McMoRan Exploration Posts 1Q Loss

Revenue tumbled 67 percent to $97.4 million, down from $295.5 million last year, amid a significant decline in energy prices. McMoRan realized an average gas price of $4.88 per thousand cubic feet, down from $9.06 a year ago, and an average oil price of $40.91 per barrel, down from $97.40. Analysts expected an average revenue of $111.3 million.

The company added that its first-quarter production fell to an average of 198 mmcfe, compared with 294 mmcfe per day in the same quarter last year. Current production is around 200 mmcfe per day. McMoRan expects second quarter production fall further to 180 mmcfe per day due to downtime at the Flatrock Field, which is undergoing planned facility expansion, maintenance and remediation activities.

McMoRan said it continues to work on the completion and testing of its Blackbeard West ultra-deep exploratory well, which it operates and owns a 32.3 percent working interest in. The geological data gathered from below 30,000 feet from this well, which is temporarily abandoned and not yet fully evaluated, is being used to enhance existing prospects and develop other ultra-deep opportunities, such as drilling in the Blackbeard area, the company said.

At the end of March, McMoRan's investment in Blackbeard West totaled $31.2 million. Plains Exploration & Production Co. and Energy XXI (Bermuda) Ltd. hold a 35 percent and 20 percent stake, respectively.