Murphy Oil Corporation (NYSE:MUR) announced today the results of its recent drilling offshore Republic of the Congo in the Mer Profonde Nord (MPN) permit and entry into a new block offshore Australia.
The Opale Marine - 1 well in the MPN Block was unsuccessful and has been plugged and abandoned. The total net cost of the well is estimated at $48 million and will be expensed in the fourth quarter of 2012. As a result of the Opale Marine - 1 well outcome, Murphy will also take a noncash charge of $29 million in the quarter to write off the Titane Marine - 1 well which was drilled in October 2010 and had been suspended pending results of additional exploratory drilling on the block.
In another exploration focus area, the Company has expanded its position in the Browse Basin offshore Australia by picking up a 20% working interest in Block WA-408-P where drilling is expected to begin in December this year. This gas-prospective block directly offsets Block AC/P 36, in which Murphy holds a 50% working interest.
Source: Murphy Oil
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