BOPD 20,000 Murphy 50% W.I. Lands Steam EOR Polymer EOR Current Thermal 15,000 Conventional Base Successful Strats 10,000 CADOTTE NORTH 5,000 - Land…
  25. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 25
    Seal Pilot Polymer Flood Injection Started Oct. 2010 Well Pad Producer Injector 70% Voidage Replacement to Date Production Impact QTR 2 / QTR 3 2011 Seeking Approval for Full Development MURPHY EXPLORATION & PRODUCTION…
  26. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 26
    Seal Resources 5,850 STOIIP MMSTB Polymer / Thermal Type of Recovery Primary Polymer Thermal Total TBD 2,555 500-700 1,000-1300 1,295 1,795 5,850 Identified STOIIP MMSTB MMSTB MMSTB MMSTB MMSTB 70-155 45-75 190-370 50-450…
  27. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 27
    Malaysia Projects Sarawak Significant Projects Ahead Key Infrastructure in Place Very Successful Delineation 2010 2011 2012 2013 2014 2015 Program BOEPD 80,000 70,000 SK Gas Ph 2/3 Sabah 60,000 Blk H FLNG Block H Floating…
  28. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 28
    Sarawak 100% Delineation Success Blk. H Blk. P CA-1 Blk. K SABAH CA-2 SK Area SAPIH SARAWAK MAHKOTA ROMPIN ENDAU PERMAS TIRAM SERAMPANG WANGSA PATRICIA E. PATRICIA W. PATRICIA SOUTH ACIS MERAPUH…
  29. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 29
    Sarawak Oil Production 45,000 Oil & Condensate (BOPD) Future Fields 40,000 Existing 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - Successfully Resource Delineated Projects (Net MMBOE) Sanction Date Serendah &…
  30. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 30
    Blk. H Blk. P Block H Rotan - Floating LNG CA-1 Blk. K SABAH CA-2 SK Area Post 2015 Growth SARAWAK Gas Price Negotiations Ongoing New Technology for Stranded Gas Partner with Key LNG 20,000 BOEPD Supplier Blk H FLNG…
  31. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 31
    300,000 BOEPD by 2015 Goal Clearly in View Working in Our Backyard Not Dependent on Exploration Success Resource Plays - Major Contributor Industry Proven Plays Reserve Booking Upside Sanction Likely Category De-Risked…
  32. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 32
    EXPLORATION MURPHY EXPLORATION & PRODUCTION COMPANY 32
  33. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 33
    Global Exploration Strong Exploration Portfolio Multiple Impactful Prospects Variety of Locations & Basins Oil Focus Significant Portfolio Growth Ongoing Kurdistan, Brunei, Indonesia 2 New Country Entries Imminent MURPHY…
  34. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 34
    Exploration Strategy Solid Geological Understanding of Basin Consistent Global Resource, Risk & Value Assessments Oil Focus 12 - 15 Wells per Year Program Find More Than We Produce Focused Growth Areas: Existing Operational…
  35. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 35
    A Growing Portfolio: New Acreage Since May 2010 KURDISTAN Central Dohuk (50%) BRUNEI CA-1 (5%), CA-2 (30%) INDONESIA Wokam II (100%) Semai IV JSA New Acreage Wanapiri JSA Focus Areas in Which We Are Negotiating…
  36. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 36
    Exploration Drilling PREDICTIONS Targets Category 2009 2010 2011 2012 12 15 Wildcat Exploration Wells 7 9 13 15 Discoveries 4 3 1 : 3 (30%) % Success 57% 33% Net Spend 182 MM 205 MM 200MM 300MM Net Resource Found/ 80 100 90…
  37. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 37
    2011 - 2012 Exploration Program Q3 - 11 Q4 - 11 Q1 - 12 Q2 - 12 Q3 - 12 Q4 - 12 INDONESIA Semai ll South Barito CONGO MPN MPS BRUNEI CA-1 CA-2 KURDISTAN Central Dohuk + AUSTRALIA WA-423-P NTP-80 MALAYSIA Block H & P GOM…
  38. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 38
    Congo Significant Potential Remains New 3D in MPN Drilling Extensions of Proven Plays Titane Post-Salt Carbonates Pre-Salt 2011 1 or 2 Wells 2012 2 Pre-Salt Wells MURPHY EXPLORATION & PRODUCTION COMPANY 38
  39. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 39
    West Africa Focus GHANA AFRICA Jubilee Fields Focus Area SOUTH AMERICA AFRICA SOUTH Congo Exploring AMERICA MPN, MPS Analogues to Recently Discovered Giant Fields BRAZIL Campos Finalizing Sub-Salt Fields Negotiations…
  40. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 40
    Blk. H Blk. P Brunei CA-1 & CA-2 CA-1 Blk. K SABAH CA-2 SK Area SARAWAK Multiple Mega Structures BLOCK K BLOCK CA-1 (5% W.I.) Kikeh Kakap- Drilling Schedule Gumusut BLOCK CA-2 Lepu-1 3 4 Wells in 2011 (30% W.I.)…
  41. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 41
    TURKEY Kurdistan SYRIA IRAN IRAQ MURPHY Central Dohuk Central Dohuk 50% W.I. Operator Procuring Seismic Q1 2012 Drilling New Block Signing Erbil Imminent 20% W.I. Q4 2011 Drilling Drilling Kirkuk Oil Discovery Oil…
