Murphy Oil announced that its wholly owned subsidiary, Murphy Oil Company Ltd., has commenced operation at the Tupper West natural gas processing facility in northeastern British Columbia. The Tupper West gas plant, with a capacity of 180 million cubic feet per day, is located 20 kilometers west of Dawson Creek, British Columbia, and is 39 kilometers from the Tupper Main facility, which started production in December 2008. Murphy holds a 100% working interest in the Tupper West plant and adjoining acreage.
David M. Wood, Murphy's President and Chief Executive Officer, commented, "We are very pleased to bring this project onstream ahead of schedule and on budget. This is another important growth milestone for our Canadian business," Wood added, "Ramp up of this low- cost Montney gas play adds to our growing production profile and is a key component of our North American resource portfolio."
Production from the Tupper West area is expected to contribute over 85 million cubic feet per day in 2011 with year-end exit rates projected to be over 120 million cubic feet per day.
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