Davy Jones to Add Significantly to McMoRan's Reserves

Independent reservoir engineers' estimates of McMoRan's proved oil and gas reserves as of December 31, 2009, were 271.9 Bcfe, compared with 344.8 Bcfe at December 31, 2008. The reserve depletion primarily reflects year-to-date production from McMoRan's producing properties.

Year-end 2009 reserves exclude reserves from the Davy Jones ultra-deep discovery, which was logged in January 2010. McMoRan is working with independent reservoir engineers to assess the reserves for Davy Jones and the timing for reporting such reserves. McMoRan expects Davy Jones to add significantly to its reserves.