SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 5, 2000
McMoRan Exploration Co.
Delaware 001-07791 72-1424200
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
1615 Poydras Street
New Orleans, Louisiana 70112
Registrant's telephone number, including area code: (504) 582-4000
Item 5. Other Events.
Explorations drilling - operations update
McMoRan Exploration Co. (NYSE:MMR) today provided the following
update of its current exploration drilling activities:
. In August 2000, we completed drilling the Ship Shoal Block
296 #2 well, which delineated the reserves previously
discovered by the #1 well. We are evaluating our development
alternatives for the discovery at this location and expect
initial production to commence by mid-2001. We operate and
hold a 61.8 percent working interest and a 43.1 percent net
revenue interest in the wells at Ship Shoal Block 296. Ship
Shoal Block 296 covers 5,000 acres and is located in
approximately 260 feet of water, 62 miles offshore Louisiana.
. On August 26, 2000, we commenced drilling the Vermilion Block
196 #2 exploratory well. The proposed total depth on the well
is 15,000 feet and is located in 115 feet of water. We
currently have a 95 percent working interest and a 71.1
percent net revenue interest in the well.
. The Garden Banks Block 580 #1 well reached a total depth of
approximately 10,330 feet in August 2000. The well was
evaluated and determined not to be commercially viable and has
since been plugged and abandoned. The related well costs of
approximately $6.0 million will be charged to exploration
expense during the third quarter of 2000.
The table below sets forth approximate information, as of
September 5, 2000, with respect to exploration prospects upon
which we plan to commence drilling during the remainder of 2000
and early 2001 followed by a brief description of each prospect.
Planned
Total
Net Water Depth
Field, Lease Working Revenue Depth of Well b Gross Estimated c
or Well Interest a Interest (in feet) (in feet) Acres Spud Date
- ---------------- ---------- --------- -------- ---------- ------- -----------
Eugene Island
Block 97 71.3% 51.3% 2 14,500 5,000 3Q 2000
Vermilion Blocks
144/145 95.0% 76.3% 8 17,500 5,937 3Q 2000 d
Grand Isle Block
2 and
West Delta Blocks
1/12/13 71.3% 48.2% 12 20,700 2,788 4Q 2000
Main Pass Block
86/97 71.3% 51.3% 69 9,500 9,989 4Q 2000
Eugene Island
Blocks 193 53.4% 41.7% 100 17,500 12,500 4Q 2000
LA State Lease
340 54.2% 41.0% 9 18,500 29,919 4Q 2000
Onshore
Vermilion Parish 95.0% e 67.5% e - 19,000 4,200 1Q 2001
a. Except as otherwise indicated, reflects minimum estimated
working and net revenue interests assuming participation
elections by others, except Halliburton.
b. Reflects currently planned target total depth, which is
subject to change.
c. Tentative -- subject to change.
d. The Vermilion Block 144 #3 well will re-commence drilling
prior to October 21, 2000 (see below).
e. Subject to election by a third party to assume one-half of
interests shown.
_____________________
. Eugene Island Block 97. We have identified a combination
bright spot and structural play on the north portion of a
north-south trending structural ridge. The south end of the
ridge located on Eugene Island Block 108 has produced 178 Bcf
and 3.4 MMBbls.
. Vermilion Blocks 144/145. As previously reported on April 18,
2000, we reached the contracted turnkey depth of approximately
15,000 feet at the Vermilion Block 144 #3 well. We have set
protective casing and have temporarily abandoned the well.
These drilling activities have extended the lease expiration
date by 180 days to October 2000. The estimated additional
costs to reach a proposed depth of 17,500 feet are $4.7
million. We are continuing discussions with industry
participants regarding their participation in our exploration
program, including this well. We currently own a 95 percent
working interest and a 76.3 percent net revenue in the
prospect. The well is a deeper pool exploratory test of a
formation below sands that have a cumulative production of 140
Bcfe. Vermilion Block 144 is directly north of where we
drilled the Vermilion Block 159 CJ#1 well discovery and east
of our Vermilion Block 160 unit.
. Grand Isle Block 2 & West Delta Blocks 1/12/13. We have
identified a bright spot play that contains stacked amplitudes
from 17,000 to 20,000 feet total vertical depth (TVD).
Analogs nearby are the Queen Bess Island field that produced
262 Bcf and West Delta 17/18 that produced 159 Bcf.
. Main Pass Blocks 86/97. The prospect targets from 9,500 to
10,500 feet TVD. These sands are the same stratigraphic
intervals that are producing natural gas and condensate in the
adjacent Main Pass Block 162.
. Eugene Island Blocks 193. These blocks are within a producing
field that has cumulatively produced 243 Bcf and 64.6 MMBbls.
Bright spot and structural plays have been identified on the
north and south flanks of a salt dome centered in Eugene
Island Block 208. We plan to drill the exploration wells from
an existing platform. We acquired our interest in this
property for approximately $0.3 million, and the assumptions
of an abandonment obligation associated with existing wells
and platforms at the location. As previously announced, we
re-established sustained production at approximately 800
barrels per day (350 barrels per day net to our interest) from
four wells in the field during June 2000.
. Louisiana State Lease 340. We are mapping over 200 square
miles of proprietary 3-D seismic data and have identified two
separate prospects in the area, which covers approximately
62,000 acres. These prospects are located in an established
producing area which has cumulative production totaling
approximately 53.9 million barrels of oil and 5.8 Tcf of gas.
. Onshore Vermilion Seismic Option. We entered into a seismic
option covering 4,200 acres near one of the most prolific
producing fields located in the coastal region of Vermilion
Parish, Louisiana. This option allows us to review the
geological data and acquire and map the 3-D seismic data prior
to committing to drill an exploratory well. We can earn from
50 percent to 75 percent working interest under certain terms
and conditions. Our objectives occur at depths of 15,500 to
18,500 feet TVD (19,000 feet measured depth). The prospect is
positioned on a significant structural closure located 2.5
miles west of and separate from a large gas field that has
produced nearly 2 Tcfe.
We are evaluating our current lease inventory and are in the
process of reviewing potential prospects that have lease
expiration dates during 2000. This review process may add new
prospects to our 2000 and 2001 drilling plans, in which case the
anticipated spud dates for some of the prospects described above
may change.
SIGNATURE
------------------
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
McMoRan Exploration Co.
By: /s/ C. Donald Whitmire, Jr.
-----------------------------
C. Donald Whitmire, Jr.
Vice President & Controller -
Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: September 6, 2000