McMoRan (MMR) Exploration Co., Phosphate Resource PartnersLimited Partnership (PLP) and its administrative managing generalpartner IMC Global Inc. (IGL) said PLP and IGL have resolved anddismissed with prejudice their lawsuit against MMR and four formerdirectors of Freeport-McMoRan Inc.

MMR agreed to buy, effective Oct. 1, 1999, PLP’s 47% interest inthe MMR Exploration Program, which includes three producing oil andgas fields plus an inventory of exploration prospects and leasesfor $32 million in cash. Effective Oct. 1, 1999, PLP will have nofurther participation or funding obligations in the MMR ExplorationProgram, which will be held 95% by MMR and 5% by a private party.

“Our purchase of PLP’s interests in the exploration program withits producing properties and exploration prospects will expandMMR’s reserve base and cash flows from properties in which MMRalready participates,” said MMR CEO Richard C. Adkerson. “Theseproperties provide current value and the potential for significantfuture incremental value for MMR and its shareholders.”

The producing properties purchased from PLP include itsinterests in the Vermilion Block 159 field (net revenue interest of38%), the West Cameron Block 616 field (net revenue of 38%) and theBrazos Block A-19 field (net revenue of 13%). The purchasedexploration prospects and leases are all in the offshore Gulf ofMexico and onshore Gulf Coast area.

MMR is an independent public company engaged in the exploration,development and production of oil and gas offshore in the Gulf ofMexico and onshore in the Gulf Coast area; and the mining,purchasing, transporting, terminaling, and marketing of sulfur.Phosphate Resource Partners Limited Partnership is engaged in theproduction and sale of phosphate crop nutrients and animal feedingredients through its joint-venture partnership, IMC-Agrico Co.,formed in 1993 between PLP and IGL. PLP’s ownership of IMC-Agricois 41.5 percent.

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