Murphy Oil Corp. (NYSE:MUR) is one of the 10 Must-Watch Stocks Right Now.
Murphy Oil rallied to a new 52-week high on Friday, as investors snapped up shares after an investment firm upgraded its rating and price target by 21 percent on optimism for its ongoing oil drilling program in Vietnam.
At intra-day trading, the stock soared to a record high of $36.90 before paring gains to finish the session just up by 6.02 percent at $36.81 apiece.
In a market note during the day, Piper Sandler raised Murphy Oil Corp. to “overweight” from “neutral,” and boosted its price target to $41 from $33 previously.
The coverage reflected its optimism that Murphy Oil Corp. would be able to find more oil sources at the Hai Su Vang (HSV) field in the Cuu Long Basin, which could serve as a huge catalyst for the company in the first half of the year.
Murphy Oil Corp. is currently underway with the drilling of the HSV project to measure the field’s size and commercial potential under what it calls the appraisal stage, a necessary step before it can proceed with full commercial operations.
Initial discovery in October last year showed that the HSV project had approximately 370 feet of net oil pay across two reservoirs. During the first appraisal stage, drilling registered 429 feet of net oil pay across the two reservoirs.
Two more appraisal programs, HSV-3x and HSV-4x, are slated for this year.
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