McMoRan Exploration Co. Announces Third-Quarter 2010 EPS of ($.26)

McMoRan Exploration Co. MMR today reported a net loss applicable to common stock of $25.3 million, $0.26 per share, for the third quarter of 2010 compared with a net loss of $51.9 million, $0.60 per share, for the third quarter of 2009.

HIGHLIGHTS

• Completed agreements to acquire Plains Exploration & Production Company's PXP shallow water Gulf of Mexico (GOM) shelf assets and to issue $900 million in new equity-linked securities to fund future capital expenditures associated with McMoRan's expanded asset base. Closing of the acquisition and financings is expected by year-end 2010.
• Exploration & Development Activities:
  • Completion and flow test of the Davy Jones #1 discovery well expected to commence in the third quarter of 2011.
  • Davy Jones offset appraisal well commenced drilling on April 7, 2010 and is currently drilling below 19,900 feet towards a proposed total depth of 29,950 feet.
  • Blackbeard East ultra-deep exploratory well commenced drilling on March 8, 2010 and is currently drilling below 26,000 feet towards a proposed total depth of 29,950 feet. Analysis of the information obtained to date indicates hydrocarbons in quality reservoir rocks with good porosity and permeability in the Upper and Middle Miocene below the salt weld.
  • Lafitte ultra-deep exploratory well commenced drilling on October 3, 2010 and is currently drilling below 3,300 feet towards a proposed total depth of 29,950 feet.
  • Wireline logs at Blueberry Hill indicated that the deep gas well encountered 105 net feet of hydrocarbon bearing sands with exceptional porosity in the Miocene. Completion activities are under way with first production expected in the first quarter of 2011.
  • Near-term drilling includes three additional exploratory wells at the Boudin, Hurricane Deep and Platte prospects.