McMoRan to Re-Perforate Davy Jones Well (USA)

McMoRan has announced that operations to achieve commercial production at Davy Jones No. 1 on South Marsh Island Block 230, in the shallow waters of the Gulf of Mexico (GOM) Shelf, are ongoing.

Recent operations designed to unblock the perforations using a propellant stimulation gun had limited success and McMoRan is initiating operations to re-perforate the well with electric wireline through-tubing guns. McMoRan will provide updates as flow testing operations progress.

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%).

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December 28, 2012