Murphy Oil (MUR) at Howard Weil

Murphy Oil

2007 was a “repositioning year” for Murphy Oil.

Acquired acreage in Suriname and Australia – leased blocks in GOM – natural gas play in British Columbia.

Production looks to about double from 2007 through 2010 to just over 200 K barrels a day.

Kikeh – 120,000 barrels per day by end of 2008.

Sarawak Natural Gas – supplies gas for LNG plant in Malaysia – production starts in 2009.

Tupper – natural gas play in Canada – tight gas play –2 TCF to Murphy after royalties.

2008 Exploration portfolio

U.S – 3 to 5 wells in Gulf of Mexico
Malaysia – 5 wells – Sabah field and Sarawak.
Australia – 1 well.
Congo – 2 or 3 wells.

New Areas

Suriname – bought block 37 – great source rock – looking for gas in this area will begin drilling in 2008.

Downstream Business

U.S retail – Walmart partnership – 20 state region – growing market share. Selling almost 300K gallons per month. Margin per site for non fuel is now $13,000 per site.

Refineries

Meraux, LA – 125K barrels per day
Superior, WI – 35K barrels per day.
Milford Haven, UK – 108K barrels per day.

Conclusion – a quiescent 2007 to change to significant exploration in 2008.