Murphy Oil Corporation Announces Oil Discovery at Hai Su Vang-1X in Offshore Vietnam

Rhea-AI Summary

Murphy Oil (NYSE: MUR) has announced an oil discovery at the Hai Su Vang-1X exploration well in Block 15-2/17, Cuu Long Basin, located 40 miles offshore Vietnam. The well, drilled to 13,124 feet in 149 feet of water, encountered approximately 370 feet of net oil pay from two reservoirs.

Murphy's subsidiary, Murphy Cuu Long Tay Oil Co., , operates the block with 40% working interest, alongside PetroVietnam Exploration Production (35%) and SK Earthon Co., (25%). Additional evaluation and future appraisal drilling are planned, with Hai Su Vang being one of multiple exploration prospects identified in the basin. The discovery could form the basis for future development of the Hai Su Vang field.

Positive

• Discovery of 370 feet of net oil pay from two reservoirs
• Strategic position with 40% working interest in the block
• Multiple additional exploration prospects identified in the basin
• Potential for future field development

Negative

• Additional evaluation and appraisal drilling required before development
• Significant capital investment likely needed for field development

Insights

Petroleum Geologist

The discovery at Hai Su Vang-1X is technically impressive, with 370 feet of net oil pay across two reservoirs representing a substantial find in the Cuu Long Basin. The water depth of 149 feet is relatively shallow for offshore operations, which typically translates to lower development costs compared to deep-water projects. The multi-reservoir nature of the discovery enhances its commercial potential, as it could allow for efficient resource extraction through shared infrastructure. The Cuu Long Basin is known for its prolific oil-bearing formations and this discovery's location near existing infrastructure could accelerate its path to production. The 40% working interest as operator gives Murphy significant control over development decisions while maintaining a balanced risk profile through partnership with established regional players PetroVietnam and SK Earthon.

Energy Investment Analyst

This discovery materially strengthens Murphy's Asian portfolio and could significantly impact their reserves replacement ratio. The shallow water location and partnership with PetroVietnam, the national oil company, reduces both technical and political risks. The presence of multiple exploration prospects in the block suggests potential for further discoveries, creating a valuable exploration corridor for Murphy. The 40% operating stake positions Murphy to capture substantial value while sharing capital requirements with partners. The timing is particularly favorable given current oil price environments and growing energy demand in Southeast Asia. For retail investors, this represents a tangible catalyst for Murphy's medium-term growth prospects, potentially supporting future production and cash flow expansion without the high costs typically associated with deep-water developments.

Market Research Analyst

Vietnam's strategic position in Southeast Asia and its growing energy needs make this discovery particularly valuable from a market perspective. The country's favorable fiscal terms for oil development, combined with its proximity to major Asian markets, enhances the commercial viability of this discovery. Murphy's ability to secure operatorship in this competitive region demonstrates strong regional relationships and technical capabilities. The partnership structure with PetroVietnam (35%) and SK Earthon (25%) provides optimal balance between local expertise and international technical capabilities. This discovery could serve as a catalyst for Murphy's stock valuation, as successful exploration results typically lead to positive rerating of E&P companies, especially when they open up new areas for future development.

HOUSTON--(BUSINESS WIRE)-- Murphy Oil Corporation (NYSE: MUR) today announced that its subsidiary has drilled an oil discovery at the Hai Su Vang-1X exploration well in Block 15-2/17 in the Cuu Long Basin, located 40 miles offshore Vietnam. The well was drilled to total depth of 13,124 feet in 149 feet of water. Hai Su Vang-1X encountered approximately 370 feet of net oil pay from two reservoirs.

Additional evaluation is ongoing and future appraisal drilling will be conducted.

Hai Su Vang is one of multiple exploration prospects that Murphy has identified in the basin. The findings announced today could form the basis for future development of the Hai Su Vang field.

Murphy’s subsidiary, Murphy Cuu Long Tay Oil Co., Ltd., is the operator of the block with 40 percent working interest. PetroVietnam Exploration Production Corporation Ltd. holds 35 percent working interest and SK Earthon Co., Ltd. holds the remaining 25 percent.

“I am pleased with the success of the Hai Su Vang-1X exploration well. This discovery adds further upside to our current Vietnam business,” said Eric M. Hambly, President and Chief Executive Officer. “We look forward to working with our partners as we continue evaluating the results.”

ABOUT MURPHY OIL CORPORATION

As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. Murphy challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. Murphy sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company’s website at www.murphyoilcorp.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “expressed confidence”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events, results and plans, are subject to inherent risks, uncertainties and assumptions (many of which are beyond our control) and are not guarantees of performance. In particular, statements, express or implied, concerning the company’s future operating results or activities and returns or the company's ability and decisions to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, safety matters or other ESG (environmental/social/governance) matters, make capital expenditures or pay and/or increase dividends or make share repurchases and other capital allocation decisions are forward-looking statements. Factors that could cause one or more of these future events, results or plans not to occur as implied by any forward-looking statement, which consequently could cause actual results or activities to differ materially from the expectations expressed or implied by such forward-looking statements, include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; geopolitical concerns; increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the U.S. or global capital markets, credit markets, banking system or economies in general, including inflation. For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts and the investors page of our website. We may use these channels to distribute material information about the company; therefore, we encourage investors, the media, business partners and others interested in the company to review the information we post on our website. The information on our website is not part of, and is not incorporated into, this news release. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250107201062/en/

Investor Contacts:

InvestorRelations@murphyoilcorp.com

Kelly Whitley, 281-675-9107

Megan Larson, 281-675-9470

Beth Heller, 832-506-6831

Source: Murphy Oil Corporation

FAQ

How much net oil pay did Murphy Oil (MUR) discover at Hai Su Vang-1X well in Vietnam?

Murphy Oil discovered approximately 370 feet of net oil pay from two reservoirs at the Hai Su Vang-1X exploration well.

What is Murphy Oil's (MUR) working interest in the Vietnam Block 15-2/17?

Murphy Oil holds a 40% working interest in Block 15-2/17 through its subsidiary Murphy Cuu Long Tay Oil Co.,

Where is the Hai Su Vang-1X exploration well located?

The Hai Su Vang-1X exploration well is located in Block 15-2/17 in the Cuu Long Basin, 40 miles offshore Vietnam.

What are the next steps for Murphy Oil (MUR) at the Hai Su Vang discovery?

Murphy Oil will conduct additional evaluation and future appraisal drilling to assess the potential development of the Hai Su Vang field.

Who are Murphy Oil's (MUR) partners in the Vietnam Block 15-2/17?

Murphy Oil's partners are PetroVietnam Exploration Production with 35% working interest and SK Earthon Co., with 25%.