Murphy Oil (MUR) to Plug, Abandon Solomon Well in Gulf of Mexico; Exploration Expense Guidance Increased

Murphy Oil (NYSE: MUR) announced the non-operated Solomon exploration well in Walker Ridge Block 225 in the Gulf of Mexico reached the targeted lower tertiary Wilcox at a total depth of approximately 34,600 feet. The well is being plugged and abandoned with no further activity planned. Murphy holds a 20 percent interest in the well which is operated by Marathon.

In addition, Murphy announced the operated Thunder Bird sidetrack well in Mississippi Canyon Block 819 in the Gulf of Mexico reached the targeted Middle Miocene zone at a total depth of approximately 21,900 feet. The well encountered producible hydrocarbons with approximately 75 feet of pay. However, due to current low oil prices and capital allocation review for the 2016 budget, a decision has been made to plug and abandon the well. Murphy operated the Thunder Bird well with an 87.5 percent working interest.

Murphy has increased its exploration expense guidance for the fourth quarter 2015 from $132 million to $235 million, of which $197 million is attributable to dry hole expense. Included in the dry hole expense is approximately $54 million related to the Solomon well and approximately $109 million related to the Thunder Bird operations, including $20 million related to the original well drilled in a prior year.

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