McMoRan Goes Deeper at Flatrock

McMoRan Exploration says the Flatrock discovery well has been drilled to 18,100 feet and encountered three additional hydrocarbon bearing zones in the Operc section. Wireline logs indicated 30 net feet of hydrocarbon bearing sands over a 120 foot gross interval in one sand and log-while-drilling tools indicated 41 net feet over a 153 foot gross interval in two sands. These three zones are deeper than the five zones previously announced in July 2007, which contained 189 net feet of hydrocarbon bearing sands over a combined 364 foot gross interval above 16,500 feet in the Rob-L section as indicated by wireline logs. In total, the well has encountered eight zones, totaling 260 net feet of hydrocarbon bearing sands over a combined 637 foot gross interval. The well will be drilled to 19,000 feet to evaluate deeper targets in the Operc section.

The Flatrock exploratory prospect, which commenced drilling in March 2007, is located on OCS Block 310 at South Marsh Island Block 212 in approximately 10 feet of water. Following drilling activities, production from the well is expected to commence quickly using existing infrastructure in the area. McMoRan intends to develop the opportunities in this area aggressively and is currently permitting three offset locations to provide further options for the development of the multiple reservoirs found in the Rob-L and Operc sections.

McMoRan's Co-Chairmen, James R. Moffett and Richard C. Adkerson, said: "The drilling results at Flatrock continue to indicate a major discovery. The presence of multiple pay zones in the Rob-L and Operc sections of the middle Miocene in a single well is significant. We believe there are significant additional development and exploration opportunities on this large structure. Flatrock is a great example of our deeper pool concept, representing the deeper expression of the structural features of the Tiger Shoal field, which produced over 3 trillion cubic feet of natural gas equivalents from multiple wells above 12,500 feet."

McMoRan controls a significant amount of acreage in the Tiger Shoal/Mound Point area (OCS Block 310/Louisiana State Lease 340). The addition of the Flatrock discovery follows prior discoveries by McMoRan in this important area, including Hurricane, Hurricane Deep, JB Mountain, and Mound Point. McMoRan 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 and is the operator of the Flatrock well. Plains Exploration & Production Company has a 30 percent working interest.

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