Our Strategy

Our business strategy is to create value through exploration activities and to exploit and develop our existing property base. Our technical and operational expertise is primarily in the Gulf of Mexico (GOM). We leverage our expertise by attempting to identify exploration opportunities with high potential. McMoRan's exploration strategy is focused in the shallow waters of the GOM and Gulf Coast area on the "ultra-deep gas play" and on the "deep gas play".

Since 2008, McMoRan has actively pursued large ultra-deep targets located in the shallow waters of the GOM below the salt weld (i.e. listric fault) at depths generally below 25,000 feet. The data gained to date confirm McMoRan's geologic model and the highly prospective nature of this emerging geologic trend. McMoRan's activities have confirmed that drilling below the salt weld on the Shelf of the GOM can be achieved safely. The data indicate the presence below the salt weld of geologic formations including Middle/Lower Miocene, Wilcox, Frio, Tuscaloosa and Cretaceous carbonate. These formations have been prolific onshore, in the deepwater GOM and in international locations. McMoRan is encouraged by the results which indicate the potential for prospects with high quality reservoirs on large structures with multi-Tcfe of gross unrisked potential.

In addition to the ultra-deep play on the Shelf of the GOM, McMoRan's exploration strategy is also focused on the "deep gas play". Deep gas prospects target large Miocene age deposits above the salt weld (i.e. listric fault) at depths typically between 15,000 to 25,000 feet.

When we find commercially exploitable oil or natural gas, a significant advantage to our exploration strategy is that the infrastructure to support the production and delivery of product is in most cases already in place and available. We believe this presents us with a material competitive advantage in bringing our discoveries on line and lowering related development costs.