McMoRan Exploration Co. Announces Major Discovery at Davy Jones Ultra-Deep Well In Shallow Water on the Shelf of the Gulf of ...
January 11 2010 - 8:00AM
Business Wire
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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