Murphy Oil Makes Malaysian Deepwater Gas Discovery

Murphy Oil says that its Rotan #1 exploration well encountered significant natural gas pay in a single zone. The well reached a total depth of 7,024 feet and was drilled in 3,773 feet of water in Block H offshore Sabah, Malaysia.

"The results from Rotan #1 are very positive for this new play in Block H, and provide a strong beginning for us in 2007," said Claiborne P. Deming, Murphy Oil Corporation President and Chief Executive Officer. "This is our fourth exploration well in Block H and our first discovery there. We have always believed in the potential of deepwater Sabah and have maintained a high and consistent level of exploration activity since 1999. Success in this new play demonstrates the tremendous opportunity in the area on which to build," he further added.

Murphy, as operator, has an 80% working interest in Block H. Petronas Carigali Sdn. Bhd., a wholly owned exploration and production arm of Petronas, holds the remaining 20%.

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