McMoRan Hits 4th Successful Well at Flatrock

McMoRan Exploration Co. announced its fourth successful well at the Flatrock field located on OCS 310 at South Marsh Island Block 212 in ten feet of water at the Flatrock No. 4 ("C" location).

The Flatrock No. 4 ("C" location) infill development well, which commenced drilling on April 9, 2008, is located between the Flatrock No. 1 discovery and the Flatrock No. 2 wells. The No. 4 well has been drilled to 15,315 feet and log-while-drilling tools have indicated hydrocarbon bearing sands in the proven hydrocarbon column in the Rob-L section approximating 135 net feet over a total approximate 246 foot gross interval. The well will be deepened to a proposed total depth of 18,500 feet to evaluate additional targets in the Rob-L and Operc sections.

The Flatrock No. 3 delineation well has been drilled to 18,587 feet and the well will be completed in the Operc section. As previously announced, wireline logs confirmed that the well encountered a total of 256 net feet of hydrocarbon pay.

As previously announced, McMoRan has drilled two additional successful wells in the Flatrock area. The initial discovery well came online in January 2008 at a gross rate of 50 MMcfe/d (~12 MMcfe/d net to McMoRan). The Flatrock No. 2 well was tested in a Rob-L sand at a gross rate of 114 MMcfe/d (21.4 MMcfe/d net to McMoRan) and is expected to commence production mid-year 2008.

The Mound Point East exploratory well on Louisiana State Lease 340 commenced drilling on March 31, 2008 and was drilled to 17,000 feet before encountering mechanical problems. By-pass operations are under way. The well has a proposed total depth of 18,050 feet and is targeting Operc sands in the middle-Miocene. Mound Point East is located in less than 10 feet of water approximately 10 miles east of the Flatrock field. McMoRan is targeting deep geologic features in the Mound Point area similar to those discovered in the Flatrock field.

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% working interest and an 18.8% net revenue interest in the Flatrock field and a 32.5% working interest and a 23.2% net revenue interest in Mound Point East. Plains Exploration & Production Company has a 30.0% working interest in the Flatrock field and a 43.4% working interest in Mound Point East.

The South Timbalier Block 168 No. 1 wellbore, formerly known as the Blackbeard West No. 1 ultra-deep exploratory well, has been drilled to 31,943 feet.

McMoRan has set casing and plans to deepen the well to evaluate the primary targets. McMoRan will apply with the Minerals Management Service to re-permit the well to a depth of 35,000 feet. McMoRan operates the well and owns a 32.3% working interest. Other owners include PXP with a 35% working interest and Energy XXI with a 20% working interest.