McMoRan Highlights Positive Drilling Results at Blueberry Hill Well

McMoRan Exploration announced positive drilling results at its Blueberry Hill deep gas exploratory sidetrack well located on Louisiana State Lease 340. The well has been drilled to a true vertical depth of 21,900 feet and log-while-drilling tools have indicated resistive zones approximating 150 gross feet. These zones will be evaluated with wireline logs. McMoRan plans to deepen the well, which has a proposed total depth of 24,000 feet, following resolution of a mechanical issue. Blueberry Hill is located in approximately 10 feet of water near existing infrastructure.

As previously reported, on March 29, 2009, McMoRan re-entered a previously existing well bore and commenced sidetracking operations at the Blueberry Hill deep gas prospect. The well is targeting Gyro sands in a down-dip position on the flank of the structure that were encountered in the original Blueberry Hill well.

McMoRan's Co-Chairman, James R. Moffett, said, "We are extremely encouraged by these drilling results which indicate thickening on the flank of the Blueberry Hill structure and a potential major discovery. We look forward to drilling deeper to evaluate additional prospective sands encountered in the original well. This appears to be a large structure with significant reserve potential and additional development and exploration opportunities. Like our major discovery at Flatrock, where six wells in the field are currently capable of producing at a gross rate of over 300 million cubic feet of natural gas equivalents per day, Blueberry Hill is another clear example of our deeper pool concept. Blueberry Hill is located approximately 11 miles southeast of Flatrock and represents the deeper expression of the structural features of the shallower Mound Point field, which produced over 2.5 trillion cubic feet of natural gas equivalents from multiple wells above 12,500 feet."

McMoRan owns a 42.9 percent working interest and a 29.7 percent net revenue interest in the Blueberry Hill well and controls 150,000 gross acres in the Tiger Shoal/Mound Point area (OCS Block 310/Louisiana State Lease 340). Plains Exploration and Production Company holds a 47.9 percent working interest. The addition of the Blueberry Hill discovery follows prior discoveries McMoRan has made 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 is incorporating the new information from Blueberry Hill into its existing database for this high potential area.