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 29, 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. announces the following exploration
drilling update:
We have acquired an additional partner in our Vermilion Blocks
144/145 exploration prospect. The partner has a 25 percent
working interest and has paid us $2.2 million representing
reimbursement of previously incurred costs. A drilling rig is
currently at the location and preparing to begin drilling
operations. The rig will drill the final 3,000 feet of an
exploratory test well that was temporarily suspended at a depth
of 15,000 feet earlier this year. We are the operator of the
prospect.
We own a 47.5 percent working interest and 38.2 percent net
revenue interest in the Vermilion 144/145 prospect. The
Vermilion 144/145 prospect is located in 90 feet of water in the
Gulf of Mexico, approximately 40 miles offshore Louisiana. We
own interests in a total of approximately 22,000 acres in 5 OCS
blocks in the immediate area of the prospect, including Vermilion
Blocks 159/160, where we operate 3 wells with aggregate daily
production of approximately 25 million cubic feet of natural gas
per day (MMCF) and 600 barrels of oil. Our share of daily
production approximates 11 MMCF and 250 barrels of oil.
Aggregate production from our Vermilion 159/160 wells to date has
been approximately 59.3 billion cubic feet of natural gas and 1.8
million barrels of oil.
We expect to commence drilling operations at our Eugene Island
96/97/109-shallow exploration prospect within one week. The
Eugene Island 96/97/109-shallow prospect is in 27 feet of water
in the Gulf of Mexico, approximately 30 miles offshore Louisiana.
We own a 38 percent working interest and 27.4 percent net
revenue interest in the prospect. The well is expected to be
drilled to a total measured depth of approximately 15,400 feet.
A separate prospect at a greater depth has been identified on
this acreage, as previously disclosed.
As previously reported, drilling is underway at our 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. We own a 47.5 percent working interest and
a 32.1 percent net revenue interest in the prospect. The well is
expected to be drilled to a total measured depth of approximately
20,700 feet.
Under our previously announced alliance with Halliburton Company,
it has the right to participate in a discovery by paying 20
percent of our acquisition, exploration and development costs and
receiving 20 percent of our net revenues until payout, after
which Halliburton would receive 6 percent.
Cautionary Statement: This report contains forward-looking
statements in which we discuss actors and events that we
believe may affect our performance in the future. Forward-
looking statements are all statements other than historical
facts, such as statements regarding our planned exploration
drilling and production activities. Important factors that
might cause future results to differ from these forward-
looking statements include drilling risks, the market value
of oil and gas, uncertainties in interpreting engineering
data, industry risks and other factors described in our most
recent Form 10-K and subsequent Forms 10-Q filed with the
SEC.
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 29, 2000