  42. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 42
    Kurdistan Central Dohuk 2 Giant Structures Linnava: 3 - 6 Billion BBLS Simplified Legend STOIIP Pliocene Miocene Gali: 1 - 3 Billion BBLS STOIIP Oligocene U Eocene M, L Eocene Paleocene 2012 First Well U Cretaceous…
  43. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 43
    Gulf of Mexico CA VK WC EC VR BS SM MP DD 173 Active Lease Blocks AP WD VK 12 Prospects, 75% Oil EI Dalmatian South PL GI 3 Different Play Types Medusa SP SS ST 2011 Deep Blue Hornet 2012 4 Wells Thunder Hawk DC FM MC…
  44. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 44
    Murphy Exploration Global Exploration Reach Increased Chance of Exploration Success Less Affected by Country Specific Issues (e.g., GoM) Multiple Locations with Potential for Impactful Discoveries Brunei, Indonesia, Kurdistan,…
  45. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 45
    PRODUCTION RESERVES OPERATIONS MURPHY EXPLORATION & PRODUCTION COMPANY 45
  46. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 46
    Production Net Production, BOEPD 300,000 200,000 CAGR 4.3% 1990-2010 100,000 - 1990 1995 2000 2005 2010 2015 MURPHY EXPLORATION & PRODUCTION COMPANY 46
  47. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 47
    2011 Production 250000 225000 Guidance 200000 BOEPD 175000 150000 125000 100000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Actual Forecast MURPHY EXPLORATION & PRODUCTION COMPANY 47
  48. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 48
    Production Impacts Macondo Gulf of Mexico 2010 = 3,500 BOEPD Development Well Deferrals 2011 = 8,200 BOEPD Dalmatian Development Delay EFS Move from Gas Focus to Higher Value Oil Focus 2010 = 1,200 BOEPD 2011 = 2,700…
  49. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 49
    Limited Wells & Facilities Improving 500 2,000 60% of Operated Production BOEPD per W.I. Well 400 No. of W.I. Wells 1,500 300 12% of Wells 1,000 200 100 500 24% Controlled by External 0 0 Facilities 2010 2011 2012…
  50. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 50
    Sarawak Gas Solid Long Term Project 300 250 200 Gas Rate* (MMCFPD) 150 100 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 P Golok, Merapuh, Serampang Belum, Permanis…
  51. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 51
    Legacy Properties aka Oldies But Goodies Schiehallion 5.88% W.I. Redevelopment Sanctioned in April 16 MMBO Reserve Adds 29 MMBO Net Reserves to be Recovered Hibernia 6.5 % W.I. Produces +195,000 BOPD Gross Recent Delineation…
  52. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 52
    Total Hydrocarbon Base Forecast 2009 2010 2011 2,814 MMBOE 3,291 MMBOE 3,400 MMBOE 439 MMBOE 455 MMBOE 500 MMBOE 18% 16% 14% 15% 36% 36% 14% 15% 14% 37% 10% 10% 15% 25% 25% Proved Probable Possible Contingent…
  53. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 53
    Reserves Forecast 250 220 Proved Reserve Adds Replacement (%) 200 200 Production (MMBOE) 180 150 160 100 140 50 120 0 100 2010 2011 2012 2013 2014 2015 Conventional Reserve Adds Resource Play Reserve Adds…
  54. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 54
    Production & R/P Forecast 400 10.0 350 9.5 Production (MBOEPD) 300 288 304 9.0 R/P (Years) 250 255 8.4 8.5 223 200 186 200 8.0 7.8 150 7.6 7.5 7.3 100 6.9 7.0 6.7 50 6.5 0 6.0 2010 2011 2012 2013 2014…
  55. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 55
    Contractors Safety Performance TRIR 12 Month Rolling Average - 2011 Contractors 1.50 1.30 1.21 1.17 1.09 1.10 1.07 1.16 1.17 1.05 1.05 1.05 1.05 1.01 0.98 0.90 TRIR Contractor TRIR Goal: 0.90 0.70 0.50 0.30 0.10…
  56. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 56
    Operations North America U.S. Gulf of Mexico Back to Work - Finally 95% Facility Uptime U.S. Eagle Ford Shale Karnes Drilling Improvement 36% in 1 Year Canada Montney Improved Safety Completions Benchmark Leader Cost & IP…
  57. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 57
    Operations International Malaysia 97% Oil Uptime at Kikeh West Patricia No LTIs Best in Class Drilling Region West Africa Congo Best in Class Drilling Region Azurite Completions Improved 45% 99% Oil Uptime at Azurite…
  58. EXPLORATION AND PRODUCTION – Murphy Oil Corp – slide 58
    Moving Forward 300,000 BOEPD Goal Intact Strong Production Growth & Replacement Continues Resource Plays Leading Reserve Migration Drill, Produce and Lease Continue to Re-Load Our Impactful Exploration Program Remain Oily 2011…

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