McMoRan Mulls Hurricane Deep Sidetrack at GOM's Flatrock Field

McMoRan Exploration has provided a status report on the Flatrock field located on the Shelf of the Gulf of Mexico.


Following the Flatrock discovery in OCS 310 on South Marsh Island Block 212 in July 2007, McMoRan has drilled five additional successful wells in the field. Four wells have commenced production and gross production from the field averaged approximately 220 MMcfe/d (41 MMcfe/d net to McMoRan) in the first quarter of 2009. Production from these wells is currently temporarily shut in for previously reported planned facility expansion, maintenance and remediation activities.

First production from the Flatrock Nos. 5 and 6 wells is expected by mid-year 2009. In April 2009, a successful production test was performed on the Flatrock No. 6 well. The production test, which was performed in the Rob-L section, indicated a gross flow rate of approximately 22 million cubic feet of natural gas per day (MMcf/d) and 485 barrels of condensate, approximately 4.5 MMcfe/d net to McMoRan, on a 16/64th choke with flowing tubing pressure of 10,680 pounds per square inch. The operator believes this well is capable of producing at a gross rate of 50 – 60 MMcfe/d. Following these activities, McMoRan expects the gross production rate from the six wells in the field to approximate 335 MMcfe/d, 63 MMcfe/d net to McMoRan.

McMoRan is evaluating a sidetrack of the Hurricane Deep well on the southern flank of the Flatrock structure to test the significant Gyro sand encountered in the Hurricane Deep well on South Marsh Island Block 217. As previously reported, the Hurricane Deep exploratory well was drilled to a true vertical depth of 20,712 feet in the first quarter of 2007 and logs indicated an exceptionally thick upper Gyro sand totaling 900 gross feet, the top 40 feet of which was hydrocarbon bearing. McMoRan believes an up dip well has the potential to contain a thicker hydrocarbon column.

McMoRan controls approximately 150,000 gross acres in the Tiger Shoal/Mound Point area (OCS 310/Louisiana State Lease 340) and has multiple additional exploration opportunities with significant potential on this large acreage position. McMoRan has a 25.0 percent working interest and an 18.8 percent net revenue interest in Flatrock. PXP holds a 30.0 percent working interest.


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