Source: Murphy Oil
Murphy Oil Corporation (NYSE:MUR) announced today the results of its recent Republic of the Congo drilling campaign in the Mer Profonde Sud permit.
The Cobalt Marine #1 exploration well and the Turquoise Marine #3 well both failed to find commercial quantities of hydrocarbons. The Turquoise Marine #4 did find well developed deeper reservoirs with a minor accumulation of oil. All three wells were operated by Murphy West Africa, Ltd. at a 58.82% working interest and were plugged and abandoned. The total net cost of the program is estimated at $36 million and will be expensed in the fourth quarter of 2010.
David M. Wood, Murphy’s President and Chief Executive Officer, commented, “Our aim with this three well program was to delineate the area around the Turquoise Marine #1 oil discovery and prove up standalone volumes. These results, while disappointing, will lead us to look into a tie-back to Azurite development option more closely. We continue to evaluate our exploration program in Republic of the Congo and are pleased to be nearing final conclusion on improved fiscal terms.”