McMoRan Exploration Co. Reports First-Quarter 2009 Results

NEW ORLEANS--(Business Wire)--
McMoRan Exploration Co. (NYSE: MMR):

HIGHLIGHTS

* First-quarter 2009 production averaged 198 Million cubic feet of natural gas
equivalents per day (MMcfe/d) net to McMoRan. An estimated 45 MMcfe/d is
currently restricted by third party pipelines affected by the September 2008
hurricanes. Average daily production for 2009 is expected to approximate 215
MMcfe/d net to McMoRan, including 180 MMcfe/d in second quarter 2009.
* Four wells in the Flatrock field are currently producing at a gross rate of
approximately 235 MMcfe/d (44 MMcfe/d net to McMoRan). Completion efforts are
in-progress at Flatrock Nos. 5 and 6, with first production from both wells
expected by mid-year 2009.
* McMoRan currently has three deep gas exploration prospects in-progress:

* Ammazzo on South Marsh Island Block 251
* Cordage on West Cameron Block 207
* Blueberry Hill sidetrack on Louisiana State Lease 340

* Near term exploratory drilling plans include the Sherwood deep gas prospect on
High Island Block 133. McMoRan also continues to evaluate additional ultra-deep
opportunities.
* Operating cash flows totaled $33.8 million for the first quarter of 2009,
including approximately $20 million ($18.7 million net of partners` share) in
partial payments for insurance proceeds related to the September 2008 hurricane
events.
* Capital expenditures totaled $29.2 million in the first quarter of 2009 and
are expected to approximate $200 million for the year, $30 million lower than
the January 2009 estimate.
* Cash at March 31, 2009 totaled $95.4 million with no borrowings under
McMoRan`s revolving bank credit facility.McMoRan`s borrowing base
re-determination was completed in April and the aggregate amount available was
reduced from $400 million to $235 million.Total debt was $375 million at March
31, 2009, including $75 million in convertible senior notes.

McMoRan Exploration Co. (NYSE: MMR) today reported a net loss applicable to
common stock of $63.2 million, $0.90 per share, for the first quarter of 2009
compared with net income applicable to common stock of $32.0 million, $0.46 per
fully diluted share, for the first quarter of 2008.

First-quarter 2009 results from continuing operations totaled a loss of $59.5
million, including $39.0 million, $0.55 per share, in impairment charges for
certain fields to reduce their net carrying value to fair value and $16.2
million, $0.23 per share, in charges to exploration expense primarily relating
to the Tom Sauk and Gladstone East exploration wells which were determined to be
non-commercial in the first quarter of 2009. McMoRan`s first quarter results
also include an $18.1 million mark-to-market realized gain on McMoRan`s oil and
gas derivative contracts and an $18.7 million gain associated with its share of
the initial payment of insurance proceeds related to the September 2008
hurricanes. Additional insurance proceeds are expected as described below.
McMoRan's net income from its continuing operations for the first quarter of
2008 totaled $37.2 million, including an unrealized loss of $41.6 million, $0.49
per fully diluted share, for mark-to-market charges on McMoRan`s oil and gas
derivative contracts.

SUMMARY FINANCIAL TABLE*

First Quarter
2009 2008
(In Thousands, Except Per
Share Amounts)
Revenues $ 97,376 $ 295,476
Operating income (loss) (49,139 ) 55,825
Net income (loss) from continuing operations (59,492 ) 37,231
Net loss from discontinued operations (1,067 ) (856 )
Net income (loss) applicable to common stock(a) $ (63,241 ) $ 32,009
Diluted net income (loss) per share:
Continuing operations $ (0.88 ) $ 0.47
Discontinued operations (0.02 ) (0.01 )
Applicable to common stock(a) $ (0.90 ) $ 0.46
Diluted average common shares outstanding 70,475 85,154 (b)
Operating cash flows $ 33,794 $ 172,816
EBITDAX(c) $ 67,929 $ 228,159
Capital Expenditures $ 29,163 $ 51,379

a.After preferred dividends.

b.Assumes full conversion of McMoRan`s 6% Convertible Senior Notes, 5¼%
Convertible Senior Notes, 6.75% Mandatory Convertible Preferred Stock, and the
dilutive effect of outstanding stock options and warrants into 31.2 million
shares.

c.See reconciliation of EBITDAX to net income (loss) applicable to common stock
on page III.

