Murphy Oil (MUR) reported earnings for the first quarter of 2010, and held a conference call to discuss the results. The company disclosed additional details on its acreage in the Eagle Ford Shale in Texas.
Murphy Oil (MUR) has accumulated more than 200,000 net acres across the oil and gas windows and has 2 rigs operating in the Eagle Ford Shale. The company has drilled 4 wells and reported the results of the Drees A-79 1-H and George Miles #1 well.
Drees A-79 1-H Well
“In the oil trend our number Drees number one in Karnes County came in at 1462-barrels of oil a day plus 1.25 million cubic feet of gas and had a 30-day production average of 1264-barrels of oil and 1.1 million cubic feet of gas per day. Clearly, a very strong well, and one that sets us up for a nice development.”
“The oil well in the Carnes is a great well and today, I was looking this morning before I came in and it's flowing 860-barrels of oil and 770,000 cubic feet. So that's after almost 60 days, 58 days today of production, so a real strong well.”
George Miles Well
“The second well in this acreage block spud shortly. The other two drilled wells are situated in the gas trend and are in various stages of completion. The earlier reported well test at the George Miles number one well in McMullen County is producing at less than 1 million cubic feet a day.”
“Here (George Miles well) our frac treatment did not open up all of the zones we thought and we are re-looking at our options. We have just completed a previously drilled well Ash Number 1 purchased as part of an acreage drill that's in LaSalle County and clean up is just above 2 million cubic feet a day.”
“Our budget for the Eagle Ford this near had a nominal 10 million cubic feet a day and clearly we aim to improve on that. On the beauty of this particular play is the ability to ship focus between the oil to the gas parts as product prices dictate.We’ve got $115 million in our budget for Eagle Ford spend.”
Source: Seeking Alpha