Nicky Low put Kelty ahead from the spot, but Tommy Goss equalised for Annan with the second penalty of the game to net his tenth of the season. But Annan hearts were then broken by the league one opposition in extra when Jamie Barjonas sent Kelty through with virtually the last kick of the ball.
Murphy, said: “Obviously I’m disappointed to concede in the last minute of the game, but I thought we did really well.
“It looked like it was going to be 1-1, but I think we got sucked in near the end.
“To concede a goal in the way we did wasn’t very good, we let a man run across the back post.
“I’m delighted with the way that the players acquitted themselves, especially in the shape that we played tonight.
“Tommy Muir was absolutely excellent, he got man of the match and then he decided to come off just after.
“He’s giving me a headache in defence and a headache going forward.
“Chris Johnston was also excellent when he got on the ball.
“I thought Kelty Hearts were a bit surprised at how we played tonight, which is testament to ourselves, they had to change their shape to a 4-4-2.
“We have got a long trip up to Elgin on Saturday and on their day they can score goals, they’ve got (Kane) Hester who is always in with the top scorers.
“Its going to be a tough day out, but I’m pretty confident with my players after how they played tonight.”
Meanwhile, Annan have been drawn away to Pollok in the Scottish Cup second round, and the BBC cameras will be in attendance at the match which has been rescheduled for Monday October 24 at 7.45 pm.
The West of Scotland Premier League side will provide stern opposition and they will be looking to cause an upset in front of a full house and the television cameras.
But Annan dealt well with a similar tie last season in the competition against Clydebank. An Iain Anderson winner deep into extra time made it 3-2 and sent the Galabankies through. The victory then set up a dream draw at home against Glasgow giants Rangers FC in the following round.