McMoRan Exploration Co. Announces Successful Production Test at Flatrock No. 4 and...

McMoRan Exploration Co. Announces Successful Production Test at Flatrock No. 4 and Plans to Pursue Completion at South Timbalier Block 168

NEW ORLEANS--(Business Wire)--
McMoRan Exploration Co. (NYSE: MMR) today updated latest
developments at the Flatrock field and the South Timbalier Block 168
ultra-deep exploratory well.

McMoRan announced today a successful production test at Flatrock
No. 4 (location "C"). The production test, which was performed in the
primary Rob-L section, indicated a gross flow rate of approximately
109 million cubic feet of natural gas per day (MMcf/d), 2,500 barrels
per day of condensate and zero barrels of water, approximately 124
MMcfe/d (23 MMcfe/d net to McMoRan), on a 50/64th choke with flowing
tubing pressure of 8,170 pounds per square inch. This is the same
Rob-L sand currently producing at an approximate gross rate of 100
MMcfe/d in the Flatrock No. 2 well, which commenced production in July
2008. McMoRan and its partners will use the results of the production
test to determine the optimal flow rate for the well, which is
expected to begin production by year-end 2008 using the Tiger Shoal
facilities in the immediate area.

Since the initial discovery in July 2007, McMoRan has drilled five
successful wells at Flatrock on South Marsh Island Block 212 in the
OCS 310/Louisiana State Lease 340 area in approximately 10 feet of
water. The first three wells are currently producing at an aggregate
gross rate of approximately 170 MMfcfe/d, 32 MMcfe/d net to McMoRan.
Wireline logs indicated 100 net feet of pay (based on new data) in the
Rob-L section of the Flatrock No. 5 development well (location "E") in
October 2008. The No. 5 well is drilling ahead at 15,800 feet towards
a proposed total depth of 18,400 feet and is targeting deeper Rob-L
and Operc sands. The No. 6 delineation well, located on South Marsh
Island Block 217 is expected to commence drilling in the fourth
quarter of 2008. The well will target the deeper Operc and possibly
penetrate the upper Gyro section of the Flatrock/Hurricane Deep
structure. Successful wells can be brought on line quickly using the
Tiger Shoal facilities in the immediate area.

McMoRan controls approximately 150,000 gross acres in the Tiger
Shoal/Mound Point area (OCS 310/Louisiana State Lease 340) and has
multiple additional exploration opportunities with significant
potential on this large acreage position. McMoRan has a 25.0 percent
working interest and an 18.8 percent net revenue interest in Flatrock.
Plains Exploration & Production Company (NYSE: PXP) holds a 30.0
percent working interest.

McMoRan also announced it plans to complete and test the South
Timbalier Block 168 No. 1 ultra-deep exploratory well (formerly known
as Blackbeard West No. 1). As previously reported, the well was
drilled to a total depth of 32,997 feet in October 2008 and logs
indicated four potential hydrocarbon bearing zones below 30,067 feet
that require further evaluation. The well will be temporarily
abandoned while the necessary long-lead time completion equipment is
procured for this anticipated high pressure test. McMoRan will
continue to review additional drilling opportunities on the flanks of
the structure and on other acreage it holds in the ultra-deep trend.
The South Timbalier Block 168 well is located on the top of the
targeted structure. Seismic data on the prospect indicates the
potential for significantly thicker sands on the flanks of the
structure as confirmed in recent major deepwater discoveries. Based on
information obtained to date in the South Timbalier Block 168 well,
McMoRan believes additional drilling on the flanks could result in
significant reserve potential.

South Timbalier Block 168 is located in 70 feet of water
approximately 115 miles southwest of New Orleans. McMoRan operates the
well, which is the deepest ever drilled below the mud line in the Gulf
of Mexico, and owns a 32.3 percent working interest. McMoRan's
partners, PXP and Energy XXI (NASDAQ: EXXI), hold a 35 percent working
interest and 20 percent working interest, respectively.

McMoRan Exploration Co. is an independent public company engaged
in the exploration, development and production of oil and natural gas
offshore in the Gulf of Mexico and onshore in the Gulf Coast area.
McMoRan is also pursuing plans for the development of a multifaceted
energy facility at the MEPH(TM), including the potential development
of a facility to receive and process liquefied natural gas and store
and distribute natural gas. Additional information about McMoRan and
the MPEH(TM) project is available on its internet website
www.mcmoran.com and at www.mpeh.com.

CAUTIONARY STATEMENT: This press release contains certain
forward-looking statements regarding various oil and gas discoveries,
oil and gas exploration, development and production activities,
anticipated and potential production and flow rates, and the economic
potential of properties. Accuracy of these forward-looking statements
depends on assumptions about events that change over time and is thus
susceptible to periodic change based on actual experience and new
developments. McMoRan cautions readers that it assumes no obligation
to update or publicly release any revisions to the forward-looking
statements in this press release and, except to the extent required by
applicable law, does not intend to update or otherwise revise these
statements more frequently than quarterly. Important factors that
might cause future results to differ from these forward-looking
statements include: adverse conditions such as high temperature and
pressure that could lead to mechanical failures or increased costs;
variations in the market prices of oil and natural gas; drilling
results; unanticipated fluctuations in flow rates of producing wells;
oil and natural gas reserves expectations; the ability to satisfy
future cash obligations and environmental costs; as well as other
general exploration and development risks and hazards. These and other
factors are more fully described in McMoRan's 2007 Annual Report on
Form 10-K on file with the Securities and Exchange Commission (SEC).

The SEC permits oil and gas companies in their filings with the
SEC to disclose only proved reserves that a company has demonstrated
by actual production or conclusive formation tests to be economically
and legally producible under existing economic and operating
conditions. We use certain phrases and terms, such as "reserve
potential" and "exploration potential," which the SEC's guidelines
strictly prohibit us from including in filings with the SEC. We urge
you to consider closely the disclosure of proved reserves included in
McMoRan's Annual Report on Form 10-K for the year ended December 31,
2007.

McMoRan Exploration Co.
Financial Contact:
David P. Joint, 504-582-4203
or
Media Contact:
William L. Collier, 504-582-1750

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