McMoRan Exploration Co. Updates Status of Davy Jones No. 1

  McMoRan Exploration Co. Updates Status of Davy Jones No. 1

Business Wire

NEW ORLEANS -- January 30, 2013

McMoRan Exploration Co. (NYSE: MMR) today updated the status of the Davy Jones
No. 1 well on South Marsh Island Block 230. As previously reported, McMoRan is
developing plans at the Davy Jones No. 1 well to pump a hydraulic fracture
treatment including proppant to facilitate hydrocarbon movement into the
wellbore. Future plans will incorporate data gained to date at Davy Jones as
well as potential core and log data from the in progress well at Lineham
Creek, located onshore approximately 50 miles northwest of Davy Jones. The rig
is being moved off location for several months while a large scale hydraulic
fracture treatment is designed to penetrate the Wilcox reservoirs.

As previously reported, the Davy Jones No. 1 well logged 200 net feet of pay
in multiple Wilcox sands, which were all full to base. The Davy Jones offset
appraisal well (Davy Jones No. 2), which is located two and a half miles
southwest of Davy Jones No. 1, confirmed 120 net feet of pay in multiple
Wilcox sands, indicating continuity across the major structural features of
the Davy Jones prospect, and also encountered 192 net feet of potential
hydrocarbons in the Tuscaloosa and Lower Cretaceous carbonate sections.

McMoRan is the operator and holds a 63.4 percent working interest and a 50.2
percent net revenue interest in Davy Jones. Other working interest owners in
Davy Jones include: Energy XXI (NASDAQ: EXXI) (15.8%), JX Nippon Oil
Exploration (Gulf) Limited (12%) and Moncrief Offshore LLC (8.8%).

McMoRan Exploration Co. is an independent public company engaged in the
exploration, development and production of natural gas and oil in the shallow
waters of the GOM Shelf and onshore in the Gulf Coast area. Additional
information about McMoRan is available on its internet website
“www.mcmoran.com”.

CAUTIONARY STATEMENT: This press release contains forward-looking statements
that involve a number of assumptions, risks and uncertainties that could cause
actual results to differ materially from those contained in the
forward-looking statements. We caution readers that forward-looking statements
are not guarantees of future performance or exploration and development
success, and our actual exploration experience and future financial results
may differ materially from those anticipated, projected or assumed in the
forward-looking statements. Such forward-looking statements include, but are
not limited to, statements regarding potential oil and gas discoveries, oil
and gas exploration, development and production activities and costs, amounts
and timing of capital expenditures, reclamation, indemnification and
environmental obligations and costs, the potential for or expectation of
successful flow tests, potential quarterly and annual production and flow
rates, reserve estimates, projected operating cash flows and liquidity, the
potential merger with FCX, the potential MPEH^TM project and other statements
that are not historical facts. No assurance can be given that any of the
events anticipated by the forward-looking statements will transpire or occur,
or if any of them do so, what impact they may have on our results of
operations or financial condition. Important factors that may cause actual
results to differ materially from those anticipated by forward-looking
statements include, but are not limited to, those associated with general
economic and business conditions, failure to realize expected value creation
from acquired properties, variations in the market demand for, and prices of,
oil and natural gas, drilling results, unanticipated fluctuations in flow
rates of producing wells due to mechanical or operational issues (including
those experienced at wells operated by third parties where we are a
participant), changes in oil and natural gas reserve expectations, the
potential adoption of new governmental regulations, unanticipated hazards for
which we have limited or no insurance coverage, failure of third party
partners to fulfill their capital and other commitments, the ability to
satisfy future cash obligations and environmental costs, adverse conditions,
such as high temperatures and pressure that could lead to mechanical failures
or increased costs, the ability to retain current or future lease acreage
rights, access to capital to fund drilling activities, the ability to obtain
regulatory approvals and significant project financing for the potential
MPEH^TM project, the failure to consummate the merger with FCX as well as
other general exploration and development risks and hazards and other factors
described in Part I, Item 1A. "Risk Factors" included in our Annual Report on
Form 10-K for the year ended December 31, 2011 filed with the Securities and
Exchange Commission (SEC), as updated by McMoRan’s subsequent filings.

Investors are cautioned that many of the assumptions upon which our
forward-looking statements are based are likely to change after our
forward-looking statements are made, including for example the market prices
of oil and natural gas, which we cannot control, and production volumes and
costs, some aspects of which we may or may not be able to control. Further, we
may make changes to our business plans that could or will affect our results.
We caution investors that we do not intend to update our forward-looking
statements more frequently than quarterly, notwithstanding any changes in our
assumptions, changes in our business plans, our actual experience, or other
changes, and we undertake no obligation to update any forward-looking
statements.

Contact:

McMoRan Exploration Co.
David P. Joint, 504-582-4203
 
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