McMoRan Exploration Co. reported continuing progress to flow test the Davy Jones No. 1 well on South Marsh Island Block 230. As previously reported, McMoRan saw positive pressure response from the Wilcox "D" sand which was perforated on March 24, 2012. On March 26, 2012, McMoRan attempted to perforate the Wilcox "C" sand. As the perforating gun was being removed from the hole, the well began to flow. When the gun was brought to the surface, it was determined that the gun did not fire in the Wilcox "C" sand from what appears to be a simple disconnection of the detonator cord. McMoRan plans to use a new perforating gun to complete the testing of the Wilcox "C" sand.

Currently, the test is ongoing from only the Wilcox "D" sand, which resulted in the flare shown in the exhibit attached. The flow from the "D" sand is being affected by considerable debris in the 5 inch liner, from what McMoRan believes to be residual drilling fluid from drilling of the well. Results of a clean flow test, as opposed to the current test hampered by debris, will be announced as further progress is achieved and flow rates are measurable. McMoRan will provide updates as completion operations progress.

Tags: McMoRan Exploration Co.