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 20, 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.
McMoRan Exploration Co. (McMoRan) announces the following oil and
gas discovery and updates other operating activities:
On September 20, 2000, McMoRan and Noble Affiliates, Inc.
announced that the Vermilion Block 196 #2 exploratory well, the
initial well drilled under their previously announced multi-well
exploration alliance in the Gulf of Mexico, encountered 70 feet
of net hydrocarbon pay in 3 sands logged between measured depths
of 13,160 and 14,350 feet. The well was drilled to a total depth
of 14,798 feet and will be saved for future production. We
operate Vermilion Block 196, which is in an area where we control
15,000 acres containing a number of prospective exploration
opportunities at deeper horizons. Vermilion Block 196 is located
in approximately 115 feet of water, 50 miles offshore Louisiana
in the Gulf of Mexico.
Working interests in Vermilion Block 196 are owned 47.5
percent by us, 25 percent by Samedan Oil Corporation, a
wholly owned subsidiary of Noble Affiliates Inc., 25 percent by
another participant and 2.5 percent by an individual investor.
Shell Offshore Inc. retains a 6.25 percent royalty interest in
the block. Our net revenue interest in the block is
approximately 34.2 percent. Our share of initial revenues from
the #2 well will be approximately 54 percent because one working
interest partner elected not to participate in the #2 exploratory
well. Pursuant to a non-consent penalty clause in the joint
operating agreement that partner will receive no revenues from
the #2 well until the well reaches 600 percent payout. Under the
previously announced alliance with Halliburton Company, it has
the right to participate in the discovery by paying 20 percent of
the acquisition, exploration and development costs and receiving
20 percent of net revenues until payout, after which Halliburton
receives 6 percent.
After saving and temporarily abandoning the Vermilion Block
196 #2 well, the Marine 15 drilling rig will move to Vermilion
Block 144 to drill the approximate 3,000 remaining feet of an
exploratory well we commenced drilling operations on earlier this
year. As operator, we temporally suspended these earlier exploratory
operations at a depth of approximately 15,000 feet. We own a
71.3 percent working interest and Noble owns a 25 percent working
interest in the Vermilion 144/145 prospect, which is located in
90 feet of water approximately 40 miles offshore Louisiana.
Today we announced that the McMoRan $210 million
exploration program sold its 30 percent interest in the Vermilion
Block 408 for $6.5 million. Our 95 percent share in the program
equates to $6.2 million in sales proceeds. In the transaction,
The Houston Exploration Company purchased 16.8 percent of the
working interest and Samedan purchased the remaining 13.2 percent
of the working interest. We will recognize an approximate $3.2
million gain on the sale in our third quarter 2000 operating
results.
We also announced today that drilling has commenced at the
State Lease 16033 #1 exploratory well, located offshore Louisiana
in 17 feet of water on a 2,788 acre tract within Grand Isle Block
2 / West Delta Blocks 1/12/13. Working interests in the well are
owned 47.5 percent by us, 25 percent by Ocean Energy Inc., 25
percent by Samedan and 2.5 percent by an individual investor.
Ocean Energy, as operator, expects to drill the well to a total
measured depth of approximately 20,700 feet.
SIGNATURE
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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.
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C. Donald Whitmire, Jr.
Vice President & Controller -
Financial Reporting
(authorized signatory and
Principal Accounting Officer)
Date: September 21, 2000