McMoRan Exploration updates Gulf of Mexico and Gulf Coast exploration and development
  by: OilOnline
  Monday, October 03, 2005

McMoRan Exploration Co has updated its Gulf of Mexico and Gulf Coast exploration and production activities following Hurricane Katrina and Hurricane Rita. McMoRan's initial assessment of its exploration and development operations, production facilities and the Main Pass Energy Hub(TM) (MPEH(TM)) platforms indicate no apparent major damage.

After Hurricane Katrina, production had been restored on all production facilities with the exception of production at Main Pass Block 299 and Main Pass Block 86 ("Shiner"). Subsequently, Hurricane Rita resulted in shut-in of all producing facilities. All facilities have been inspected and all are expected to return to production, pending availability of third party downstream facilities, with the exception of Main Pass Block 299 and Shiner where repairs to damages resulting from Hurricane Katrina continue. Repairs to the Main Pass Block 299 oil facilities are under way and production is expected to be restored in the fourth quarter of 2005. Prior to Hurricane Katrina, oil production at Main Pass 299 averaged approximately 3,500 barrels per day (2,900 bbls/day or 17 million cubic feet equivalents per day (Mmcfe/day) net to McMoRan) during the third quarter of 2005. Repairs at Shiner will be completed promptly, and full production is pending repairs to a third party terminal facility damaged by Hurricane Katrina, which are expected to be completed in the fourth quarter of 2005. Prior to Hurricane Katrina, production at Shiner averaged approximately 16 Mmcfe/d (6 Mmcfe/d net to McMoRan) during the third quarter of 2005.

McMoRan expects its third quarter 2005 production to average approximately 40 Mmcfe/day, including 1,800 bbls/day (11 Mmcfe/day) for McMoRan's share of production at Main Pass Block 299. Absent production downtime for Hurricanes Katrina and Rita, McMoRan estimates third quarter 2005 production would have approximated 57 Mmcfe/day, including 2,900 bbls/day (17 Mmcfe/day) for McMoRan's share of oil production at Main Pass 299.

McMoRan is actively engaged in exploratory activities on the following four prospects, JB Mountain Deep at South Marsh Island Block 224, Cane Ridge at Louisiana State Lease 18055, Long Point at Louisiana State Lease 18090 and Elizabeth at South Marsh Island Block 230. McMoRan is also actively engaged in development activities at King Kong No. 2 at Vermilion Blocks 16/17, Hurricane No. 2 at South Marsh Island Block 217 and West Cameron Block 43 No. 4. Barge rigs working in open water locations (JB Mountain Deep, Hurricane No. 2, and King Kong No. 2.) were moved inland to safe harbor prior to Hurricane Rita. None of these rigs sustained significant damage and all are returning to operations. The drilling rig at Long Point sustained no significant damage and drilling operations have resumed. Work is on-going to restore a flooded access road to the Cane Ridge location. The jack-up rig at the Elizabeth prospect remained on location and is currently drilling.