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Murphy Oil Announces Second Successful Appraisal of the Deepwater Kikeh Discovery


EL DORADO, Ark.--(BUSINESS WIRE)--Nov. 25, 2002--Murphy Oil Corporation (NYSE:MUR) announced today that the Kikeh #3 well successfully appraised the previously announced Kikeh oil discovery drilled in Block K, offshore Sabah Malaysia.

"The results from the Kikeh #3 well and the subsequent updip sidetrack are excellent and confirm the Kikeh Field as a very significant oil discovery. Our preliminary estimates put recoverable reserves in the range of 400 to 700 million barrels" says Claiborne P. Deming, Murphy Oil President and Chief Executive Officer. "Kikeh #3 was drilled almost two miles from the Kikeh #2 appraisal well and almost three miles from the Kikeh #1 discovery well. Wire line electric logs and pressure measurements confirm reservoir connectivity between all three wells. As expected we did not find any gas in the updip sidetrack and have yet to define the down dip oil limits to this field," he added.

"Our current plans are to release the rig and prepare for a very active exploration and appraisal program on Block K and the adjoining Block H that should kick off before mid-year 2003. We plan to drill at least one more appraisal well at Kikeh, where we will cut full hole cores over key intervals and conduct a flow test program, all aimed at moving this field towards development sanction as soon as possible," says Deming.

Located in almost 4,400 feet of water, the Kikeh Field lies in the southern part of Block K. Murphy, as operator, has an 80% working interest in Blocks K and H, which combined cover over six million acres. Petronas Carigali Sdn Bhd, a wholly owned exploration and production arm of Petronas, holds the remaining 20%.

The forward-looking statements reflected in this release are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. No assurance can be given that the results discussed herein will be attained, and certain important factors that may cause actual results to differ materially are contained in Murphy's January 15, 1997 Form 8-K report on file with the U.S. Securities and Exchange Commission.


CONTACT: Murphy Oil Corp., El Dorado
Investor Relations: Mindy West, 870/864-6315
Public Relations: Betty LeBrescu, 870/864-6222

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