Murphy Oil Pumps First Oil at Thunder Hawk

Murphy Oil announced that the Thunder Hawk field located in Mississippi Canyon Block 734 in the Gulf of Mexico has commenced production. The field lies in over 5,700 feet of water, approximately 145 miles southeast of New Orleans, Louisiana.

A semisubmersible floating production unit with production capacity of 45,000 barrels of oil per day and 70 million cubic feet per day of natural gas is being utilized. The field will initially produce from three subsea wells connected via flow lines to the facility.

Murphy Oil Corporation's President and Chief Executive Officer, David M. Wood, said, "Production from Thunder Hawk will be ramped up during the second half of the year and should contribute nicely to our increasing production profile."

Murphy serves as operator and has a 37.5% working interest in Thunder Hawk. Partners are Eni (25%), StatoilHydro USA E&P, Inc. (25%), and Marubeni Oil & Gas (USA) Inc. (12.5%).

About Thunder Hawk

Discovered on Oct. 27, 2006, the Thunder Hawk discovery well, or well No. 1 ST1, was drilled by the Transocean Marianas semisub and encountered 300 feet (91 meters) of net oil pay in two high-quality reservoir zones.

Verifying the previous discovery, an additional well was drilled in 5,716 feet (1,742 meters) of water, and encountered more than 500 feet (152 meters) of net pay in two high-quality sands.

Following a successful appraisal of the discovery, Thunder Hawk was deemed commercially viable with estimated recoverable reserves of 50 to 80 MMboe.