Murphy has production of oil and/or natural gas from six operated fields and five non-operated fields. The U.S. producing fields include eight in the deepwater Gulf of Mexico (GOM), two onshore in Louisiana, and the Eagle Ford Shale area of South Texas.

In the Gulf of Mexico, Murphy operates: Thunder Hawk (37.5%) in Mississippi Canyon Block 734; Medusa (60%) in Mississippi Canyon Blocks 538/582; and Frontrunner (37.5%) in Green Canyon Blocks 338/339/382/383. Non-operated fields include: Habanero (33.75%); Mondo (50%); and Tahoe (30%). The Company holds a total of 173 leases in the GOM with plans to drill up to 4 exploration wells in 2012, and are actively managing our portfolio to generate additional prospects to drill. Total production from the deepwater GOM was 26,923 barrels of oil equivalent per day (boepd) in 2010 and is targeted to be in the range of 23,000 boepd in 2011.

Onshore, the Company has accumulated over 220,000 net acres in the Eagle Ford Shale play of South Texas since entering the play in 2009. Appraisal work has been very encouraging and development activities are proceeding. The play is divided into 4 distinct operational areas: Karnes, Tilden and Catarina all in the oil window of the play and Nueces, located in the dry gas area. The first oil development in Karnes was sanctioned in December 2010. Plans include sanctioning oil developments in Tilden and Catarina later in 2011 with development of the dry gas region at Nueces to follow. In conjunction with development activities in the area, pipeline and trucking infrastructure to provide additional take away capacity is moving forward to meet the needs of growing production from the region.