McMoRan Exploration Co. (NYSE: MMR):
Exploration & Development Activities:
- Completion activities of the Davy Jones No. 1 discovery well are in an advanced stage with flow testing expected in the first quarter of 2012.
- Initial production expected shortly after a successful flow test.
- Completion and flow testing of Davy Jones No. 2 well expected in the second half of 2012.
- Preparing to log section below 30,800 feet.
- Exploration results to date indicate updip potential in the Miocene (178 net feet of hydrocarbons) above 25,000 feet and downdip potential in the Oligocene (Frio) below 30,000 feet.
- Exploration results indicated 211 net feet of possible productive sands, including 56 net feet in the Cris-R section of the Lower Miocene and 40 net feet in the Frio section.
- Drilling below 32,400 feet to a proposed total depth of 33,000 feet to evaluate Oligocene and potential Eocene objectives.
Blackbeard West No. 2
- Commenced drilling on November 25, 2011. Drilling below 11,700 feet with a proposed total depth of 26,000 feet. Targeting Miocene aged sands.
- Operations commenced on December 31, 2011. Exploratory well has a proposed total depth of 29,000 feet and is targeting Eocene and Paleocene objectives below the salt weld.
- Davy Jones
- Fourth-quarter 2011 production averaged 170 million cubic feet of natural gas equivalents per day (MMcfe/d) net to McMoRan. Full-year 2011 daily production averaged 187 MMcfe/d net to McMoRan.
- Excluding production from Davy Jones which will be incorporated following the pending flow test, average daily production for 2012 is expected to approximate 130 MMcfe/d net to McMoRan, including 155 MMcfe/d in first quarter 2012. Expect to increase 2012 production estimates following a successful flow test at Davy Jones.
- Operating cash flows totaled $48.5 million for the fourth quarter of 2011, including $56.6 million in abandonment expenditures, $39.1 million in insurance proceeds and $2.5 million in working capital sources.
- Reached settlement with insurance underwriters to finalize all outstanding claims from the 2008 hurricane events and recorded $39.1 million in gains associated with final settlement and other insurance reimbursements during the fourth quarter of 2011.
- Capital expenditures totaled $105.6 million in the fourth quarter of 2011 and $509.5 million for the twelve months ended December 31, 2011.
- Cash at December 31, 2011 totaled $568.8 million.
- Year-end 2011 proved reserves of oil, natural gas and natural gas liquids totaled 255.8 billion cubic feet of natural gas equivalents (Bcfe) based on independent reservoir engineers’ preliminary estimates. Amounts exclude pending results from ultra-deep activities.
McMoRan Exploration Co. (NYSE: MMR) today reported net income applicable to common stock of $28.4 million, $0.16 per diluted share, for the fourth quarter of 2011 compared with a net loss applicable to common stock of $84.3 million, $0.83 per share, for the fourth quarter of 2010.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV