New Orleans-based independent McMoRan Exploration Co.’s test results on an exploratory well offshore Louisiana indicate it has the potential of producing 50 MMcfe/d. Production is scheduled to begin in the third quarter.

The test on the Louisiana State Lease 340, also known as the Mound Point Offset, was drilled to a total depth of 19,000 feet during the second quarter. Initial testing indicated a flow rate of 22.3 MMcf/d, 413 bbl/d of condensate and 470 barrels of water on a 20/64ths choke. Flowing tubing pressure was 11,342 pounds per square inch (psi) and 13,229 pounds psi shut-in tubing pressure at the end of the test period.

The Mound Point Offset well is located six miles northeast of McMoRan’s JB Mountain discovery. Initial production from the JB Mountain well began in June 2003, but sustained rates have yet to be achieved, and McMoRan said the operator is “taking steps to address start-up issues associated with delivering gas to the pipelines.”

Production rates at JB Mountain are expected to be limited until the end of this year, when additional facilities are expected to be completed. Plans for the next Mound Point well also are being developed.

The JB Mountain and Mound Point deep-gas prospects are located in water depths of 10-20 feet in an area where McMoRan has rights to an approximate 80,000-acre area and is a participant in an exploration program that includes portions of Outer Continental Shelf 310 and portions of the adjoining Louisiana State Lease 340.

McMoRan owns a 55% working interest and a 38.8% net revenue interest in the JB Mountain prospect and a 30.4% working interest and a 21.6% net revenue interest in the Mound Point Offset prospect.

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