Murphy Oil Corporation makes announcement.

EL DORADO, Ark.--(BUSINESS WIRE)--Dec. 20, 1994--Murphy Oil Corporation (NYSE: MUR) announces that its wholly owned Canadian subsidiary, Murphy Oil Company Ltd., has acquired the working interests of Gulf Canada Resources Limited in four leases in the Terra Nova oil field.

The purchased working interests represent a 10.7-percent share in the agreement that governs operations at Terra Nova prior to field development.

Terra Nova is located in about 300 feet of water in the Jeanne D'Arc Basin off the eastern coast of Canada and is approximately 20 miles southeast of the Hibernia oil field, where Murphy has a 6.5-percent working interest. Hibernia is expected to be on production in late 1997, and Terra Nova will be the next field in the basin to be developed and placed on stream. The development plans under consideration by the owners incorporate the latest advancements in floating production systems, utilizing subsea completed wells produced to a floating rather than fixed platform. As a result of these new capital-efficient techniques, Terra Nova development cost should be considerably less, and its proximity to Hibernia will allow for cost efficiencies in ongoing operations.

Terra Nova was discovered in 1984 and has been delineated by eight additional wells and two 3-D seismic surveys. Gross oil in place for Terra Nova is estimated at more than one billion barrels, with recoverable reserves in the range of 300-400 million barrels. In addition, there is undrilled acreage on the east side of the field that could contain additional recoverable reserves. Depending upon the specific floating production system selected, production is expected to start up in five to seven years and peak at 75,000 to 100,000 barrels per day.

Murphy's President and Chief Executive Officer, Claiborne P. Deming, said, "We are pleased with the addition of Terra Nova to our portfolio of properties that will have a significant impact on Murphy Oil and its shareholders into the next century. This acquisition, along with the recently announced discovery of Schiehallion (17.65-percent working interest) in the West of Shetland waters of the United Kingdom, are further evidence of our determination to increase the size of our Company in a cost-efficient manner and will further add to our growing oil production profile. In Canada alone, we are an owner in the largest single source of light crude oil production, with a five-percent interest in Syncrude, and by owning an interest in Hibernia and Terra Nova, we have also become an owner in what will be the second and third largest sources. We look forward to working with the other Terra Nova partners to bring the field on in as cost-efficient and timely manner as possible."

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                   Background Notes for Terra Nova


1.  The Jeanne D'Arc basin is located some 200 miles east of
    Newfoundland, Canada.  Deposits of oil have been
    discovered in 13 fields, the largest two fields being
    Hibernia and Terra Nova.  These 13 discoveries contain
    recoverable reserves of about 1.6 billion barrels.  Some
    of the other fields identified are Nautilus, Mara,
    Hebron, Ben Nevis, West Ben Nevis and Whiterose.  As the
    infrastructure is put into place with the development of
    Hibernia and Terra Nova, this should facilitate the
    development of the other fields.  The United Kingdom
    offshore operations is an instructive analog.

2.  Oil was discovered in the Jurassic Jeanne D'Arc formation
    at Terra Nova in 1984 with the drilling of the well
    PETRO-CANADA ET AL TERRA NOVA K-08.  The well was drilled
    to a total depth of 14,764 feet.  It contained 197 feet of
    net pay and was tested at 10,000 barrels per day.

3.  The Terra Nova field has been delineated with two
    overlapping 3-D seismic surveys shot in 1984 and 1988.
    The data quality of the surveys is graded good to very
    good.  Further delineation occurred with the drilling of
    eight additional wells.

4.  Areal extent of Terra Nova ia 9,637 acres.  The oil column
    is approximately 1,500 feet thick, with gross pay zone
    thicknesses ranging from 85 feet to 702 feet with an
    average of 348 feet.  Original oil-in-place reserves are
    estimated at more than one billion barrels (one barrel
    equals 42 U.S. gallons) with recoverable reserve in the
    range of 300-400 million barrels.

5.  There is undrilled acreage on the east side of Terra Nova
    which could contain additional recoverable reserves.

6.  Oil quality is sweet, low-sulfur, 35 degrees API gravity
    (American Petroleum Institute standard measurement),
    paraffinic oil, very similar to the quality of oil that
    will be produced from Hibernia.

7.  The various ownership interests in Terra Nova are being
    held by Significant Discovery Licenses issued by the
    Canada-Newfoundland Offshore Petroleum Board (CNOPB) under
    the authority of the Canada-Newfoundland Atlantic Accord
    Implementation Act.  The field will be unitized under the
    supervision of the CNOPB.

8.  Owners have executed a Terra Nova Pre-Development
    Agreement which provides a mechanism to conduct
    preliminary engineering, prepare a development plan
    application and obtain regulatory approval.  Current
    participants in the Terra Nova Pre-Development Agreement
    are:

                                               Percentage
             Petro-Canada - Operator                49.2
             Mobil Oil Canada Properties            20.7
             Husky Oil Operations Ltd.              15.8
             Murphy Oil Company Ltd.                10.7
             Mosbacher Operating Ltd.                3.6
                                                   100.0

CONTACT: Murphy Oil Corporation, El Dorado

              Ronald W. Herman, 501/862-6411 (U.S.A)
              G. Carl Thompson, 403/294-8000 (Canada)