Murphy said Hai Su Vang is one of multiple exploration prospects that it has identified in the basin. The company plans more evaluation and drilling. (Source: Shutterstock)
Murphy Oil Corp.’s oil discovery in Vietnam “should force a reset with investors,” KeyBanc Capital Markets analysts Tim Rezvan and Jonathan Mardini said in a note.
Murphy said Jan. 7 the find came from the Hai Su Vang-1X exploration well in Block 15-2/17 in the Cuu Long Basin, 40 miles offshore Vietnam. The well, drilled to total depth of 13,124 ft in 149 ft of water, found 370 ft of net oil pay from two reservoirs.
The discovery may lead to a reset in expectations for peak production in 2028 and adjustments to facility procurement plants, Rezvan and Mardini said.
“We view this release as an important reminder to investors of Murphy's exploration prowess, following weak share price performance in 2024,” the analysts said in reference to when Murphy fell 29% versus a 3% decline for the S&P Oil & Gas Exploration & Production Index.
Murphy said Hai Su Vang is one of multiple exploration prospects that it has identified in the basin. The company plans more evaluation and drilling.
Murphy’s subsidiary, Murphy Cuu Long Tay Oil Co., Ltd., is the operator of the block with 40% working interest. PetroVietnam Exploration Production Corp. Ltd. holds 35% and SK Earthon Co. Ltd. holds the remaining 25%.
The analysts reiterated their overweight rating on Murphy shares, which traded at $32.44 at 12:12 p.m. CT Jan. 8, up $0.81 on the day. After reaching $49.14 in April, they fell as low as $27.75 in December.
“Today's release reflects a high-class problem for Murphy—looking into potential facility adjustments to support a larger potential resource,” Rezvan and Mardini wrote.
Recommended Reading
NatGas in Storage Continues to Rise on Moderate Weather Conditions
2025-04-03 - The lower 48 U.S. states added 29 Bcf of natural gas to storage for the week ending March 28, slightly higher than market expectations between 25 Bcf to 27 Bcf.
Oil Dives More Than 6%, Steepest Fall in 3 Years on Tariffs, OPEC+ Supply Boost
2025-04-03 - Oil prices swooned on April 3 to settle with their steepest percentage loss since 2022, after OPEC+ agreed to a surprise increase in output the day after U.S. President Donald Trump announced sweeping new import tariffs.
Venture Global Gets Final Approval to Fully Open Calcasieu Pass LNG
2025-04-03 - Venture Global has FERC permission to put the remaining facilities at its Calcasieu Pass LNG plant into service, placing an unknown status on arbitration hearings with its long-term customers.
LNG Canada Receives Cooling Cargo, Signals Project Start-Up
2025-04-03 - LNG Canada expects to start exporting LNG by the middle of 2025.
Northwind’s Sour Expansion Adds Room for Delaware Development
2025-04-03 - Midstream company Northwind Midstream expects to see treatment demand rise in Lea County, New Mexico, as Tier 1 plays mature and E&Ps look elsewhere to expand.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.