Though additional wells need to be drilled before the total proved reserves are accurately measured, Murphy Oil Co. announced Thursday that its Front Runner South prospect in Green Canyon Block 339 offshore Louisiana has exceeded expectations. The reserve estimate is expected to be more than the pre-drill projection of 40-60 MMboe.

The discovery well was drilled to a total depth of 21,359 feet, at a total vertical depth of 20,072 feet, and encountered more than 400 net feet of hydrocarbons in two zones.

Murphy, headquartered in El Dorado, AR, owns a 37.5% interest in the discovery and serves as operator, while Dominion Exploration and Production Corp. Inc., headquartered in New Orleans, has a 37.5% stake and Houston-based Spinnaker Exploration Co. holds a 25% interest. The Front Runner partnership has 13 contiguous blocks under lease on which several drillable prospects have been identified, Murphy said.

What makes the discovery even more important, according to analysts with Dain Rauscher Wessels, is that it could lead to even more discoveries in the area. Analysts John F. Myers and Aaron R. Stanley noted that the discovery is important because “the sands were thicker than expected. Notably, this discovery sets up at least four more geologic look-alike prospects in the surrounding blocks.”

Now, several appraisal options are being considered while its rig, which was moved to a shipyard, is being upgraded. When the upgrades are completed, the rig will begin drilling an appraisal well on the western edge of the prospect, and the project could be sanctioned when the next well is drilled.

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