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McMoRan exploration updates Gulf of Mexico exploration and development activities

NEW ORLEANS -- McMoRan Exploration has updated its ultra deep exploration and development activities in the shallow waters of the Gulf of Mexico and onshore in the Gulf Coast area, including in progress flow testing operations at Davy Jones No-1, positive drilling results onshore at Lineham Creek, new logging results from Blackbeard West No-2 and progress in operations at Lomond North.

The Davy Jones No-1 production test is currently in progress on South Marsh Island Block 230. As previously reported in October 2012, McMoRan replaced heavy drilling mud in the hole with clear completion fluid, which was required to suppress flow in the well while the final steps were completed. The well was opened for test and flowed gas into an unmetered atmospheric tank before being flared.

AsMcMoRan has drilled two successful subsalt wells in the Davy Jones field. Davy Jones No-1 well logged 200 ft of pay in multiple Wilcox sands, which were all full to base. The Davy Jones offset appraisal well Davy Jones No-2, which is located 2.5 mi southwest of Davy Jones No-1, confirmed 120 ft of pay in multiple Wilcox sands, indicating continuity across the major structural features of the Davy Jones prospect, and also encountered 192 ft of potential hydrocarbons in the Tuscaloosa and Lower Cretaceous carbonate sections.

Davy Jones involves a large ultra deep structure encompassing four OCS lease blocks. McMoRan is the operator and holds a 63.4% working interest and a 50.2% net revenue interest in Davy Jones. Other working interest owners in Davy Jones include Energy XXI 15.8%, JX Nippon Oil Exploration 12% and Moncrief Offshore 8.8%.

11/27/2012

 

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