Flatrock 4 Well in GOM Shut In for Maintenance

McMoRan reported that the Flatrock No. 4 (#231) well was shut in on August 13 and the operator plans to perform operations to address a mechanical issue associated with the well bore and not related to the reservoir. The Flatrock No. 4 well had been producing at a rate of approximately 100 million cubic feet of natural gas equivalents per day (18 MMcfe/d net to McMoRan) for over six months prior to being shut in.

The Flatrock No. 5 (#232) well is currently being recompleted and production is expected to commence from the primary Rob-L sand imminently. Four of the six wells in the Flatrock Field are currently producing at a gross rate of approximately 210 MMcfe/d (37 MMcfe/d net to McMoRan). McMoRan and PXP hold 25 and 30 percent working interests, respectively, in the Flatrock Field.

After taking into account downtime at the Flatrock field and recent shut-ins associated with required repairs to third-party downstream facilities, McMoRan expects its third quarter 2009 production will average approximately 210 - 215 MMcfe/d, slightly below its July 16, 2009 estimate of 220 MMcfe/d. Assuming completion of remedial activities at the Flatrock No. 4 well during the fourth quarter, McMoRan expects fourth quarter production to average approximately 215 MMcfe/d. McMoRan's estimated production rates are dependent on the timing of planned recompletions, production performance and other factors.


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