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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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