Murphy Updates Production Guidance

Murphy Oil is revising its production guidance for both the first quarter and full year 2006 to approximately 110,000 barrels of oil equivalent a day. The lowered volumes are primarily due to the Terra Nova field, offshore eastern Canada, which has experienced equipment issues and a recent unscheduled field shutdown combined with an extended turnaround expected in the third quarter.

The forecast for Gulf of Mexico production is also lower. It includes continued downtime for a non-operated field that remains partially offline following Hurricane Katrina. Dry hole charges for the first quarter of 2006 are now expected to be between $27 and $58 million. They include an unsuccessful well at Shrumbu drilled in Block H, offshore Sabah. Wells still pending during the quarter are the Rohu well (60 percent) in deepwater Malaysia and the Mahkota and Permas wells (85 percent) in shallow-water Malaysia.

"I remain optimistic with Murphy's future production outlook, which will be underpinned by a flush of production from the Kikeh field when it is placed onstream in the second half of 2007," said Claiborne Deming, Murphy's president and CEO.

"We are also working on several other projects which could come onstream following Kikeh to further boost Murphy's production profile," added Deming. "Meanwhile, we remain active in deepwater drilling as wells at the Rohu prospect offshore Sabah and the Thunder Bird prospect (37.5 percent) in the Gulf of Mexico near our Thunder Hawk field are currently underway."

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