|Image from IOG.|
Murphy Oil encountered hydrocarbon pay at its Thunder Bird sidetrack well in the Gulf of Mexico, but has decided to plug and abandon the well, due to the low oil price environment.
Murphy's Thunder Bird sidetrack well, located in Mississippi Canyon Block 819 in the Gulf of Mexico, reached the targeted Middle Miocene zone at a total depth of approximately 21,900ft.
The well encountered producible hydrocarbons with approximately 75ft of pay. However, due to current low oil prices and capital allocation review for the 2016 budget, a decision has been made to plug and abandon the well. Murphy operated the Thunder Bird well with an 87.5% working interest.
Murphy has increased its exploration expense guidance for Q4 2015 from US$132 million to $235 million, of which $197 million is attributable to dry hole expense. Included in the dry hole expense is approximately $54 million related to the Solomon well and approximately $109 million related to the Thunder Bird operations, including $20 million related to the original well drilled in a prior year.
Murphy is a global independent oil and natural gas exploration and production company, with proved reserves of 756 MMboe at year-end 2014. The company's diverse resources base includes offshore production in South East Asia, Canada and Gulf of Mexico; as well as, North American onshore plays in the Eagle Ford Shale and Montney.