Murphy Oil confirms downdip limits of Kikeh field off Malaysia

By OGJ editors

HOUSTON, May 17 -- Murphy Oil Corp. reported that its Kikeh No. 7 appraisal well has confirmed the downdip limits of Kikeh field on deepwater Block K off Sabah, Malaysia.

The well reached 14,899 ft TD in 4,217 ft of water. The well, which is the deepest penetration in this deepwater basin, has been abandoned and all costs capitalized, Murphy said.

"Additionally this well was deepened below known field pays and encountered oil in multiple sands previously undrilled [on] Block K," Murphy reported. Of the eight known oil reservoirs in the field, water limits have now been established in five, Murphy added.

Murphy said that this well has "opened up a completely new play" in the deep water off Sabah. "The oil we encountered in the deep section is higher gravity than the Kikeh oil and is contained in good quality rocks, Murphy said.

Murphy is targeting first oil from Kikeh field for fourth quarter 2007.

Operator Murphy holds an 80% working interest in Block K, which covers more than 4 million acres, while Petronas Carigali Sdn. Bhd. holds 20%.