Murphy Drills Duster in Gulf of Mexico

Murphy Oil reports that the RunfortheRoses well, located in Green Canyon Blocks 735/736, encountered non-commercial quantities of hydrocarbons. The well was drilled to a total depth of 22,715 feet by the semisub, Cajun Express, and was plugged and abandoned.

Murphy owned a 50% working interest in the well, but paid 33% of the drilling costs. Pre-tax dry hole costs for the well were approximately $5.5 million net to Murphy, and of that amount, approximately $3 million will be charged to expense in the first quarter, with the remainder to be expensed in the second quarter. Previous first quarter earnings guidance of $.70-.75 a share did not include any charges for the RunfortheRoses well. Kerr-McGee held the other 50% interest in the prospect.