Murphy Oil Cuts Budget by 73% in 2016
Murphy Oil Corporation (NYSE: MUR) has cut 2016 capex once again down 30% from the initial budget of $825 million, a decrease of ~73% below 2015 spending. MUR is forecasting an increase in production from 111 MBoepd in 2015 to 180 to 185 MBoepd in 2016.
90% of Remaining Eagle Ford Locations Break-Even Below $40.50 per Bbl
- Spending in the Eagle Ford has decreased by 75% from 2015 to $203 million
- 55% of 2015 onshore production came from the Eagle Ford
- 20 wells planned for 2016
- 34 wells still left uncompleted
- Aiming for D&C costs of just over $4 million per well in 2016
Longer Laterals and Higher Proppant Doesn’t Mean Better Wells
- Murphy is using FTSI for 82% of their frac jobs in the basin since the start of 2015
- Laterals of 8,000 feet and longer have not seen increased well performance
- Karnes and Mc Mullen counties have seen the best IP rates
Below is a chart showing the relationship between proppant amount (y-axis), lateral length (x-axis), IP Boe rates (radius) and county (color) by well for completed wells since April of 2015.