Murphy Oil produced over 204,000 boe/d in the second quarter and 135,000 b/d of production was attributable to oil & gas liquids. The liquids volume reported represents growth of more than 30% from the same period in 2012. It should be no surprise the company attributes much of its growth to the Eagle Ford.
Murphy estimates the Eagle Ford will account for a little less than 40,000 boe/d in 2013 and production could ultimately rise to as much as 100,000 boe/d over the next five years.
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“The increase in oil production in 2013 was primarily attributable to higher production in the Eagle Ford Shale area, where significant development drilling and completion operations are ongoing.”
Murphy Oil's Eagle Ford Drilling & Completion Costs Falling
[ic-l]Murphy reports improving costs in both the drilling and completion of Eagle Ford wells. Drilling costs per foot have fallen from $291 in 2010 to $169 (down 42%) in the first quarter of 2013. Simlarly, completion costs per lateral foot have fallen from $1,210 to $763 (down 35%) during the past three years.
Murphy's operating costs in the Eagle Ford have fallen from ~$35/boe to a little more than $20/boe today. The company expects operating costs will fall to approximately $15/boe by 2015.
Murphy Oil is in the process of spinning off its U.S. Retail business into a new company names Murphy USA. Murphy Oil will be a pure play E&P company when the transaction is completed at the end of August.
Read the full Q2 press release at murphyoilcorp.com