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March 2007

Vol. 12, No. 11 Week of March 18, 2007

McMoRan well uncovers ‘exceptionally’ thick pay in Gulf of Mexico

E&P independent McMoRan Exploration said its Hurricane Deep well on South Marsh Island block 217 in the Gulf of Mexico appears to have uncovered “an exceptionally thick” upper Gyro sand totaling around 900 gross feet.

“These exceptional sand thicknesses suggest that prospects in the Mound Point/JB Mountain/Hurricane/Blueberry Hill area may have thick sands as potential Gyro reservoirs,” McMoRan said Feb. 26, adding that previous wireline logs in the Hurricane Deep well indicated 27 net feet of hydrocarbon bearing sands over a 200 foot gross interval in a laminated Rob-L section and a potential 20 net feet of hydrocarbon bearing sands over a 70 foot gross interval in the Operc section.

McMoRan said it planned to continue drilling the Hurricane Deep well to a true vertical depth of 21,500 feet and, if successful, the well could be brought on line quickly using existing facilities in the area. The well, spud in late October, is currently drilling below a true vertical depth of 20,600 feet.

The Hurricane Deep prospect is located in just 12 feet of water on outer continental shelf block 310, one mile northeast of the company’s Hurricane discovery well which is currently producing. McMoRan, with a 25 percent working interest and a 17.7 percent net revenue interest in the prospect, controls 7,700 gross acres in this area. This well would be McMoRan’s seventh successful well in the OCS 310/State Lease 340 area.

Meanwhile, McMoRan said its Cas exploratory well on South Timbalier Block 70 is drilling and on its way to a planned true vertical depth of 25,000 feet. The Cas prospect is situated in roughly 65 feet of water. McMoRan controls 5,000 gross acres in the area, with a 15 percent working interest and a 12.4 percent net revenue interest.

McMoRan also said a rig is on location at its Cottonwood Point prospect on Vermilion block 31 and that drilling was expected to commence within a week. McMoRan has a 15 percent working interest and an 11.3 percent net revenue interest in the Cottonwood Point well.

As the company previously reported, the Blueberry Hill well on Louisiana State lease 340 encountered four potentially productive hydrocarbon-bearing sands below 22,200 feet. Testing of the well began in the fourth quarter of 2006 following the receipt of special tubulars and casing for the high pressure well.

“The well has been perforated but production has not been established because of blockage above the perforated intervals,” McMoRan said, adding that additional operations to clear the blockage and complete testing of the well were expected in the coming weeks.

Information obtained from the testing of the Blueberry Hill well and the results of the Hurricane Deep well currently drilling will be incorporated in future plans for the JB Mountain Deep well, “as all three areas demonstrate similar geologic settings and are targeting deep Miocene sands equivalent in age,” the company said.

McMoRan holds a 35.3 percent working interest and a 24.2 percent net revenue interest in Blueberry Hill and a 35 percent working interest and a 24.8 percent net revenue interest in JB Mountain Deep.

—Ray Tyson






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