HOUSTON - Murphy Oil Corporation (NYSE: NYSE:MUR) has made a significant oil discovery at the Hai Su Vang-1X exploration well in offshore Vietnam, the company announced today. The exploration well, located in Block 15-2/17 of the Cuu Long Basin, 40 miles offshore, reached a total depth of 13,124 feet in waters 149 feet deep and encountered approximately 370 feet of net oil pay across two reservoirs. The company, currently valued at $4.6 billion with a healthy 72% gross profit margin, has shown strong operational execution according to InvestingPro analysis.
While additional evaluation is currently underway, the company has indicated that future appraisal drilling will be conducted to further assess the potential of the find. This discovery at Hai Su Vang is part of several prospects identified by Murphy in the basin, which could lead to the development of the Hai Su Vang field. With an EBITDA of $1.7 billion in the last twelve months and a strong financial health score rated as GOOD by InvestingPro, Murphy Oil appears well-positioned to develop this new asset.
Murphy's subsidiary, Murphy Cuu Long Tay Oil Co., Ltd., operates the block with a 40 percent working interest. Partners include PetroVietnam Exploration Production Corporation Ltd. with a 35 percent interest and SK Earthon Co., Ltd. with the remaining 25 percent.
Eric M. Hambly, President and Chief Executive Officer of Murphy Oil, expressed satisfaction with the successful drilling results, stating, "This discovery adds further upside to our current Vietnam business." He added that the company looks forward to continued collaboration with its partners as they proceed with the evaluation process.
Murphy Oil Corporation is an independent exploration and production company focused on providing energy solutions. The company has maintained dividend payments for 54 consecutive years and currently offers a 3.9% dividend yield, demonstrating its commitment to shareholder returns. The company prides itself on its commitment to ethical practices and innovative energy strategies, aiming to be a positive influence in the industry for the next century and beyond. For detailed analysis and additional insights, including 8 more exclusive ProTips, visit InvestingPro, where you can access comprehensive research reports and expert financial analysis.
The information provided in this article is based on a press release statement from Murphy Oil Corporation.
In other recent news, Murphy Oil Corporation has announced a series of significant developments. The company reported a strong Q3 2024 performance, with a production rate of 185,000 barrels of oil equivalent per day and a net income of $139 million. Additionally, Murphy Oil returned capital to shareholders through a $194 million stock repurchase.
The company also revealed plans for partial redemption of its senior notes due in 2027, amounting to $79 million. Furthermore, there has been a leadership transition with the retirement of current CEO, Roger W. Jenkins, and the appointment of Eric M. Hambly as the new CEO, starting January 1, 2025.
In terms of analyst ratings, JPMorgan (NYSE:JPM) maintained a neutral rating on the company while adjusting the price target from $40 to $37. Murphy Oil's ongoing operations include a two-well exploration program in Vietnam and the construction of the Lac Duc Vang field platform, expected to add 10 to 15 thousand barrels of oil per day to the company's net volumes. The company's future production guidance indicates a range between 181,500 and 189,500 barrels of oil equivalent per day for Q4. These recent developments highlight Murphy Oil's commitment to operational excellence, strategic growth, and shareholder returns.
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