McMoRan Exploration Offers Update on Exploration, Development Activities in Gulf of Mexico, Gulf Coast Area

McMoRan Exploration Co. (NYSE: MMR) updated its ultra-deep exploration anddevelopment activities in the shallow waters of the Gulf of Mexico (GOM) Shelfand onshore in the Gulf Coast area, including in progress flow testingoperations at Davy Jones No. 1, positive drilling results onshore at LinehamCreek, new logging results from Blackbeard West No. 2 and in progressoperations at Lomond North.McMoRan today provided an update on the Davy Jones No. 1 production testcurrently in progress on South Marsh Island Block 230. As previously reportedin October 2012, McMoRan replaced heavy drilling mud in the hole with clearcompletion fluid, which was required to suppress flow in the well while thefinal steps were completed. On November 11, 2012, the well was opened for testand flowed gas into an unmetered atmospheric tank before being flared. Todate, MMR has recovered completion fluids with weights of approximately 9 and19 pounds per gallon and is initiating operations to inject a barite solventinto the formation in order to clean out the perforations to achieve ameasureable flow test. McMoRan will provide updates as flow testing operationsprogress and a measurable flow test is achieved.As previously reported, McMoRan has drilled two successful sub-salt wells inthe Davy Jones field. The Davy Jones No. 1 well logged 200 net feet of pay inmultiple Wilcox sands, which were all full to base. The Davy Jones offsetappraisal well (Davy Jones No. 2), which is located two and a half milessouthwest of Davy Jones No. 1, confirmed 120 net feet of pay in multipleWilcox sands, indicating continuity across the major structural features ofthe Davy Jones prospect, and also encountered 192 net feet of potentialhydrocarbons in the Tuscaloosa and Lower Cretaceous carbonate sections.