McMoRan Exploration Co., New Orleans, booked 12.9 billion cubic feet equivalent of net proved reserves as the first reserves to be booked in the South Louisiana ultradeep subsalt trend.
Consulting engineers engaged for McMoRan’s sole account estimated proved, probable, and possible oil and gas reserves of 546.7 bcfe gross, 141.7 bcfe net to McMoRan, at the Lineham Creek exploratory well operated by Chevron USA Inc. onshore in Cameron Parish, La.
The reserves McMoRan booked are associated with interim results from the sands encountered above 24,000 ft. The well is drilling below 27,600 ft to evaluate the deeper primary objectives and has a proposed total depth of 29,000 ft. Development plans will be determined following completion of drilling and evaluation of the deeper objectives.
James R. Moffett, McMoRan cochairman, chief executive officer, and president, said, “These are the first of what we hope will be sizable reserves from the subsalt, ultradeep trend onshore and in the shallow waters of the Gulf of Mexico.
“Indications of hydrocarbons shallower than 24,000 ft have positive implications for additional targets on trend within our portfolio. We look forward to results from ongoing drilling activities on the Lineham Creek structure and from the onshore Lomond North exploratory prospect currently being drilled.”
Chevron has a 50% interest in Lineham Creek, and McMoRan has 36%. Energy XXI (Bermuda) Ltd. has 9%, and W.A. “Tex” Moncrief Jr. has 5%.