Freeport-McMoRan Inc. (NYSE: FCX) announced today the results of
additional production testing on Freeport-McMoRan Oil & Gas’s (FM O&G)
Highlander discovery, located onshore in South Louisiana in the Inboard
Lower Tertiary/Cretaceous trend. The production test, which was
performed in the Cretaceous/Tuscaloosa section, utilized expanded
testing equipment and indicated a flow rate of approximately 75 million
cubic feet of natural gas per day (MMcf/d), approximately 37 MMcf/d net
to FM O&G, on a 42/64th choke with flowing tubing pressure of 10,300
pounds per square inch. FM O&G expects to immediately commence
production using FM O&G facilities in the immediate area. FM O&G plans
to install additional amine processing facilities to accommodate the
higher rates.
As previously reported, the Highlander discovery well was drilled to a
total depth of approximately 29,400 feet in first-quarter 2014. Wireline
log and core data obtained from the Wilcox and Cretaceous sand packages
indicated favorable reservoir characteristics with approximately 150
feet of net pay. In December 2014, FM O&G tested the well at a rate of
approximately 43.5 MMcf/d on a 22/64th choke with flowing tubing
pressure of 11,880 pounds per square inch. A second well has been
identified and future plans are being evaluated in this high potential
area. FM O&G has identified multiple prospects in the Highlander area
where it controls rights to more than 50,000 gross acres.
James R. Moffett, Chairman of the Board; Richard C. Adkerson, Vice
Chairman, and FCX President and Chief Executive Officer; and James C.
Flores, Vice Chairman, and FM O&G President and Chief Executive Officer,
said, “This additional test data confirms the highly favorable reservoir
characteristics of this discovery. We look forward to immediately
establishing commercial production from this important discovery.”
FM O&G is operator of the Highlander well and holds a 72.0 percent
working interest and an approximate 49 percent net revenue interest.
Other working interest owners include Energy XXI LTD (Nasdaq: EXXI)
(18.0%) and W. A. “Tex” Moncrief Jr. (10.0%). The Gulf Coast Ultra Deep
Royalty Trust (Nasdaq: GULTU) holds a 3.6 percent overriding royalty
interest in the Highlander area.
FCX is a premier U.S.-based natural resources company with an
industry-leading global portfolio of mineral assets, significant oil and
gas resources and a growing production profile. FCX is the world's
largest publicly traded copper producer.
FCX's portfolio of assets includes the Grasberg minerals district in
Indonesia, one of the world's largest copper and gold deposits;
significant mining operations in the Americas, including the large-scale
Morenci minerals district in North America and the Cerro Verde operation
in South America; the Tenke Fungurume minerals district in the
Democratic Republic of Congo; and significant oil and natural gas assets
in North America, including reserves in the Deepwater Gulf of Mexico
(GOM), onshore and offshore California and in the Haynesville natural
gas shale play, and an industry-leading position in the emerging shallow
water Inboard Lower Tertiary/Cretaceous natural gas trend on the Shelf
of the GOM and onshore in South Louisiana. Additional information about
FCX is available on FCX's website at "www.fcx.com."
Cautionary Statement Regarding Forward-Looking Statements: This
press release contains forward-looking statements, which are all
statements other than statements of historical facts, such as
expectations relating to production and sales volumes, development and
production activities and capital expenditures. The words “anticipates,”
“may,” “can,” “plans,” “believes,” "potential," “estimates,” “expects,”
“projects”, "targets," “intends,” “likely,” “will,” “should,” “to be,”
and any similar expressions are intended to identify those assertions as
forward-looking statements. FCX cautions readers that forward-looking
statements are not guarantees of future performance and its actual
results may differ materially from those anticipated, projected or
assumed in the forward-looking statements. Important factors that can
cause FCX's actual results to differ materially from those anticipated
in the forward-looking statements include production rates, industry
risks, regulatory changes, drilling results, weather- and
climate-related risks and other factors described in more detail under
the heading “Risk Factors” in FCX's Annual Report on Form 10-K for the
year ended December 31, 2013, filed with the U.S. Securities and
Exchange Commission (SEC) as updated by FCX’s subsequent filings with
the SEC.
Investors are cautioned that many of the assumptions on which FCX's
forward-looking statements are based are likely to change after its
forward-looking statements are made, including for example commodity
prices, which FCX cannot control, and production volumes and costs, some
aspects of which FCX may or may not be able to control. Further, FCX may
make changes to its business plans that could or will affect its
results. FCX cautions investors that it does not intend to update
forward-looking statements more frequently than quarterly
notwithstanding any changes in FCX's assumptions, changes in business
plans, actual experience or other changes, and FCX undertakes no
obligation to update any forward-looking statements.
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