McMoRan Exploration Co. updated its exploration and development activities, including positive drilling results at Flatrock and Cottonwood Point. The Flatrock exploratory prospect at South Marsh Island Block 212 commenced on March 27, 2007, and is currently drilling below 15,000 feet with a proposed total depth of 16,500 feet.

Wireline logs have indicated 22 net feet of hydrocarbon bearing sands in the Rob-L section. Casing has been set to protect this zone. Additionally, log-while-drilling tools have indicated three more resistive zones approximating 190 net feet over an approximate 330 foot gross interval. These zones will be evaluated with wireline logs.

The Flatrock well is the first well drilled in the OCS 310/Louisiana State Lease 340 area by McMoRan or others to encounter multiple apparent hydrocarbon bearing sands in the Rob-L section, several of which are above the well’s primary objective. The Flatrock prospect is three miles north and down dip of the Hurricane discovery in South Marsh Island Block 217, indicating that the Flatrock Rob-L hydrocarbon bearing zones must be structurally or stratigraphically separated from the up dip Hurricane Rob-L production. This information has significant implications in an area where McMoRan has a number of additional drilling opportunities.

McMoRan plans to continue drilling the Flatrock well to evaluate additional Rob-L and Operc objectives and may elect to deepen the well below 16,500 feet. McMoRan has a 25.0 percent working interest and an 18.8 percent net revenue interest in the Flatrock well. If successful, the well could be brought on production quickly utilizing existing infrastructure in the area. Flatrock would be McMoRan’s eighth successful well in the OCS 310/Louisiana State Lease 340 area.

The Cottonwood Point exploratory prospect at Vermilion Block 31 commenced on March 1, 2007, and is currently drilling below 14,400 feet with a proposed total depth of 21,000 feet. Logwhile- drilling tools have indicated approximately 60 net feet of resistivity in three sands, indicating the presence of potential hydrocarbons. The well will be drilled to its next casing point and logged with wireline tools to evaluate these potentially productive zones.

McMoRan has a 15.0 percent working interest and an 11.3 percent net revenue interest in the Cottonwood Point well. The Cas exploratory well at South Timbalier Block 70 commenced drilling on January 30, 2007, and is drilling ahead with a planned true vertical depth of 25,000 feet. The Cas prospect is located in approximately 65 feet of water. McMoRan has rights to 5,000 gross acres in this area. McMoRan has a 15.0 percent working interest and a 12.4 percent net revenue interest.