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8-K - MMR 1-11-10 8K - MCMORAN EXPLORATION CO /DE/ | mmr11110_8k.htm |
1615
Poydras St. ▪ New Orleans, LA 70112
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Financial
Contact:
|
Media
Contact:
|
David
P. Joint
|
William
L. Collier
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(504)
582-4203
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(504)
582-1750
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McMoRan
Exploration Co. Announces
Major
Discovery at Davy Jones Ultra-Deep Well
In
Shallow Water on the Shelf of the Gulf of Mexico
NEW
ORLEANS, LA, January 11, 2010 – McMoRan Exploration Co. (NYSE: MMR) announced
today a discovery on its Davy Jones ultra-deep prospect located on South Marsh
Island Block 230 in approximately 20 feet of water. The well has been
drilled to a measured depth of 28,263 feet and has been logged with
pipe-conveyed wireline logs to 28,134 feet. The wireline log results
indicated a total of 135 net feet of hydrocarbon bearing sands in four zones in
the Wilcox section of the Eocene/Paleocene. All of the zones were
full to base with two of the zones containing a combined 90 net
feet. The Eocene/Paleocene (Wilcox) suite of sands
logged below 27,300 feet appears to be of exceptional quality. Flow
testing will be required to confirm the ultimate hydrocarbon flow rates from the
four separate zones. The resistivity log obtained on January 10th was
the last data needed to confirm hydrocarbons in South Marsh Island Block
230.
McMoRan’s
Co-Chairman, James R. Moffett, said: “Davy Jones log results confirm our
geologic model and indicate that the previously identified sands in the Wilcox
section on this large ultra-deep structure encompassing four OCS lease blocks
(20,000 acres) provides significant additional development potential which, upon
confirmation development drilling, could make Davy Jones one of the largest
discoveries on the Shelf of the Gulf of Mexico in decades. The
geologic results from this well are important and are redefining the subsurface
geologic landscape below 20,000 feet on the Shelf of the Gulf of Mexico. The results from this
well will be incorporated into our models as we continue to define the potential
of this promising new exploration frontier.”
McMoRan
plans to deepen the well to 29,000 feet to test additional
objectives.
McMoRan
is one of the largest acreage holders on the Shelf of the Gulf of Mexico and
onshore in the Gulf Coast area with rights to approximately one million gross
acres including 150,000 gross acres associated with the ultra-deep gas play
below the salt weld. Prospects on this acreage have multi-Tcfe gross
unrisked potentials and target objective sections on the Shelf in the Miocene
and older age sections that have been correlated to those productive sections
seen in deepwater discoveries by other industry participants.
McMoRan
operates the Davy Jones prospect and is funding 25.7 percent of the exploratory
costs and holds a 32.7 percent working interest and 25.9 percent net revenue
interest. Other working interests owners in Davy Jones include:
Plains Exploration & Production Company (NYSE: PXP) (27.7%), Energy XXI
(NASDAQ: EXXI) (15.8%), Nippon Oil Exploration USA Limited (12%), W.A. "Tex"
Moncrief, Jr. (8.8%) and a private
investor (3%).
McMoRan
Exploration Co. is an independent public company engaged in the exploration,
development and production of oil and natural gas offshore in the Gulf of Mexico
and onshore in the Gulf Coast area. Additional information about
McMoRan is available on its internet website “www.mcmoran.com”.
-----------------------------------------------------
CAUTIONARY
STATEMENT: This press release contains certain
forward-looking statements regarding various oil and gas discoveries, oil and
gas exploration, development and production activities, capital expenditures,
and anticipated and potential production and flow rates. Accuracy of
these forward-looking statements depends on assumptions about events that change
over time and is thus susceptible to periodic change based on actual experience
and new developments. McMoRan cautions readers that it assumes no
obligation to update or publicly release any revisions to the forward-looking
statements in this press release and does not intend to update these statements
more frequently than quarterly. Important factors that might cause
future results to differ from these forward-looking statements include: adverse
conditions such as high temperature and pressure that could lead to mechanical
failures or increased costs; variations in the market prices of oil and natural
gas; drilling results; unanticipated fluctuations in flow rates of producing
wells; oil and natural gas reserves expectations; the ability to satisfy future
cash obligations and environmental costs; as well as other general exploration
and development risks and hazards. These and other factors are more
fully described in McMoRan’s 2008 Annual Report on Form 10-K on file with the
Securities and Exchange Commission (SEC), as updated by our subsequent filings
with the SEC.
The
SEC permits oil and gas companies in their filings with the SEC to disclose only
proved reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible under
existing economic and operating conditions. We use certain phrases and terms,
such as "gross unrisked potential” and “exploration potential," which the SEC's
guidelines strictly prohibit us from including in filings with the SEC. We urge
you to consider closely the disclosure of proved reserves included in McMoRan's
Annual Report on Form 10-K for the year ended December 31, 2008.
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