McMoRan Exploration Co. (MMR)

[USA*2014]

This stock is riped for the shorts, Managemnent pumped the stock with promises that never happened. This is now dead money....

[OilStockReport]

Reentered today after confirmation of the bounce.

NEW ORLEANS--(BUSINESS WIRE)-- McMoRan Exploration Co. (NYSE:MMR - News) today updated its shallow water Gulf of Mexico exploration and development activities, including in-progress drilling at three ultra-deep prospects and two deep gas prospects and other activities.

Shallow Water, Ultra-deep Exploration Activities

The Blackbeard East ultra-deep exploration well commenced drilling on March 8, 2010 and is currently drilling below 29,000 feet. The well has a proposed total depth of 29,950 feet and McMoRan has applied for a permit to deepen the well to a new proposed total depth of 31,500 feet.

In addition to deepening the well to evaluate additional targets, McMoRan is formulating plans to evaluate the 178 net feet of hydrocarbon bearing sands encountered in the Blackbeard East well to date. McMoRan’s opportunities at Blackbeard East include 84 net feet of hydrocarbon bearing sands between 19,500 and 19,700 feet in the Upper Miocene, 54 net feet of hydrocarbon bearing sands on 15 feet of water at 24,200 feet in the Middle Miocene and 40 net feet of hydrocarbon bearing sands on 22 feet of water at 24,600 feet in the Middle Miocene. Assuming the sands below 24,000 feet have similar thicknesses higher on the structure, the up-dip potential would approximate 69 feet and 62 feet, respectively. Net pay counts were determined from additional petrophysical evaluation of wireline logs, side wall cores and formation tests.

Blackbeard East is located in 80 feet of water on South Timbalier Block 144. McMoRan holds a 38.5 percent working interest and 30.7 percent net revenue interest in the well. Upon completion of the previously announced acquisition of Plains Exploration & Production Company’s (NYSE:PXP - News) shallow water Gulf of Mexico (GOM) shelf assets, McMoRan would hold a 70.0 percent working interest and 56.2 percent net revenue interest in Blackbeard East. The PXP transaction is subject to McMoRan shareholder approval of the issuance of common stock to PXP, as required by New York Stock Exchange rules, the completion of financing transactions, receipt of regulatory approvals and other customary closing conditions. Other working interest owners in Blackbeard East include: Energy XXI (NASDAQ:EXXI - News) (18.0%), W.A. "Tex" Moncrief, Jr. (10.0%) and a private investor (2.0%).

On April 7, 2010, McMoRan commenced drilling the Davy Jones offset appraisal well on South Marsh Island Block 234, two and a half miles southwest of the Davy Jones discovery well. The well is currently drilling below 24,300 feet towards a proposed total depth of 29,950 feet. The offset appraisal well (Davy Jones #2) is expected to test similar sections up-dip to the discovery well, as well as deeper objectives, including potential additional Wilcox and possibly Cretaceous (Tuscaloosa) sections.

Davy Jones involves a large ultra-deep structure encompassing four OCS lease blocks (20,000 acres). McMoRan holds a 32.7 percent working interest and 25.9 percent net revenue interest in Davy Jones. Upon completion of the PXP transaction, McMoRan would hold a 60.4 percent working interest and 47.9 percent net revenue interest in Davy Jones. Other working interest owners in Davy Jones include: EXXI (15.8%), Nippon Oil Exploration USA Limited (12%), W.A. "Tex" Moncrief, Jr. (8.8%) and a private investor (3%).

The Lafitte ultra-deep exploration well commenced drilling on October 3, 2010 and is currently drilling below 9,700 feet towards a proposed total depth of 29,950 feet. Lafitte is located on Eugene Island Block 223 in 140 feet of water. The well is targeting Middle and Deep Miocene objectives below the salt weld. McMoRan holds a 40.5 percent working interest and 32.8 percent net revenue interest in the prospect. Upon completion of the PXP transaction, McMoRan would hold a 72.0 percent working interest and 58.3 percent net revenue interest in Lafitte. Other working interest owners in Lafitte include: EXXI (18.0%), and W.A. "Tex" Moncrief, Jr. (10.0%).