*If any in-progress well or unproved property is determined to be non-productive
or no longer meets the capitalization requirements under applicable accounting
rules after the date of this release but prior to the filing of McMoRan`s 2009
Form 10-Q, the related costs incurred through March 31, 2009 would be charged to
expense in McMoRan`s first-quarter 2009 financial statements.McMoRan`s
investment in its four in-progress or unproved wells totaled $53.1 million at
March 31, 2009.

James R. Moffett and Richard Adkerson, McMoRan`s Co-Chairmen, said, "We continue
to focus on opportunities to build asset values through exploring deep prospects
in shallow waters on the Shelf of the Gulf of Mexico.Our drilling activities
have confirmed that large hydrocarbon bearing structures are present below
15,000 feet on the Gulf of Mexico Shelf.The data we have gained from the South
Timbalier Block 168 ultra-deep well drilled below 30,000 feet provides important
information that is allowing us to correlate the depositional trends from the
onshore and the deepwater to the Shelf.We have multiple high potential deep gas
and ultra-deep targets and are developing plans to test these objectives.We will
prudently manage our capital expenditures in response to current market
conditions while remaining focused on these exciting exploration opportunities."

PRODUCTION AND DEVELOPMENT ACTIVITIES

First-quarter 2009 production averaged 198 MMcfe/d net to McMoRan, compared with
294 MMcfe/d in the first quarter of 2008. McMoRan continues to work to restore
production shut-in as a result of the September 2008 hurricanes in the Gulf of
Mexico. Current production approximates 200 MMcfe/d and is expected to average
approximately 180 MMcfe/d in the second quarter of 2009, which will be affected
by downtime at the Flatrock Field for planned facility expansion, maintenance
and remediation activities. An estimated 45 MMcfe/d of McMoRan`s production
continues to be constrained by outages at third party facilities. Based on
recent information from operators of these facilities, daily production is
expected to average 215 MMcfe/d for the year. These production estimates are
dependent on the timing of restoring downstream pipelines and facilities damaged
by the September 2008 hurricanes and production performance from existing wells
and new wells being completed.

Following the Flatrock discovery in OCS 310 on South Marsh Island Block 212 in
July 2007, McMoRan has drilled five additional successful wells in the field.
Four wells are currently producing at a gross rate of approximately 235 MMcfe/d
(44 MMcfe/d net to McMoRan). Production from these wells will be temporarily
shut in during the second quarter for planned facility expansion, maintenance
and remediation activities. Completion efforts are under way at Flatrock Nos. 5
and 6, with first production from both wells expected by mid-year 2009.
Following these activities, McMoRan expects the gross production rate from the
six wells in the field to approximate 335 MMcfe/d, 63 MMcfe/d net to McMoRan.
Below is a status report on activities in the area:

Flatrock Wells Total Pay Net Feet Status
Intervals of Pay(1)
No. 1 (#228) 8 260 Producing from Operc section
Discovery Well
No. 2 (#229) 8 289 Producing from Primary Rob-L sand
Delineation Well
No. 3 (#230) 8 256 Producing from Operc section
Delineation Well
No. 4 (#231) 2 116 Producing from Primary Rob-L sand
Development Well
No. 5 (#232) 8 155 Completing:
Development Well First production expected mid-year 2009
No. 6 (#233) 2 40 Completing:
Delineation Well First production expected mid-year 2009

(1)Confirmed with wireline logs.

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.

