Exploration and Production Operations
Murphy Oil Company Ltd. is engaged in crude oil and natural gas exploration and production in Western Canada and offshore Eastern Canada as well as the extraction and sale of synthetic crude oil from Alberta’s oil sands.
Murphy operates three resource plays in Western Canada:
In the Montney tight gas resource play, Murphy holds over 150,000 net acres of land in N.E. British Columbia. First production of natural gas occurred at our Tupper Main facility in December 2008 where the plant capacity is 105 million cubic feet per day (mmcfd). The Tupper West project, sanctioned in August 2009, has a plant capacity of 180 mmcfd and achieved first production of natural gas in February 2011.
At the Seal heavy oil project in Northern Alberta Murphy has over 330,000 net acres of land. The Company operates primary production from horizontal wells and is progressing its Enhanced Oil Recovery (EOR) projects in the area with both polymer flooding and thermal recovery.
During 2010, the Company added approximately 150,000 net acres of land in Southern Alberta in the emerging Alberta Bakken shale light oil resource play. We continue to evaluate our acreage position.
In addition Murphy holds approximately 170,000 net acres in the Muskwa shale play in northern Alberta.
The Company also owns an interest in three significant non-operated assets that provide a solid production base of 24,000 net bpd. Hibernia (6.5%) and Terra Nova (10.475%) are located in the Jeanne d’Arc Basin offshore Newfoundland and the Syncrude Canada Ltd. (5%) operation, located north of Ft. McMurray, Alberta, which extracts bitumen from oil sands and upgrades it to light synthetic crude oil.