Shallow Water, Deep Gas Exploration Activities

The Laphroaig No. 2 well in St. Mary Parish, Louisiana commenced drilling on September 24, 2010, and is currently drilling below 16,500 feet with a planned total depth of 20,000 feet. The well is targeting proven undeveloped reserves identified by the discovery well as well as additional exploration potential. The Laphroaig discovery well was drilled in 2007. McMoRan has a 37.3 percent working interest and a 28.5 percent net revenue interest in the Laphroaig prospect. EXXI holds an 18.6 percent working interest.

The Platte deep gas exploration well in Vermilion Parish, Louisiana commenced drilling on November 19, 2010 and is currently drilling below 3,500 feet. The well has a proposed total depth of 17,000 feet and is targeting lower Miocene age sands. McMoRan holds a 50.0 percent working interest in Platte. EXXI holds a 50 percent working interest.

In November 2010, a production test was performed on the previously reported 105 net feet of hydrocarbon bearing sands encountered in the Blueberry Hill #9 STK1 well. Results from the production test indicated a range of rates and pressures. The well flowed at a gross rate as high as approximately 22 million cubic feet of natural gas per day (MMcf/d) and 1,250 barrels of condensate on a 22/64th choke with flowing tubing pressure of 13,090 pounds per square inch (PSI) and the rate at the end of the testing period approximated 16 MMcf/d and 838 barrels of condensate on a 23/64th choke with flowing tubing pressure of 7,750 PSI. The well has been shut in while flow test results are being evaluated to assess the decrease in flowing tubing pressure. Future operations will include additional flow testing to further evaluate the changes in reservoir pressures.

Blueberry Hill is located on Louisiana State Lease 340 in approximately 10 feet of water. McMoRan currently owns a 42.9 percent working interest and a 29.7 percent net revenue interest in the Blueberry Hill well. Upon completion of PXP transaction, McMoRan would own a 90.8 percent working interest and a 62.8 percent net revenue interest in Blueberry Hill.

[CashCowMoo]

http://seekingalpha.com/article/239350-adrian-day-long-on-gas-longer-on-oil

[CashCowMoo]

looking good, I knew it would come back around after that dip

[OilStockReport]

Averaged in some on the dips and feeling very confident here. Today is the highest its been since it's fall from glory around $19 in October. I see this as very bullish.

[CashCowMoo]

Check out their Blackbeard and Davey Jones wells. If you look into it a little bit you will see just how huge the potential is. My opinion? should be a $50 stock once the area is online.

[OilStockReport]

That's what I am betting on....

Our business strategy is to create value through exploration activities and to exploit and develop our existing property base. Our technical and operational expertise is primarily in the Gulf of Mexico. We leverage our expertise by attempting to identify exploration opportunities with high potential. Our exploration strategy is focused on the “deep gas play,” drilling to depths of between 15,000 to 25,000 feet in the shallow waters of the Gulf of Mexico and Gulf Coast area and on the "ultra-deep gas play" of depths below 25,000 feet. Deep gas prospects target large structures above the salt weld (i.e. listric fault) in the Deep Miocene. Ultra-deep prospects target objectives below the salt weld in the Miocene and older age sections that have been correlated to those productive sections seen in deepwater discoveries by other industry participants. When we find commercially exploitable oil or natural gas, a significant advantage to our exploration strategy is that the infrastructure to support the production and delivery of product is in most cases already in place and available. We believe this presents us with a material competitive advantage in bringing our discoveries on line and lowering related development costs.

[CashCowMoo]

I think it will be very bullish by 3Q 2011. If they complete their deep wells that they are wanting to complete its game time.

[OilStockReport]

Looking bullish for next quarter. Anybody buying here?

HIGHLIGHTS

Completed agreements to acquire Plains Exploration & Production Company’s (NYSE: PXP) shallow water Gulf of Mexico (GOM) shelf assets and to issue $900 million in new equity-linked securities to fund future capital expenditures associated with McMoRan’s expanded asset base. Closing of the acquisition and financings is expected by year-end 2010.

