McMoRan effects completion at Davy Jones well

April 9, 2012

McMoRan Exploration Co. said it has effected a technical completion at the Davy Jones-1 well on South Marsh Island Block 230 in the Gulf of Mexico and is working to establish commercial production.

Perforation of the Wilcox D sand resulted in positive pressure build-up in the wellbore followed by a gas flare from the well. Initial samples indicated that the natural gas from the Wilcox D sand is high quality and contains low levels of carbon dioxide and no hydrogen sulfide.

Blockage from drilling fluid associated with initial drilling operations prevented McMoRan from obtaining a measurable flow rate. Attempts to perforate the Wilcox C sand did not clear the blockage, and McMoRan has begun operations to remove the tubing from the well, clear the residual drilling fluid, and recover the perforating guns currently set across the Wilcox F sand to provide access to all of the Wilcox reservoirs (A through F) totaling 200 net ft.

To maximize production from the well and enable effective formation penetrations, McMoRan plans to use electric wireline casing guns that are larger than the tubing guns used to perforate the Wilcox C and D sands. The Bureau of Safety and Environmental Enforcement issued the final permits on Apr. 6 to approve the current operations. McMoRan expects these operations to enable a measurable flow rate during the second quarter of 2012 followed by commercial production shortly thereafter.