EXPLORATION ACTIVITIES

McMoRan`s exploration strategy is focused on the "deep gas play," drilling to
depths of 15,000 to 25,000 feet in the shallow waters of the Gulf of Mexico and
Gulf Coast area to target large structures in the Deep Miocene, and on the
"ultra-deep gas play" below 25,000 feet. McMoRan is one of the largest acreage
holders on the Shelf of the Gulf of Mexico and onshore in the Gulf Coast area
with rights to approximately 1.2 million gross acres including 227,000 gross
acres associated with the ultra-deep trend. McMoRan has three deep gas prospects
in-progress and near term drilling plans include the Sherwood deep gas
exploratory prospect on High Island Block 133. McMoRan also continues to
evaluate additional ultra-deep opportunities.

The Ammazzo deep gas exploratory prospect in 25 feet of water commenced drilling
on November 22, 2008 and is drilling below 21,600 feet towards a proposed total
depth of 24,500 feet. McMoRan is operating the well and holds a 25.9 percent
working interest and 21.1 percent net revenue interest. McMoRan`s partners, PXP
and Energy XXI (NASDAQ: EXXI), hold a 28.1 percent working interest and 16.0
percent working interest, respectively. McMoRan`s investment in Ammazzo totaled
$18.4 million at March 31, 2009. McMoRan was high bidder on South Marsh Island
Block 256, which is a southern offset to the Ammazzo prospect, at the March 2009
Minerals Management Service Central Gulf of Mexico Lease Sale 208. McMoRan was
also high bidder on an ultra-deep lease located on Ship Shoal Block 185.

The Cordage deep gas exploratory prospect commenced drilling on March 18, 2009
and is drilling below 12,200 feet towards a proposed total depth of 19,500 feet.
The Cordage prospect, which is located in 50 feet of water on West Cameron Block
207, is targeting Rob-L and Rob-M (Operc) sands in the Middle Miocene. McMoRan
has rights to a 50.0 percent working interest and a 40.2 percent net revenue
interest in the well. Mariner Energy, Inc. (NYSE: ME) is the operator of the
well and holds a 50 percent working interest. McMoRan`s investment in Cordage
totaled $3.4 million at March 31, 2009. Upon completion of operations at
Cordage, the rig will be moved to the Sherwood prospect on High Island Block 133
to commence exploration drilling activities.

On March 29, 2009, McMoRan reentered an existing wellbore and commenced
sidetracking operations at the Blueberry Hill deep gas prospect located on
Louisiana State Lease 340 in 10 feet of water. The well has a proposed total
depth of 24,000 feet. As previously reported, in February 2005 McMoRan
encountered four hydrocarbon bearingsands in the Gyro section below 22,200 feet
in the original Blueberry Hill exploratory well. Completion efforts in 2007 were
unsuccessful because of blockage above the perforated intervals. The sidetrack
currently in-progress is targeting the same Gyro sands, which McMoRan believes
could be better developed in a down dip position on the flank of the structure.
McMoRan has a 46.8 percent working interest and a 32.3 percent net revenue
interest in the well. McMoRan`s investment in Blueberry Hill totaled $23.6
million at March 31, 2009, substantially all of which was incurred prior to
2008.

McMoRan and its partners are continuing engineering planning for the completion
and testing of the Blackbeard West ultra-deep exploratory well on South
Timbalier Block 168, which is temporarily abandoned and not yet fully evaluated.
The geological data below 30,000 feet derived from the Blackbeard West well is
being incorporated into McMoRan`s exploration concepts to enhance existing
prospects and develop additional ultra-deep opportunities on the Shelf,
including potential drilling locations in the Blackbeard area. McMoRan is
operator and owns a 32.3 percent working interest in the Blackbeard West well
and PXP and Energy XXI, hold a 35 percent working interest and 20 percent
working interest, respectively. McMoRan`s investment in Blackbeard West totaled
$31.2 million at March 31, 2009.

REVENUES

McMoRan`s first-quarter 2009 oil and gas revenues totaled $95.1 million,
compared to $291.9 million during the first quarter of 2008. During the first
quarter of 2009, McMoRan`s sales volumes totaled 12.2 Bcf of gas, 749,200
barrels of oil and condensate and 1.1 Bcfe of plant products, compared to 17.9
Bcf of gas, 1,089,100 barrels of oil and condensate and 2.5 Bcfe of plant
products in the first quarter of 2008. McMoRan`s first-quarter comparable
average realizations for gas were $4.88 per thousand cubic feet (Mcf) in 2009
and $9.06 per Mcf in 2008; for oil and condensate McMoRan received an average of
$40.91 per barrel in first-quarter 2009 compared to $97.40 per barrel in
first-quarter 2008.