Exploration & Development Activities:

Completion and flow test of the Davy Jones #1 discovery well expected to commence in the third quarter of 2011.
Davy Jones offset appraisal well commenced drilling on April 7, 2010 and is currently drilling below 19,900 feet towards a proposed total depth of 29,950 feet.

Blackbeard East ultra-deep exploratory well commenced drilling on March 8, 2010 and is currently drilling below 26,000 feet towards a proposed total depth of 29,950 feet. Analysis of the information obtained to date indicates hydrocarbons in quality reservoir rocks with good porosity and permeability in the Upper and Middle Miocene below the salt weld.

Lafitte ultra-deep exploratory well commenced drilling on October 3, 2010 and is currently drilling below 3,300 feet towards a proposed total depth of 29,950 feet.

Wireline logs at Blueberry Hill indicated that the deep gas well encountered 105 net feet of hydrocarbon bearing sands with exceptional porosity in the Miocene. Completion activities are under way with first production expected in the first quarter of 2011.

Near-term drilling includes three additional exploratory wells at the Boudin, Hurricane Deep and Platte prospects.

Third-quarter 2010 production averaged 146 Million cubic feet of natural gas equivalents per day (MMcfe/d) net to McMoRan, compared with 215 MMcfe/d in the third quarter of 2009. Average daily production for 2010 is expected to approximate 160 MMcfe/d net to McMoRan, including 140 MMcfe/d in the fourth quarter of 2010.

Operating cash flows totaled $28.2 million for the third quarter of 2010 and $119.7 million for the nine months ended September 30, 2010.

Capital expenditures totaled $58.8 million in the third quarter of 2010 and $160.3 million for the nine months ended September 30, 2010. McMoRan expects capital expenditures to approximate $220 million for the year.

Cash at September 30, 2010 totaled $180.2 million.

McMoRan Exploration Co. (NYSE: MMR) today reported a net loss applicable to common stock of $25.3 million, $0.26 per share, for the third quarter of 2010 compared with a net loss of $51.9 million, $0.60 per share, for the third quarter of 2009.

[OilStockReport]

$15-16 seems to be the new base. A consolidation after a move from the $10-12 range is not unreasonable. Going to consider this one for the portfolio.

We engage in the exploration, development and production of oil and natural gas offshore in the Gulf of Mexico and onshore in the Gulf Coast area. Our exploration strategy is focused on the "deep gas play," drilling to depths of 15,000 to 25,000 feet in the shallow waters of the Gulf of Mexico and Gulf Coast area to target large structures in the Deep Miocene, and on the “ultra-deep gas play” below 25,000 feet. We have one of the largest acreage positions in the shallow waters of these areas, which are our regions of focus. Our focused strategy enables us to capitalize on our geological and technical capabilities, and our more than 35 years of operating experience in this region. We also believe that our scale of operations in the Gulf of Mexico allows us to realize certain operating synergies and provides a strong platform from which to pursue our business strategy. Our oil and gas operations are conducted through MOXY, our principal operating subsidiary.

[was pennytrader]

I agree completely. I'll be back in for sure, just had a feeling once that PR came out it was gonna drop a bit. Maybe 14 or 15? Will keep watching for a bargain price.

[CashCowMoo]

Thats the only reason its dropping, the Blackbeard and Davey Jones wells are going to be great. It will recover.

[was pennytrader]

Had to bail till the price drop is done here...did not expect to see dilution. Lots of potential in the future, hopefully it will settle down in a few days.

[CashCowMoo]

Im going to fix up the ibox once I get approved for this.

[CashCowMoo]

I just need one more post after this one lol

[CashCowMoo]

They have a lot of potential, not to mention it is NYSE.

[was pennytrader]

I'd say not that many. Looking for a double within 6 months.

[CashCowMoo]

hey all, how many people do we have here watching this?

[was pennytrader]

Pull back already...I want some.

