Area Drilling

MalaysiaMurphy Oil Corp., El Dorado, Ark., reported the first deepwater oil discovery off Malaysia and planned to move the rig immediately to drill an appraisal well. The well on the Kikeh prospect in almost 4,400 ft of water on southern Block K off Sabah encountered several hundred feet of high quality oil reservoirs. Murphy called the discovery "significant" and said the structure covers a large area. Murphy is operator and holds 80% interest in 6 million acres on blocks K and H. Malaysia's Petronas holds the other 20% interest. Murphy's holding in Block H is a farmout from Esso Exploration & Production Sabah Ltd., an ExxonMobil Corp. unit. Murphy added, "We believe that the off...

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