Mcmoran Explor Co Sc : McMoRan Exploration Co. Updates Exploration Activities Including Positive Results at Flatrock and Cottonwood Point and Development Activities at Blueberry Hill
07/03/2007| 09:09am US/Eastern
McMoRan Exploration Co. (NYSE: MMR) today updated its exploration and
development activities, including positive drilling results at Flatrock
and Cottonwood Point.
The Flatrock exploratory prospect at South Marsh Island Block 212
commenced on March 27, 2007, and is currently drilling below 15,000 feet
with a proposed total depth of 16,500 feet. Wireline logs have indicated
22 net feet of hydrocarbon bearing sands in the Rob-L section.
Casing has been set to protect this zone. Additionally,
log-while-drilling tools have indicated three more resistive zones
approximating 190 net feet over an approximate 330 foot gross interval.
These zones will be evaluated with wireline logs.
The Flatrock well is the first well drilled in the OCS 310/Louisiana
State Lease 340 area by McMoRan or others to encounter multiple apparent
hydrocarbon bearing sands in the Rob-L section, several of which
are above the well's primary objective. The
Flatrock prospect is three miles north and down dip of the Hurricane
discovery in South Marsh Island Block 223, indicating that the Flatrock Rob-L
hydrocarbon bearing zones must be structurally or stratigraphically
separated from the up dip Hurricane Rob-L production. This
information has significant implications in an area where McMoRan has a
number of additional drilling opportunities.
McMoRan plans to continue drilling the Flatrock well to evaluate
additional Rob-L and Operc objectives and may elect to
deepen the well below 16,500 feet. McMoRan has a 25.0 percent working
interest and an 18.8 percent net revenue interest in the Flatrock well.
If successful, the well could be brought on production quickly utilizing
existing infrastructure in the area. Flatrock would be McMoRan's
eighth successful well in the OCS 310/Louisiana State Lease 340 area.
The Cottonwood Point exploratory prospect at Vermilion Block 31
commenced on March 1, 2007, and is currently drilling below 14,400 feet
with a proposed total depth of 21,000 feet. Log-while-drilling tools
have indicated approximately 60 net feet of resistivity in three sands,
indicating the presence of potential hydrocarbons. The well will be
drilled to its next casing point and logged with wireline tools to
evaluate these potentially productive zones. McMoRan has a 15.0 percent
working interest and an 11.3 percent net revenue interest in the
Cottonwood Point well.
The Cas exploratory well at South Timbalier Block 70 commenced
drilling on January 30, 2007, and is drilling ahead with a planned true
vertical depth of 25,000 feet. The Cas prospect is located in
approximately 65 feet of water. McMoRan has rights to 5,000 gross acres
in this area. McMoRan has a 15.0 percent working interest and a 12.4
percent net revenue interest.
The Mound Point South exploratory prospect at Louisiana State
Lease 340 commenced on April 12, 2007, and is currently drilling below
16,000 feet with a proposed total depth of 20,000 feet. McMoRan has an
18.3 percent working interest and a 14.5 percent net revenue interest in
the Mound Point South well.
McMoRan also announced today that it has elected to sidetrack the Blueberry
Hill well at Louisiana State Lease 340. Attempts to clear the
blockage above the perforated interval were unsuccessful during June
2007. The sidetrack is targeting Gyro sands in a down dip
position believed to be better developed than the sands seen in the
original well. As previously reported, the Blueberry Hill well at
Louisiana State Lease 340 encountered four potentially productive
hydrocarbon bearing sands below 22,200 feet in February 2005. Testing of
this well commenced in the fourth quarter of 2006 following the receipt
of special tubulars and casing for the high pressure well.
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. McMoRan is
also pursuing plans for the development of the MPEH?
which will be used for the receipt and processing of liquefied natural
gas and the storage and distribution of natural gas. Additional
information about McMoRan and the MPEH?
project is available on its internet website ?www.mcmoran.com?
and at ?www.mpeh.com?.
CAUTIONARY STATEMENT: This press release contains certain
forward-looking statements about McMoRan's
exploration and development activities. When used in this
document, the words ?anticipates?
?to be? and any
similar expressions and any other statements that are not historical
facts are intended to identify those assertions as forward-looking
statements. In making any of those statements, McMoRan believes
that its expectations are based on reasonable assumptions. However,
any such statement may be influenced by factors that could cause actual
outcomes and results to be materially different from those projected or
anticipated. These forward-looking statements are subject to
numerous risks and uncertainties. There are various important factors
that could cause actual results to differ materially from those in any
such forward-looking statements, many of which are beyond the control of
McMoRan, including 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; general
exploration and development risks and hazards; and the ability to obtain
commercial arrangements for the potential Main Pass Energy Hub?
project. Such factors and others are more fully described in
more detail in McMoRan's 2006 Annual Report
on Form 10-K on file with the Securities and Exchange Commission.
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, except to the extent required by applicable law, does
not intend to update or otherwise revise these statements more
frequently than quarterly.
McMoRan Exploration Co.
P. Joint, 504-582-4203
L. Collier, 504-582-1750
© Business Wire 2007