McMoRan Exploration's 2nd Well at Flatrock Field a Success

McMoRan Exploration announced its second successful well at the Flatrock field located on OCS 310 at South Marsh Island Block 212 in ten feet of water.

The Flatrock No. 2 ("B" location) delineation well, which commenced drilling on October 7, 2007, is located approximately one mile northwest of the Flatrock discovery well. The well has been drilled to 15,400 feet and log-while-drilling tools have indicated three resistive zones in the Rob-L section approximating 198 net feet over a combined approximate 315 foot gross interval. These zones will be evaluated with wireline logs. The well will be deepened to a proposed total depth of 18,100 feet to evaluate additional targets in the Rob-L and Operc sections.

McMoRan's Co-Chairmen, James R. Moffett and Richard C. Adkerson, said, "We are pleased with the results to date from the Flatrock No. 2 delineation well, which confirm the potential for significant hydrocarbons in this exciting area. We look forward to commencing production from the Flatrock No. 1 discovery well in the weeks ahead and to testing additional objectives on this large acreage position."

McMoRan also today updated the status of the Flatrock No. 3 ("D" location) delineation well. The No. 3 well commenced drilling on November 5, 2008 and has been drilled to 14,800 feet. The well has a proposed total depth of 18,800 feet and is targeting Rob-L and Operc sands approximately 3,000 feet south of the discovery well.

As previously reported, the Flatrock No. 1 ("A" location) discovery well was drilled to a total depth of 18,400 feet in August 2007. 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. A production test was performed in October 2007 in the Operc section and indicated a gross flow rate of approximately 71 million cubic feet of natural gas per day (MMcf/d) and 739 barrels of condensate, approximately 14 MMcfe/d net to McMoRan. First production from the discovery well is expected to commence in the first quarter of 2008 using the Tiger Shoal facilities in the immediate area.

McMoRan controls approximately 150,000 gross acres in the Tiger Shoal/Mound Point area (OCS 310/Louisiana State Lease 340). McMoRan has made several discoveries in this important area, including Flatrock, 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 in the Flatrock field. Plains Exploration & Production Company has a 30.0 percent working interest.