Freeport-McMoRan Inc. (NYSE:FCX) announced today positive
drilling results from the Freeport-McMoRan Oil & Gas (FM
O&G) 100-percent-owned Horn Mountain Deep well in the Deepwater
Gulf of Mexico (GOM). Initial production from this well, which will
be tied back to existing facilities, is expected in first half
2017. This well, combined with two follow on development wells at
Horn Mountain Deep, may be capable of producing an aggregate of
30,000 barrels of oil equivalents per day (BOE/d).
During September 2015, the Horn Mountain Deep well was drilled
to a total depth of approximately 16,925 feet. Logging while
drilling logs indicated that the well encountered a total of
approximately 142 net feet of Middle Miocene oil pay with excellent
reservoir characteristics. In addition, these results indicate the
presence of sand sections deeper than known pay sections in the
field. The 100-percent-owned Horn Mountain production facilities in
FM O&G’s Mississippi Canyon area are capable of processing 75
MBbls of oil per day. The positive results at Horn Mountain Deep
and our geophysical data support the existence of prolific Middle
Miocene reservoir potential for several additional opportunities in
the area, including the 100-percent-owned Sugar, Rose, Fiesta,
Platinum and Peach prospects. FM O&G controls rights to over
55,000 acres associated with these prospects.
Since commencing development activities in 2014 at its three
100-percent-owned production platforms in the Deepwater GOM, FM
O&G has drilled 12 wells, all with positive results. Three of
these wells have been brought on production, and FM O&G plans
to complete and place the remaining additional wells on production
in late 2015, 2016 and 2017.
The success at Horn Mountain Deep follows the positive drilling
results announced in July 2015 from three wells drilled in the Horn
Mountain area, including the Quebec/Victory (QV), Kilo/Oscar (KO)
and Horn Mountain Updip tieback prospects. In aggregate, these
wells may be capable of producing over 27,000 BOE/d, with initial
production expected in mid-year 2016.
Also during the third quarter of 2015, FM O&G drilled its
second successful development well at its 100-percent-owned King
field, located in Mississippi Canyon south of the 100-percent-owned
Marlin facility in 5,200 feet of water. A third development well is
in progress. In aggregate, these wells may be capable of producing
20,000 BOE/d, with initial production expected to commence in the
fourth quarter of 2015. FM O&G’s Marlin production facilities
in the Mississippi Canyon focus area are capable of processing 60
MBbls of oil per day.
Completion activities of the previously drilled three well
program at the 100-percent-owned Holstein Deep field are
progressing on schedule with first production expected by mid-year
2016. In aggregate, the three wells are estimated to commence
production at approximately 24,000 BOE/d. A fourth well is being
planned as part of the second phase of the Holstein Deep program.
FM O&G’s Holstein production facilities in the Green Canyon
focus area are capable of processing 113 MBbls of oil per day.
FM O&G will continue the successful strategy to focus on its
high return, low-risk tieback projects using its existing Deepwater
GOM infrastructure (total processing capacity of approximately 250
MBbls of oil per day) and large Deepwater GOM project inventory
(over 150 undeveloped locations). FM O&G will carefully
managing capital during this challenging market environment.
FCX is a premier U.S.-based natural resources company with an
industry-leading global portfolio of mineral assets, significant
oil and gas resources and a growing production profile. FCX is the
world's largest publicly traded copper producer.
FCX's portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world's largest copper and gold
deposits; significant mining operations in the Americas, including
the large-scale Morenci minerals district in North America and the
Cerro Verde operation in South America; the Tenke Fungurume
minerals district in the DRC; and significant U.S. oil and natural
gas assets in the Deepwater GOM, onshore and offshore California
and in the Haynesville natural gas shale, and a position in the
Inboard Lower Tertiary/Cretaceous natural gas trend onshore in
South Louisiana.
Cautionary Statement Regarding Forward-Looking
Statements: This press release contains forward-looking
statements, which are all statements other than statements of
historical facts, such as statements regarding expectations
relating to development and production activities, production
volumes and capital expenditures. The words “anticipates,” “may,”
“can,” “plans,” “believes,” "potential," “estimates,” “expects,”
“projects”, "targets," “intends,” “likely,” “will,” “should,” “to
be,” and any similar expressions are intended to identify those
assertions as forward-looking statements. We caution readers that
those statements are not guarantees of future performance and
actual results may differ materially from those anticipated,
projected or assumed in the forward-looking statements. In
particular, on August 5, 2015, we announced revisions to its oil
and gas capital expenditure and production outlook and on August
27, 2015, we announced revisions to our mining operations capital
expenditure and production outlook.
Important factors that can cause our actual results to differ
materially from those anticipated in the forward-looking statements
include supply of and demand for, and prices of, copper, gold,
molybdenum, cobalt, crude oil and natural gas, mine sequencing,
production rates, industry risks, regulatory changes, political
risks, drilling results, potential additional oil and gas property
impairment charges, potential lower of cost or market inventory
adjustments, potential impairment of long-lived mining assets, our
ability to complete transactions with strategic investors
interested in investing capital in the development of our oil and
gas and mining properties, our ability to launch or complete the
previously announced potential initial public offering of a
minority interest in Freeport-McMoRan Oil & Gas Inc. on
acceptable terms or at all, the outcome of negotiations with the
Indonesian government regarding PT Freeport Indonesia’s Contract of
Work, PT Freeport Indonesia’s ability to obtain renewal of its
export license after January 28, 2016, PT Freeport Indonesia’s
ability to renew its bi-annual labor agreement expiring in
September 2015, the potential effects of violence in Indonesia, the
resolution of administrative disputes in the Democratic Republic of
Congo, weather- and climate-related risks, labor relations,
environmental risks, litigation results and other factors described
in more detail in Part I, Item 1A. “Risk Factors” of our annual
report on Form 10-K for the year ended December 31, 2014, as
updated by our subsequent filings with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20150928005754/en/
Freeport-McMoRan Inc.Financial Relations:Kathleen L. Quirk,
602-366-8016orDavid P. Joint, 504-582-4203orMedia Relations:Eric E.
Kinneberg, 602-366-7994
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