CASH, LIQUIDITY AND CAPITAL EXPENDITURES

At March 31, 2009, McMoRan had $95.4 million in cash. Total debt was $375
million at March 31, 2009, including $75 million in convertible senior notes. In
April 2009, McMoRan's bank group completed the semi-annual re-determination of
its borrowing base under its credit facility. The recent decline in natural gas
and oil prices resulted in lower base amounts available under the credit
facility. McMoRan`s borrowing base was revised from $400 million to $235
million. McMoRan currently has no borrowings outstanding on its revolving credit
facility. McMoRan believes the amounts available under its redetermined
borrowing base will be sufficient to manage its operations, working capital
requirements and continued support of the current $100 million in outstanding
letters of credit.

In response to current market conditions, McMoRan continues to identify actions
to reduce capital expenditures, operating and administrative costs and other
cash expenditures. Estimated capital expenditures for 2009 have been reduced to
approximately $200 million, $30 million lower than the January 2009 estimate.
This estimate includes approximately $100 million in exploration costs, $45
million in development costs and $55 million for costs incurred in 2008 that
will be funded in 2009. Capital spending will continue to be driven by
opportunities and will be managed based on available cash and cash flows.
McMoRan may pursue additional partner arrangements to further reduce capital
expenditures.

McMoRan continues to pursue recovery under its insurance programs for costs
associated with the 2008 hurricane events. These costs are expected to be
incurred over several years. In March 2009, McMoRan received an initial payment
of approximately $20 million ($18.7 million net of partners` share) from its
insurers and expects to receive significant additional proceeds associated with
this claim after related expenditures associated with insured losses are
incurred. McMoRan will record gains associated with additional insurance
proceeds as such claim amounts are finalized with its insurers. Abandonment
expenditures, which include scheduled conventional and hurricane related work,
are expected to approximate $80 million in 2009.

DERIVATIVE CONTRACTS

During the first quarter of 2009, McMoRan financially settled 3.4 Bcf of natural
gas and 151,000 barrels of oil that were hedged through swap positions at an
average price of $9.01 per Mcf and $71.93 per barrel, respectively. McMoRan
received $18.1 million in cash for these positions, which was recorded as a gain
in McMoRan`s first quarter 2009 financial results. At March 31, 2009, McMoRan
had a total of 6.5 Bcf of natural gas and 289,000 barrels of oil hedged through
2010 through open swap positions and 4.4 Bcf of natural gas and 175,000 barrels
of oil hedged through 2010 through puts. Following is a summary of open swap and
put positions at March 31, 2009:

Natural Gas Positions (million MMbtu)
Open Swap Positions(1) Put Options(2)
Annual Average Annual Average Total
Volumes Swap Price Volumes Floor Volumes
2009 3.9 $ 8.93 3.2 $ 6.00 7.1
2010 2.6 $ 8.63 1.2 $ 6.00 3.8

Oil Positions (thousand bbls)
Open Swap Positions(1) Put Options(2)
Annual Average Annual Average Total
Volumes Swap Price Volumes Floor Volumes
2009 171 $ 71.73 125 $ 50.00 296
2010 118 $ 70.89 50 $ 50.00 168

(1) Remaining 2009 swaps cover periods April-June and November-December; 2010 swaps cover periods January-June and November-December
(2) Covering periods July-October

These derivative contracts have not been designated as hedges for accounting
purposes. Accordingly, these contracts are subject to mark-to-market fair value
adjustments and unrealized gains and losses are recognized in our operating
results. McMoRan`s first-quarter 2009 results included an unrealized gain of
$0.8 million for mark-to-market accounting adjustments associated with open
derivative contracts based on changes in their respective fair market values
through March 31, 2009. McMoRan`s derivative contracts` fair value after
mark-to-market adjustments was $38.2 million at March 31, 2009.

