McMoRan estimates 546.7 Bcfe of reserves in Louisiana subsalt discovery

Houston (Platts)--20 Feb 2013 1114 am EST/1614 GMT

McMoRan Exploration said Wednesday that an independent review of a ultra-deep onshore find in southern Louisiana has estimated gross proved, probable and possible oil and gas reserves of 546.7 Bcf-equivalent.

Of that, 141.7 Bcfe, including 12.9 Bcfe of net proved reserves, would be net to McMoRan, the New Orleans-based independent exploration and production company said in a statement. McMoRan is participating in the Lineham Creek well with a 36% working interest. Chevron, the operator, holds 50%. The other working interest holders are Energy XXI, with 9%, and W.A. "Tex" Moncrief Jr., with 5%.

The estimates are associated with interim results from the sands encountered above 24,000 feet in the Lineham Creek ultra-deep exploratory well located onshore in southern Louisiana, the McMoRan statement added.

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"These are the first of what we hope will be sizeable reserves from the sub-salt, ultra-deep trend onshore and in the shallow waters of the Gulf of Mexico," James Moffett, co-chairman, CEO and president of McMoRan said in the statement.

Lineham Creek, in Cameron Parish, Louisiana, is currently drilling below 27,600 feet to evaluate further, and has a proposed total depth of 29,000 feet, McMoRan said.

--Katharine Fraser,
--Edited by Valarie Jackson,

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