NEW ORLEANS -- (Business Wire)
McMoRan Exploration Co. (NYSE: MMR) provided an update on the Davy Jones
No. 1 operations currently in progress on South Marsh Island Block 230.
As previously reported, the well was opened for testing in November
2012. Completion fluids were recovered from the well but flow was
believed to be restricted by residual barite in the perforations (i.e.
skin or formation damage). Barite is a heavy component of drilling mud
that was used to suppress flow of the well.
Recent operations to stimulate the well by injecting a solvent to
dissolve the barite had limited success as a result of insufficient
contact of the barite with the solvent. McMoRan is initiating operations
to use a propellant stimulation gun to create fractures that will extend
beyond the suspected formation damage to attempt to unblock the
perforations and if necessary McMoRan may inject additional solvent to
make contact and dissolve the barite. McMoRan will provide updates as
flow testing operations progress and a measurable flow test is achieved.
Davy Jones involves a large ultra-deep structure encompassing four OCS
lease blocks (20,000 acres). McMoRan is the operator and holds a 63.4
percent working interest and a 50.2 percent net revenue interest in Davy
Jones. Other working interest owners in Davy Jones include: Energy XXI
(NASDAQ: EXXI) (15.8%), JX Nippon Oil Exploration (Gulf) Limited (12%)
and Moncrief Offshore LLC (8.8%).
McMoRan Exploration Co. is an independent public company engaged in the
exploration, development and production of natural gas and oil in the
shallow waters of the GOM Shelf and onshore in the Gulf Coast area.
Additional information about McMoRan is available on its internet
CAUTIONARY STATEMENT:This press release contains
forward-looking statements that involve a number of assumptions, risks
and uncertainties that could cause actual results to differ materially
from those contained in the forward-looking statements. We caution
readers that forward-looking statements are not guarantees of future
performance or exploration and development success, and our actual
exploration experience and future financial results may differ
materially from those anticipated, projected or assumed in the
forward-looking statements. Such forward-looking statements include, but
are not limited to, statements regarding potential oil and gas
discoveries, oil and gas exploration, development and production
activities and costs, amounts and timing of capital expenditures,
reclamation, indemnification and environmental obligations and costs,
the potential for or expectation of successful flow tests, potential
quarterly and annual production and flow rates, reserve estimates,
projected operating cash flows and liquidity, the potential Main Pass
Energy HubTM project and other statements that
are not historical facts. No assurance can be given that any of the
events anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what impact they may have on our results
of operations or financial condition. Important factors that may cause
actual results to differ materially from those anticipated by
forward-looking statements include, but are not limited to, those
associated with general economic and business conditions, failure to
realize expected value creation from acquired properties, variations in
the market demand for, and prices of, oil and natural gas, drilling
results, unanticipated fluctuations in flow rates of producing wells due
to mechanical or operational issues (including those experienced at
wells operated by third parties where we are a participant), changes in
oil and natural gas reserve expectations, the potential adoption of new
governmental regulations, unanticipated hazards for which we have
limited or no insurance coverage, failure of third party partners to
fulfill their capital and other commitments, the ability to satisfy
future cash obligations and environmental costs, adverse conditions,
such as high temperatures and pressure that could lead to mechanical
failures or increased costs, the ability to retain current or future
lease acreage rights, access to capital to fund drilling activities, the
ability to obtain regulatory approvals and significant project financing
for the potential Main Pass Energy HubTM
project, as well as other general exploration and development risks and
hazards and other factors described in Part I, Item 1A. "Risk Factors"
included in our Annual Report on Form 10-K for the year ended December
31, 2011 filed with the SEC, as updated by McMoRan’s subsequent filings.
Investors are cautioned that many of the assumptions upon which our
forward-looking statements are based are likely to change after our
forward-looking statements are made, including for example the market
prices of oil and natural gas, which we cannot control, and production
volumes and costs, some aspects of which we may or may not be able to
control. Further, we may make changes to our business plans that could
or will affect our results. We caution investors that we do not intend
to update our forward-looking statements more frequently than quarterly,
notwithstanding any changes in our assumptions, changes in our business
plans, our actual experience, or other changes, and we undertake no
obligation to update any forward-looking statements.
McMoRan Exploration Co.
David P. Joint, 504-582-4203
Source: McMoRan Exploration Co.
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