McMoRan Repays Bridge Loan

McMoRan Exploration has completed the sale of $300 million of 11.875% senior notes due 2014. This offering generated net proceeds of approximately $292 million. McMoRan used the proceeds from this offering together with borrowings under an existing bank credit facility to fully repay the remaining $350 million balance on the bridge facility used to acquire the Gulf of Mexico shelf oil and gas properties of Newfield Exploration Company.

James R. Moffett and Richard C. Adkerson, McMoRan's Co-Chairmen, said, "Our recent equity and debt financings enabled us to repay the bridge financing used in connection with the Newfield acquisition, providing us with a long-term capital structure to pursue aggressively our exciting opportunities. We are pleased with the receptivity of investors to our company's assets and business strategy. We will continue to seek opportunities to build asset values through our focused exploration and exploitation activities and our potential offshore LNG project."

As previously reported, McMoRan completed $468 million in equity financings in November 2007 through the sale of 16.9 million shares of common stock at $12.40 per share and 2.59 million shares of 6¾% mandatory convertible preferred stock at $100.00 per share. Net proceeds of approximately $450 million were used to repay borrowings under the bridge facility.

After giving effect to these equity offerings, McMoRan has approximately 51.6 million shares of common stock outstanding and approximately 85.5 million to 89 million shares assuming conversion of McMoRan's newly issued mandatory convertible preferred stock, outstanding convertible notes and warrants.