Murphy Posts Higher Dividend, Elects New Director

Murphy Oil Corp.

The board of Murphy Oil Corp. on Wednesday declared a quarterly dividend on the company's common stock of 15 cents per share, or 60 cents per share on an annualized basis. The previous annualized dividend level was 45 cents per share. The dividend is payable September 1, 2006, to holders of record August 15, 2006.

In commenting on the 33.3% dividend increase, Claiborne P. Deming, Murphy's president and CEO, said, "We are pleased to provide our shareholders with a higher quarterly dividend reflecting our confidence in the successful execution of our strategic plans and our focus on creating value for our shareholders."

The company also announced that James V. Kelley has been elected to its board effective August 2, 2006.

Kelley is president and COO of BancorpSouth, Inc. in Tupelo, Miss., and is a member of its board. He has served in this position since 2000. Previously he was chairman, president, and CEO of First United Bancshares, Inc., which merged with and into BancorpSouth in 2000.

Kelley received a BSBA degree from Ouachita Baptist University and has completed various financial schools and courses, including, the School of Bank Marketing, University of Colorado and the Southwestern Graduate School of Banking, Southern Methodist University. He currently serves as director for both Arkansas Blue Cross Blue Shield and USAble Corp.

"We are delighted that Jim has joined our board," said William C. Nolan, Jr., chairman of Murphy's board. "His banking experience and financial expertise will mean a great deal to Murphy Oil in the years ahead."