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. Separate from its oil and gas
operations, McMoRan is also continuing efforts to implement a successful plan to
develop the Main Pass Energy Hub, a multifaceted energy service project,
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 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; anticipated revenues; the economic potential of properties;
estimated exploration and development costs; and the potential Main Pass Energy
HubTM Project.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 2008 Annual Report on Form 10-K on file
with the Securities and Exchange Commission (SEC).

This press release contains a financial measure commonly used in the oil and
natural gas industry but is not defined under GAAP. As required by SEC
Regulation G, reconciliations of these measures to amounts reported in McMoRan`s
consolidated financial statements are in the supplemental schedules of this
press release.

A copy of this release is available on our web site at www.mcmoran.com. A
conference call with securities analysts about the first-quarter 2009 results is
scheduled for today at 10:00 a.m. Eastern Time. The conference call will be
broadcast on the Internet. Interested parties may listen to the conference call
live by accessing the call on "www.mcmoran.com". A replay of the call will be
available through Friday, May 15, 2009.

McMoRan EXPLORATION CO.
STATEMENTS OF OPERATIONS (Unaudited)

Three Months Ended March 31,
2009 2008
(In Thousands, Except Per Share Amounts)
Revenues:
Oil & natural gas $ 95,082 $ 291,946
Service 2,294 3,530
Total revenues 97,376 295,476
Costs and expenses:
Production and delivery costs 49,046 a 55,646
Depletion, depreciation and amortization expense 93,397 b 121,332
Exploration expenses c 28,426 d 6,813
(Gain) loss on oil and gas derivative contracts (18,858 ) 45,231
General and administrative expenses c 12,446 9,012
Start-up costs for Main Pass Energy Hub c 765 1,617
Insurance recoveries (18,707) e -
Total costs and expenses 146,515 239,651
Operating income (loss) (49,139 ) 55,825
Interest expense, net (10,666 ) (17,111 )
Other income (expense), net 329 (627 )
Income (loss) from continuing operations before income taxes (59,476 ) 38,087
Provision for income taxes f (16 ) (856 )
Income (loss) from continuing operations (59,492 ) 37,231
Income (loss) from discontinued operations (1,067 ) (856 )
Net income (loss) (60,559 ) 36,375
Preferred dividends and amortization of convertible preferred stock issuance (2,682 ) (4,366 )
costs
Net income (loss) applicable to common stock $ (63,241 ) $ 32,009

Basic net income (loss) per share of common stock:
Continuing operations $ (0.88 ) $ 0.61
Discontinued operations (0.02 ) (0.02 )
Net income (loss) per share of common stock $ (0.90 ) $ 0.59

Diluted net income (loss) per share of common stock:
Continuing operations $ (0.88 ) $ 0.47
Discontinued operations (0.02 ) (0.01 )
Net income (loss) per share of common stock $ (0.90 ) $ 0.46

Average shares outstanding:
Basic 70,475 53,956
Diluted 70,475 85,154

McMoRan EXPLORATION CO.
FOOTNOTES TO STATEMENTS OF OPERATIONS (Unaudited)

a. Includes hurricane assessment and repair charges totaling $10.8 million in
the quarter ended March 31, 2009.

b. First quarter 2009 includes impairment charges totaling $39.0 million for
proved oil and gas properties. No impairment charges were recorded in the first
quarter of 2008.

c. Non-cash stock-based compensation of the following amounts is included in the
respective expense categories shown below (in thousands):

First Quarter
2009 2008
General and administrative expenses $ 3,120 $ 981
Exploration expenses 3,046 889
Main Pass Energy Hub start-up costs 181 71
Total stock-based compensation cost $ 6,347 $ 1,941

Total stock-based compensation cost includes charges for immediately vested
stock options totaling $2.9 million related to certain stock option awards
granted in the first quarter of 2009. McMoRan `s 2008 stock option grants which
occurred in the first quarter of 2008 were subject to the shareholders of
McMoRan ratifying a new stock incentive plan which was completed at the annual
shareholders` meeting in June 2008.

