Davy Jones discovery opens up new large production potential

The recent Davy Jones gas discovery in the Gulf of Mexico is a perfect example of the dynamics and drama associated with frontier exploration.Even under ordinary conditions the exploration business is capital and technology intensive with huge risks. But frontier exploration is in a league of its own where various conditions are by definition not ordinary.On Jan. 11, 2010, McMoRan Exploration Co. (MMR) announced a giant gas discovery in its deep Wilcox test well on South Marsh Island Block 230 in 20 ft of water and 10 miles off Louisiana. MMR spud the well on June 28, 2009, and logged it in January 2010.The discovery is notable for several reasons.First of all, making a world-class discov...

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