Murphy to drill appraisal well at Bubale discovery offshore Ivory Coast

Murphy Oil has deemed its Bubale-1X exploration well offshore Cote d'Ivoire a commercial discovery and plans to drill an appraisal well within three months to test the extent of the find, CEO Eric Hambly said June 23.

The discovery encountered oil in two stacked reservoirs — Turonian and Cenomanian — and early results indicate light oil with moderate gas-oil ratios, Hambly said at the JP Morgan Natural Resources Conference.

The company had previously estimated the prospect held 340 million to 850 million barrels of oil equivalent on a gross basis, and Hambly said Murphy is not yet updating that range.

In a statement on its website, the US company said its Bubale-1X exploration well had encountered 30 meters of net oil pay across the two reservoirs.

"We're happy with what we found. We think we found at least a minimal threshold to have a commercial development, and we're moving right away to appraise," Hambly said. "The potential outcomes, in terms of resources, still very broad."

Murphy drilled the Bubale-1X well in the upper part of the structure, leaving significant potential volume down dip, Hambly said. The company expects to complete the current well operations within a week and then move immediately to drill the Bubale-2X appraisal well, which will test either the Cenomanian or Turonian reservoir down dip.

The well was drilled in 2,376 meters of water in Block CI-709, some 64 km off the coast of the West African country, Murphy said. It was spud in late February.

The first two wells in the campaign -- Civette-1X and Caracal-1X -- were deemed non-commercial, the company said previously.

The country has become a significant West African producer thanks to Eni's huge Baleine oil and gas development, which came online in 2023, just two years after discovery. Following that, it has witnessed new discoveries, exploration deals, and IOC entries. Success in the country has even spurred additional exploration activity in neighboring countries.

Baleine crude, which forms the bulk of Cote d'Ivoire's oil exports, is light sweet, with an API of around 40 degrees, and finds buyers in Ghana, Italy, and Indonesia, according to data from S&P Global Commodities at Sea.

Murphy, which has assets across the US, Canada, Vietnam, and the Ivory Coast, pumped 182,294 boe/d of oil and gas in 2025.

Appraisal program

The appraisal well is expected to take less than three months to complete, with results likely in the third or fourth quarter, Hambly said. Following that well, the rig will leave to work for another operator in Australia, and Murphy will likely return in 2027 with additional appraisal activity.

"We look and think it's likely that in addition to the discovery well, you may need three to five appraisal wells to fully understand the resource size," Hambly said.

Murphy spent significantly more than initially budgeted on the Bubale-1X well due to extensive evaluation work after encountering hydrocarbons.

The well cost will be around $140 million, compared with an initial estimate of $65 million, Hambly said. The company expects to provide updated capital expenditure guidance for 2026 on its second-quarter earnings call Aug. 2.

The most likely development scenario for Bubale is an FPSO with a gas pipeline to shore, Hambly said. Oil would be processed and stored on the FPSO for offtake by trading tankers, while gas would feed the domestic market. Murphy estimates a timeline of roughly five to six years from discovery to first oil.

The Bubale discovery could also enable development of Murphy's nearby Peon discovery, which has a large gas cap. A gas pipeline from Bubale would pass by Peon, potentially making that field commercial by combining gas resources and lowering the required gas price, Hambly said.

Murphy has a 90% stake in Block CI-709, alongside state-run Petroci with 10%. Hambly said the company will likely continue the appraisal program and potentially develop the field at that ownership level, though an extremely large resource could require farm-down to fund development.