McMoRan says Davy Jones flow tests imminent

McMoRan Exploration Co., New Orleans, has perforated 165 ft of Wilcox sands in the Davy Jones-1 ultradeep discovery well on the Gulf of Mexico shelf and is running tubing to conduct flow tests the week of July 30.

Next the company will test the Davy Jones-2. McMoRan noted that geologic data and results from five ultradeep wells have validated its geologic model and reduced the exploratory risk of the play, which may span 200 miles in shallow water and extend onshore.

Meanwhile, Chevron USA Inc. is drilling below 19,000 ft towards a planned 29,000 ft at the Lineham Creek wildcat onshore in Cameron Parish, La., to test Eocene and Paleocene objectives below the salt weld. McMoRan has a 36% interest in that well.

McMoRan has leased 68,000 gross acres on the Highlander ultradeep prospect in Iberia, St. Martin, Assumption, and Iberville Parishes and plans to spud a 30,000-ft well targeting presalt Eocene, Paleocene, and Cretaceous objectives in the second half of 2012.

McMoRan said data from the five wells indicate the presence below the salt weld of geologic formations including Miocene, Frio, Vicksburg, Upper Eocene, Sparta carbonate, Wilcox, Tuscaloosa, and Cretaceous carbonate that have been important hydrocarbon reservoirs onshore, in the deepwater gulf, and internationally.

On the 20,000-acre Davy Jones structure, Davy Jones-1 logged 200 net ft of pay in multiple Wilcox sands, all of which were full to base. Davy Jones-2, 2-1/2 miles southwest, confirmed 120 net ft of pay in multiple Wilcox sands and encountered 192 net ft of potential hydrocarbons in the Tuscaloosa and Lower Cretaceous carbonate sections.

McMoRan, with a 63.4% working interest and 50.2% net revenue interest in Davy Jones on South Marsh Island Block 234, said its investment there totaled $905.5 million as of June 30, including $474.8 million in allocated property acquisition costs.

McMoRan will submit development plans for its Blackbeard East ultradeep project on South Timbalier Block 144 and its Lafitte project on Eugene Island Block 223 to the Bureau of Safety and Environmental Enforcement in the third quarter of 2012.

The company said Blackbeard East exploration results enhance the potential of its other acreage in the area, including the Blackbeard West-2, Barbosa, and Queen Anne’s Revenge ultradeep prospects. It said the Lafitte results improve the potential of its Barataria and Captain Blood ultradeep prospects.

Other Davy Jones working interest holders are Energy XXI (Bermuda) Ltd. 15.8%, JX Nippon Oil Exploration (Gulf) Ltd. 12%, and Moncrief Offshore LLC 8.8%.

Contact Alan Petzet at

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