Murphy’s exploration and production business, directed by the management team in Houston, Texas, explores for and produces crude oil, natural gas and natural gas liquids worldwide. The Company’s production comes from the United States, Canada, Malaysia, the United Kingdom and Republic of the Congo.

Our global exploration program targets 12+ impactful oil and gas prospects annually in at least 10 countries around the world. This program is complemented by an oil-weighted North American resource portfolio that includes oil plays at Seal Lake and Southern Alberta in Canada and the Eagle Ford Shale in South Texas and our Montney natural gas development in N.E. British Columbia, Canada.

Production in 2010 averaged 186,400 barrels of oil equivalent per day (boepd), an increase of 16% over 2009 levels. This follows a 28% increase from 2008 to 2009. This year on year growth profile combined with replacement of reserves at well over 100% (124% in 2010) of annual production is a challenging feat that we continue to achieve. Production of oil, natural gas and natural gas liquids is expected to reach 200,000 boepd in 2011 and development of our existing discoveries is anticipated to continue the growth in production to 300,000 boepd by 2015.

Murphy’s principal exploration and production activities are conducted in the United States by wholly owned Murphy Exploration & Production Company – USA (Murphy Expro USA), in Malaysia, Republic of the Congo, Indonesia, Suriname, Australia, Brunei and the Kurdistan region of Iraq by wholly owned Murphy Exploration & Production Company – International (Murphy Expro International) and its subsidiaries, in Western Canada and offshore Eastern Canada by wholly owned Murphy Oil Company Ltd. (MOCL) and its subsidiaries, and in the U.K. North Sea by wholly owned Murphy Petroleum Limited. MOCL owns a 5% undivided interest in Syncrude Canada Ltd. in northern Alberta, one of the world’s largest producers of synthetic crude oil.