McMoRan Exploration Co. Updates In-Progress Exploration Activities in the Shallow Waters of the Gulf of Mexico
September 20 2010 - 7:30AM
Business Wire
McMoRan Exploration Co. (NYSE: MMR) today updated its shallow
water Gulf of Mexico exploration activities, including in-progress
drilling at the Blackbeard East and Davy Jones ultra-deep
prospects, the status of the Lafitte ultra-deep prospect and
confirmation of pay at the Blueberry Hill deep gas well by wireline
log.
The Blackbeard East ultra-deep exploration well commenced
drilling on March 8, 2010, and is currently drilling below 24,800
feet. Recent drilling results have indicated that the well
encountered several sands below 24,100 feet. The first sand was
identified by log-while-drilling (LWD) tools and indicated a
possible hydrocarbon bearing zone. The second sand was identified
by mud logs after the LWD tool failed at approximately 24,550 feet.
Wireline logs will be required to fully evaluate these sands.
The Blackbeard East well, which is located in 80 feet of water
on South Timbalier Block 144, has a proposed total depth of 29,950
feet and is targeting Middle and Deep Miocene objectives seen below
30,000 feet in Blackbeard West, nine miles away, as well as younger
Miocene objectives. McMoRan is funding 32.0 percent of the
exploratory costs and holds a 38.5 percent working interest and
30.7 percent net revenue interest. Other working interest owners in
Blackbeard East include: Plains Exploration & Production
Company (NYSE: PXP) (31.5%), Energy XXI (NASDAQ: EXXI) (18.0%),
W.A. "Tex" Moncrief, Jr. (10.0%) and a private investor (1.6%).
On April 7, 2010, McMoRan commenced drilling the Davy Jones
offset appraisal well on South Marsh Island Block 234, two and
a half miles southwest of the discovery well. The well has been
drilled to 15,125 feet and McMoRan is currently setting an 11 7/8
inch liner. The well has a proposed total depth of 29,950 feet. The
offset appraisal well (Davy Jones #2) is expected to test similar
sections up-dip to the discovery well, as well as deeper
objectives, including potential additional Wilcox and possibly
Cretaceous (Tuscaloosa) sections.
Davy Jones involves a large ultra-deep structure encompassing
four OCS lease blocks (20,000 acres). McMoRan is funding 28.7
percent of the drilling costs and holds a 32.7 percent working
interest and 25.9 percent net revenue interest. Other working
interest owners in Davy Jones include: PXP (27.7%), EXXI (15.8%),
Nippon Oil Exploration USA Limited (12%), W.A. "Tex" Moncrief, Jr.
(8.8%) and a private investor (3%).
McMoRan is currently moving a drilling rig to the Lafitte
ultra-deep location at Eugene Island Block 223 in 140 feet of
water, where it expects to receive a permit imminently from the
Bureau of Ocean Energy Management to commence drilling operations.
The well has a proposed total depth of 29,950 feet and will target
Middle and Deep Miocene objectives below the salt weld. McMoRan
holds a 40.5 percent working interest and 32.8 percent net revenue
interest in the prospect. Other working interest owners in Lafitte
include: PXP (31.5%), EXXI (18.0%), and W.A. "Tex" Moncrief, Jr.
(10.0%).
McMoRan also announced today that the Blueberry Hill
#9STK1 deep gas well located on Louisiana State Lease 340 in
approximately 10 feet of water has been drilled to a total vertical
depth of 24,200 feet and has been logged with wireline logs. The
wireline logs confirmed that the well encountered 105 net feet of
hydrocarbon bearing sands with exceptional porosity in the Miocene
as previously reported by LWD tools on August 3, 2010. McMoRan is
currently completing the well and is targeting first production in
the first quarter of 2011. McMoRan owns a 42.9 percent working
interest and a 29.7 percent net revenue interest in the Blueberry
Hill well. PXP holds a 47.9 percent working interest.
McMoRan Exploration Co. is an independent public company engaged
in the exploration, development and production of oil and natural
gas in the shallow waters of the GOM Shelf 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
forward-looking statements regarding various oil and gas
discoveries and oil and gas exploration. 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 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 results anticipated
by 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 potential adoption of new governmental
regulations; 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 2009 Annual Report on Form 10-K on
file with the Securities and Exchange Commission (SEC), as updated
by our subsequent filings with the SEC.
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