d. Includes non-productive well costs of $16.2 million for the three months
ended March 31, 2009 primarily relating to the Gladstone East and Tom Sauk
wells.

e. Represents McMoRan`s share of the initial payment of insurance proceeds
related to losses incurred as a result of the September 2008 hurricanes.

f. The 2009 tax provision is determined considering the company`s ability to
utilize net operating losses from prior periods (NOL carry forwards) against
estimated annual taxable income. Tax regulations impose limitations on the
utilization of NOL carry forwards when a defined level of change in the stock
ownership of certain shareholders is exceeded, including ownership changes
resulting from conversion of convertible debt into common stock. No such change
in stock ownership was exceeded or was assessed to be probable of occurring at
March 31, 2009.

McMoRan EXPLORATION CO.
RECONCILATION OF REPORTED AMOUNTS TO NON-GAAP ITEMS (SEE NOTE) (Unaudited)

EBITDAX is a financial measure commonly used in the oil and natural gas industry
but is not a recognized accounting term under accounting principles generally
accepted in the United States of America ("GAAP"). As defined by McMoRan,
EBITDAX reflects the company`s adjusted oil and gas operating income. "EBITDAX"
is derived from net income (loss) from continuing operations before other
(income) expense, interest expense (net), income taxes, start-up costs for the
Main Pass Energy HubTM project, exploration expenses, depletion, depreciation
and amortization expense, stock-based compensation charged to general and
administrative expense, unrealized (gains)/losses on oil and gas derivative
contracts, hurricane-related charges and insurance recoveries. EBITDAX should
not be considered by itself or as a substitute for net income (loss), operating
income (loss), cash flows from operating activities or any other measure of
financial performance presented in accordance with GAAP, or as a measure of
McMoRan`s profitability or liquidity. Because EBITDAX excludes some, but not
all, items that affect net income (loss), the computation of this non-GAAP
financial measure may be different from similar presentations of other companies
including oil and gas companies in our industry. As a result, the EBITDAX data
presented below may not be comparable to similarly titled measures of other
companies.

McMoRan`s management utilizes both the GAAP and non-GAAP results presented in
this news release to evaluate McMoRan`s performance and believes that
comparative analysis of results are useful to investors and other internal and
external users of our financial statements in evaluating our operating
performance, and such analysis can be enhanced by excluding the impact of these
items to help investors meaningfully compare our results from period to period.
The following is a reconciliation of reported amounts from net income (loss)
applicable to common stock to EBITDAX (in thousands):

First Quarter
2009 2008

Net income (loss) applicable to common stock, as reported $ (63,241 ) $ 32,009
Preferred dividends and amortization of convertible 2,682 4,366
preferred stock issuance costs
Loss from discontinued operations 1,067 856
Income (loss) from continuing operations, as reported (59,492 ) 37,231

Other (income) expense (329 ) 627
Interest expense, net 10,666 17,111
Income taxes 16 856
Start-up costs for Main Pass Energy HubTM Project 765 1,617
Exploration expenses 28,426 6,813
Depletion, depreciation and amortization expense 93,397 121,332
Hurricane-related charges included in production and 10,845 -
delivery costs
Stock-based compensation charge to general and 3,120 981
administrative expenses
Insurance recoveries (18,707 ) -
Unrealized (gain) loss on oil & gas derivative contracts (778 ) 41,591
EBITDAX $ 67,929 $ 228,159

McMoRan EXPLORATION CO.
OPERATING DATA (Unaudited)

First Quarter
2009 2008
Sales volumes:
Gas (thousand cubic feet, or Mcf) 12,165,600 17,875,400
Oil (barrels) 749,200 1,089,100
Plant products (Mcf equivalent) a 1,118,100 2,486,300
Average realizations:
Gas (per Mcf) $ 4.88 $ 9.06
Oil (per barrel) 40.91 97.40

a. Results include approximately $5.0 million and $23.9 million of revenues
associated with plant products (ethane, propane, butane, etc.) during the first
quarters of 2009 and 2008, respectively. One Mcf equivalent is determined using
the ratio of six Mcf of natural gas to one barrel of crude oil, condensate or
natural gas liquids.

