Drill results at Blueberry reveal similar characteristics to Flatrock blockbuster

Oil and gas explorer and developer McMoRan Exploration Co. (NYSE: MMR) recently said drill results from its Blueberry Hill tested positive for a potential major natural gas discovery.

The deep gas exploratory sidetrack well located on Louisiana State Lease 340 was drilled to a true vertical depth of 21,900 feet, indicating resistive zones approximately 150 gross feet, the New Orleans, La.-based company said. McMoRan plans to deepen the well to a depth of 24,000 feet following a repair of a mechanical issue.

On March 29, 2009, the company reported it re-entered the Blueberry Hill operation with the intent to sidetrack a previously bored well.

“We are extremely encouraged by these drilling results which indicate thickening on the flank of the Blueberry Hill structure and a potential major discovery,” said McMoRan’s co-chairman, James R. Moffett. “We look forward to drilling deeper to evaluate additional prospective sands encountered in the original well. This appears to be a large structure with significant reserve potential and additional development and exploration opportunities.”

McMoRan potentially will add Blueberry Hill to its prior successes, including Flatrock, Hurricane, Hurricane Deep, JB Mountain and Mound Point, with further significant discoveries possible in this important area.

“Like our major discovery at Flatrock, where six wells in the field are currently capable of producing at a gross rate of over 300 million cubic feet of natural gas equivalents per day, Blueberry Hill is another clear example of our deeper pool concept. Blueberry Hill is located approximately 11 miles southeast of Flatrock and represents the deeper expression of the structural features of the shallower Mound Point field, which produced over 2.5 trillion cubic feet of natural gas equivalents from multiple wells above 12,500 feet,” Moffett stated.

McMoRan controls 150,000 acres in OCS Block 310/Louisiana State Lease 340, and has 42.9% working interest and a 29.7% net revenue interest in the Blueberry Hill project, while Plains Exploration and Production Co. (NYSE: PXP) holds a 47.9% working interest.

About McMoRan Exploration

McMoRan engages in the exploration, development and production of oil and natural gas offshore in the Gulf of Mexico and onshore in the Gulf Coast area. The company has one of the largest acreage positions in the shallow waters of the Gulf of Mexico and Gulf Coast areas.

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