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): March 7, 2001
McMoRan Exploration Co.
Delaware 001-0779 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 and Regulation FD Disclosures
We announce the following exploration drilling activities update:
Louisiana State Lease 340. We commenced drilling the Louisiana
SL 340 #1 well (Mound Point prospect) on October 22, 2000 under a
turnkey drilling contract with a contract depth of approximately
18,500 feet. The well encountered mechanical difficulties
prior to reaching contract depth and, after considerable effort
to complete drilling of the well, the turnkey operator terminated
the turnkey contract. We incurred no drilling costs since
contract depth was not reached. On February 8, 2001, we
commenced the Louisiana SL 340 #2 exploratory well under a day-
rate drilling contract. The #2 well, currently drilling at
approximately 12,400 feet, has the same objective as the #1 well,
and is also planned for a total depth of approximately 18,500
feet. We have a 29.6 percent working interest and a 22.3 percent
net revenue interest in the well. We control approximately
62,000 acres in the Louisiana SL 340 area, with the average water
depth being less than 10 feet.
Eugene Island Block 97 # 2. On February 22, 2001, drilling
commenced on the Eugene Island 97 #2 exploratory well
(Thunderbolt - shallow prospect). The #2 well will test
objectives in a separate, but adjacent, fault block from the
fault block encountered by the #1 exploratory well, which
encountered 75 feet of pay in sands logged between measured
depths of 14,000 and 14,290 feet during the fourth quarter of
2000. The well has a total planned depth of approximately 16,400
feet and is currently drilling at approximately 11,000 feet. We
hold a 38.0 percent working interest and a 27.4 percent net
revenue interest in the #2 well. This prospect is located in 27
feet of water, approximately 25 miles offshore Louisiana in the
Gulf of Mexico. We control 19,375 acres in the immediate area.
Garden Banks Block 272. On November 30, 2000, we commenced
drilling the Garden Banks Block 272 #1 exploratory well (Crete
prospect). In early March 2001, the well reached a total depth
of approximately 22,000 feet and subsequent evaluations of the
well indicated that the well did not contain commercial
quantities of hydrocarbons. Accordingly, we will record an
approximate $17 million charge to exploration expense during the
first quarter of 2001 for the well's drilling and related costs.
We control approximately 17,280 acres in the Crete area, and we
are evaluating the data derived from drilling the #1 exploratory
well to determine if future activities on the prospect are
warranted. We own a 71.3 percent working interest and a 51.3
percent net revenue interest in the Crete prospect, which is
located in 560 feet of water approximately 135 miles offshore
Texas.
Grand Isle Block 2 and West Delta Blocks 1/12/13. On September
19, 2000 drilling commenced at the West Delta Block 12 #1 well
(Intruder-N. Prowler prospect). The well reached a total depth
of approximately 18,800 feet. In mid-February 2001, after flow
testing and evaluating the results of multiple potentially
productive zones within the West Delta Block 12 #1 exploratory
well, we concluded that the well did not contain commercially
producible hydrocarbons. The well has been temporarily
abandoned and its permanent abandonment is planned. We will
charge approximately $12 million to exploration expense in the
first quarter of 2001 for all drilling and related costs
associated with these prospects. We own a 47.5 percent working
interest and a 32.1 percent net revenue interest in this
prospect, which covers 2,788 acres and is located in 12 feet of
water offshore Louisiana.
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: March 7, 2001