[DaveinHackensack]

I got stopped out of this today at $10.59. I used a 9% trailing stop here, but I should have increased that after yesterday's drop, considering how volatile this stock has been. I will keep an eye on this and may short it again.

[DaveinHackensack]

Shorted MMR today at $10.63. Went into a little more detail on that here: http://steamcatapult.com/2010/06/02/new-short-position-mmr/

[Picassa]

TER: In light of that, are there some companies with significant offshore projects that people should perhaps get out of their portfolios?

MB: Many of these companies could be fine, and I'm still a big fan of a lot of the offshore drillers. I would let the market tell you what to sell, because we could be wrong. For instance, I recently recommended McMoRan Exploration Co. (NYSE:MMR).

They're not deep water; they're shallow water, but they have a really exciting new gas discovery; a great big natural gas field. This is a sub-salt discovery, so it's much deeper than the previous shallow shelf drilling. This area was drilled to pieces down to about 16,000 feet. But nobody went any deeper than that. Even though they're not deepwater drillers, McMoRan's share price plummeted after the disaster, and I was really concerned. I had a 25% trailing stop on it, though, and we recently hit it.

http://seekingalpha.com/article/207324-opportunities-in-domestic-oil-service-companies-matt-badiali

[PGG76109]

Wow big day wish I had gotten in on this way before three weeks ago around 7 but boy it looks good right now. Just wish I had gotten way more. Small beans Oh well . Yes pun intended hoping beans grow. PG

[mlkrborn]

McMoRan, Energy XXI Announce "Major" Gas Discovery



FOXBusiness



McMoRan Exploration (MMR) and Energy XXI (EXXI) announced a “major” discovery of gas in the Gulf of Mexico on Monday.

The two companies have found gas-bearing sands in the Davy Jones ultra-deep prospect. Approximately 135 net feet of hydrocarbon bearing sands are available in the prospect, which was drilled 28,263 feet.

There are plans to increase the depth of the well to 29,000 feet.

McMoRan's co-chairman, James Moffett, said in a statement that the well’s find is “important” and “redefining the subsurface geologic landscape below 20,000 feet on the Shelf of the Gulf of Mexico.”

Shares of McMoRan jumped 51% on the news, while Energy XXI added 33% to $3.50.

[moneytalksbswalks]

MMR is very close to completing drilling, if not already complete. They may be testing results as we speak.
This well could contain the equivalent of 1B barrels of oil of Natural Gas. Do the math. I'm talking TRILLIONS of $$$$ worth.

Moffett is the Einstein of mining and exploration.
This one should be fun to watch.

GLTYA

[frenchee]

Insider Transactions by Date
Date Name
Title Action Shares Price Value
4/25/08 KLEINERT GLENN A CEO Sold 4,665 $28.02 $130,702
3/03/08 MESTAYER SUZANNE T UT Bought 1,000 $17.35 $17,350
2/11/08 DAY ROBERT A UT Bought 500,000 $16.13 $8,063,556
2/08/08 MESTAYER SUZANNE T UT Bought 1,246 $15.97 $19,898
1/25/08 DAY ROBERT A UT Bought 1,115,000 $13.72 $15,296,833
11/05/07 RANKIN B M JR UT Bought 6,500 $12.54 $81,500
11/02/07 DAY ROBERT A UT Bought 100,000 $12.4 $1,240,000

[frenchee]

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[MrSparex]

Yep...
That should show up on a few peoples alerts

[frenchee]

McMoRan has some negative divergences between price trend and its momentum indicators. Looks like a short-term swing top will be put in sometime next week. See daily charts in iBox.

[MrSparex]

Yes...that would make for a good chart.

[frenchee]

long as McMoRan stays above its 21-day SMA I'm positive on it...

[frenchee]

Nice positive divergences between price trend and its momentum indicators...

[frenchee]

MMR Daily Charts

[MrSparex]

I didn't...but I agree that is very good to see

[hamilton]

I trust you saw the 500K share buy last week by the co-chairman. Bullish.

[MrSparex]

It better build a base...or face a huge sell off

[MrSparex]

I like the chart.