McMoRan Reports Successful Production Test at Flatrock Discovery

McMoRan reports a successful production test at the Flatrock discovery (location "A"), located on OCS 310 at South Marsh Island Block 212 in approximately 10 feet of water.

The production test, which was performed in the Operc section, indicated a gross flow rate of approximately 71 MMcf/d and 739 barrels of condensate, approximately 14 MMcfe/d net to McMoRan, on a 37/64th choke with flowing tubing pressure of 8,520 pounds per square inch. McMoRan and its partners will use the results of the production test to determine the optimal flow rate for the well, which is expected to begin commercial production by year-end 2007 using the Tiger Shoal facilities in the immediate area.

As previously reported, the Flatrock discovery well was drilled to a total depth of 18,400 feet. Wireline and log-while-drilling porosity logs confirmed that the well encountered eight zones totaling 260 net feet of hydrocarbon bearing sands over a combined 637 foot gross interval, including five zones in the Rob-L section and three zones in the Operc section.

McMoRan’s Co-Chairmen, James R. Moffett and Richard C. Adkerson, said, "We are pleased with the results of this production test which confirm the Flatrock prospect as a potentially significant discovery. The test of this zone in the Operc section is the highest test in McMoRan’s recent history. We look forward to bringing this well on line and to the opportunities to establish additional production from the shallower Rob-L section, which had the thickest pay zone in the initial discovery well."

McMoRan is pursuing aggressively the opportunities in this area and has permitted three offset locations to provide further options for the development of the multiple reservoirs found in the Rob-L and Operc sections. The first permitted location, Flatrock No. 2 (location "B"), commenced drilling on October 7, 2007. The well, which is currently drilling at 5,000 feet, has a proposed total depth of 18,100 feet and will target Rob-L and Operc sands approximately one mile northwest of the discovery.

The second permitted location, Flatrock No. 3 (location "D"), is expected to commence drilling in the fourth quarter of 2007 following the completion of the discovery well. The No. 3 well has a proposed total depth of 18,800 feet and will target Rob-L and Operc sands approximately 3,000 feet south of the discovery well.

McMoRan controls approximately 150,000 gross acres in the Tiger Shoal/Mound Point area (OCS Block 310/Louisiana State Lease 340). McMoRan has a 25% working interest and an 18.8% net revenue interest in the Flatrock field. Plains Exploration & Production Company has a 30% working interest.