Murphy Oil announced the adjustment of its 2008 results by $31.1 million due to the expensing of a well drilled on the Abalone Deep prospect in Block AC/P36, offshore Western Australia. The Abalone Deep #1 well was drilled by the Stena Clyde semisubmersible rig.
The well, completed after the Company's preliminary earnings release on January 28, 2009, encountered non-commercial quantities of natural gas and is being plugged and abandoned.
Because the Company has not filed its year-end financial statements with the Securities and Exchange Commission (SEC), accounting rules require that unsuccessful drilling costs incurred through December 31, 2008 be included in the 2008 financial statements that will be filed with the SEC on Form 10-K. The remainder of the Abalone Deep well costs incurred after December 31, 2008 will be expensed in the first quarter of 2009.
Murphy owns 40% with partners Finder Exploration (40%) and PTTEP Australia Offshore (20%).
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