McMoRan Successfully Tests Long Point Discovery

McMoRan Exploration Co. reports a successful production test on the Long Point discovery on Louisiana State Lease 18090, located onshore in Vermilion Parish, Louisiana. The production test indicated a gross flow rate of approximately 41 million cubic feet of natural gas per day (MMcf/d) and 860 barrels of condensate per day (total of approximately 46 MMcfe/d, 12 MMcfe/d net to McMoRan) on a 29/64ths choke with flowing tubing pressure of 10,200 pounds per square inch. Infrastructure near this onshore location in inland waters would allow production to be established quickly, currently expected in early 2006. Following completion activities, McMoRan expects to commence drilling the Long Point No. 2 development well.

As previously reported, the Long Point exploratory well was drilled to 19,000 feet in October 2005. The well was evaluated with log-while-drilling tools and wireline logs, indicating an interval approximating 150 gross feet of hydrocarbon bearing sands with excellent porosity. McMoRan acquired rights to 5,000 gross acres comprising the Long Point prospect from El Paso Production Company, a subsidiary of El Paso Corporation, in June of 2005 as part of a package of six deep-gas exploratory prospects covering approximately 18,000 gross acres onshore and in state waters in Vermilion Parish, Louisiana. McMoRan owns a 37.5 percent working interest and a 26.8 percent net revenue interest in the Long Point well.

McMoRan also reported a successful production test at the King Kong No. 2 well at Vermilion Block 16/17. The production test indicated a gross flow rate of approximately 8 MMcf/d, approximately 24 barrels of condensate per day and zero barrels of water (total of approximately 8.1 MMcfe/d, 2.3 MMcfe/d net to McMoRan) on a 16/64ths choke.

As previously reported, the King Kong No. 2 development well at Vermilion Blocks 16/17 was drilled to a total depth of 13,680 feet in October 2005. McMoRan expects to establish production in the fourth quarter from the King Kong No. 1 well (which was tested in August 2005 at a gross rate of approximately 42 MMcfe/d, 12 MMcfe/d net to McMoRan), and commence production at the No. 2 well shortly thereafter. A rig is on location to begin drilling of the King Kong No. 3 development well. McMoRan has a 40.0 percent working interest and a 29.2 percent net revenue interest in the King Kong prospect, which is located in 12 feet of water. McMoRan is the operator and has rights to approximately 2,500 gross acres in the area.

McMoRan also reported that substantially all of its production affected by Hurricanes Katrina and Rita has been restored, including oil production from Main Pass Block 299. McMoRan's share of production currently approximates 57 MMcfe/d including 3,300 bbls/d (20 MMcfe/d) from Main Pass Block 299. McMoRan expects production to increase to 60-70 MMcfe/d by the end of 2005 and average 30-40 MMcfe/d for the fourth quarter of 2005. First-quarter 2006 production is expected to benefit from full rates at McMoRan's producing fields and new production from recent discoveries, including King Kong, West Cameron Block 43 and Long Point.


                               Net             Proposed
                   Working   Revenue  Current    Total
                  Interest  Interest   Depth     Depth    Spud Date
South Marsh Island
 Block 224
"JB Mountain                                               July 14,
 Deep"(a)            27.5%     19.4%  20,950'    23,000'     2005
Louisiana State
 Lease 18055                                               July 29,
"Cane Ridge"         37.5%     27.5%  13,200'    16,500'     2005
South Marsh Island 
 Block 230                                               September 16,
 "Elizabeth"(a)      15.0%     11.3%  12,300'    20,000'     2005
West Cameron
 Block 95                                                October 15,
"Cabin Creek"(a)     37.5%     31.0%  10,900'    18,500'     2005
Louisiana State
 Lease 18350                                             November 18,
"Point Chevreuil"    25.0%     17.5%     750'    17,000'     2005
South Marsh Island 
 Block 217                                                August 21,
 "Hurricane No. 2"   27.5%     19.4%   9,300'    16,000'     2005
 Blocks 16/17                          On                  November
"King Kong No. 3"    40.0%     29.2% Location    15,800'     2005
Near-Term Well(b)
Onshore Vermilion
 Parish, LA                                              First-Quarter
"Liberty Canal"      37.5%     27.7%      n/a    16,000'      2006

(a) Depending upon applicability of the Deep Gas Royalty Relief
eligibility criteria, the leases on which these wells are located
could be eligible for royalty relief up to 25 Bcf under current
Minerals Management Service guidelines subject to pricing thresholds.
McMoRan's net revenue interest would increase during the royalty
relief period for eligible leases.

(b) Timing is subject to change.

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