UPDATE 1-McMoRan Exploration reports platform damage from Ike

Tue Oct 7, 2008 9:25am EDT

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Oct 7 (Reuters) - Oil and gas explorer McMoRan Exploration Co (MMR.N) said several of its platforms were structurally damaged following Hurricane Ike, even as it said there was no significant damage resulting from Hurricane Gustav.

Assessments following Hurricane Ike identified several platforms, comprising about 3 percent of production and 2 percent of reserves, with significant structural damage, McMoRan said in a statement.

The company said it would incur a charge of $150 million to account for the damaged caused by the storm and would avail insurance payment, which has a $50 million deductible.

McMoRan also said it expects significant additional production to be restored in the fourth quarter of 2008.

The company estimates that its third quarter 2008 net production averaged about 220 million cubic feet (MMcfe) per day, while the fourth quarter production is expected to average 180 MMcfe per day and reach pre-storm levels in early 2009.

Shares of the company closed at $17.89 Monday on New York Stock Exchange. (Reporting by Sakthi Prasad in Bangalore; Editing by Jarshad Kakkrakandy)