McMoRan EXPLORATION CO.
CONDENSED BALANCE SHEETS (Unaudited)

March 31, December 31,
2009 2008
(In Thousands)
ASSETS
Cash and cash equivalents $ 95,435 $ 93,486
Accounts receivable 95,327 112,684
Inventories 44,135 31,284
Prepaid expenses 9,159 13,819
Fair value of oil and gas derivative contracts 32,230 31,624
Current assets from discontinued operations, 514 516
primarily restricted cash of $0.5 million
Total current assets 276,800 283,413
Property, plant and equipment, net 932,569 992,563
Restricted investments and cash 33,561 29,789
Sulphur business assets 3,010 3,012
Deferred financing costs 14,769 15,658
Fair value of oil and gas derivative contracts 6,018 5,847
Total assets $ 1,266,727 $ 1,330,282

LIABILITIES AND STOCKHOLDERS` EQUITY
Accounts payable $ 66,924 $ 77,009
Accrued liabilities 79,102 89,565
Accrued interest and dividends payable 17,409 7,586
Current portion of accrued oil and gas reclamation 64,380 103,550
costs
Current portion of sulphur reclamation costs 785 785
Current liabilities from discontinued operations 1,344 1,317
Total current liabilities 229,944 279,812
5¼% convertible senior notes 74,720 74,720
11.875% senior notes 300,000 300,000
Accrued oil and gas reclamation costs 360,245 317,651
Accrued sulphur reclamation costs 22,719 22,218
Other long-term liabilities from discontinued 6,842 6,835
operations
Other long-term liabilities 20,138 20,023
Total liabilities 1,014,608 1,021,259
Stockholders' equity 252,119 309,023
Total liabilities and stockholders' equity $ 1,266,727 $ 1,330,282

McMoRan EXPLORATION CO.
STATEMENTS OF CASH FLOWS (Unaudited)

Three Months Ended
March 31,
2009 2008
(In Thousands)
Cash flow from operating activities:
Net income (loss) $ (60,559 ) $ 36,375
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss from discontinued operations 1,067 856
Depletion, depreciation and amortization 93,397 121,332
Exploration drilling and related expenditures (reimbursements) 16,226 (735 )
Compensation expense associated with stock-based awards 6,347 1,941
Amortization of deferred financing costs 931 1,256
Unrealized (gain) loss on oil and gas derivative contracts (778 ) 41,591
Loss on induced conversion of convertible senior notes - 699
Reclamation expenditures, net of prepayments by third parties (12,351 ) 3,234
Increase in restricted cash (3,772 ) (3,783 )
Other 64 (320 )
(Increase) decrease in working capital:
Accounts receivable 14,697 (38,924 )
Accounts payable and accrued liabilities (12,846 ) 10,035
Prepaid expenses and inventories (8,193 ) 2,204
Net cash provided by continuing operations 34,230 175,761
Net cash used in discontinued operations (436 ) (2,945 )
Net cash provided by operating activities 33,794 172,816

Cash flow from investing activities:
Exploration, development and other capital expenditures (29,163 ) (51,379 )
Acquisition of properties, net - (3,500 )
Net cash used in continuing operations (29,163 ) (54,879 )
Net cash activity from discontinued operations - -
Net cash used in investing activities (29,163 ) (54,879 )

Cash flow from financing activities:
Payments under senior secured revolving credit facility, net - (111,000 )
Dividends paid on convertible preferred stock (2,682 ) (4,755 )
Payments for induced conversion of convertible senior notes - (699 )
Proceeds from exercise of stock options and other - 66
Net cash used in continuing operations (2,682 ) (116,388 )
Net cash activity from discontinued operations - -
Net cash used in financing activities (2,682 ) (116,388 )
Net increase in cash and cash equivalents 1,949 1,549
Cash and cash equivalents at beginning of year 93,486 4,830
Cash and cash equivalents at end of period $ 95,435 $ 6,379

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

Copyright Business Wire 2009