McMoRan Exploration Co. plunged the most in more than five months after announcing an equipment malfunction related to the Davy Jones No. 1 well in the Gulf of Mexico.
McMoRan tumbled 7.5 percent to $11.23 at the close in New York, the most since Oct. 3.
Hydraulic perforating equipment malfunctioned during activities at the operation’s Wilcox “F” sand, New Orleans-based McMoRan said in a statement released after the close of regular U.S. trading yesterday. The company hasn’t completed flow testing at the Davy Jones No. 1 well, it said.
McMoRan sought to perforate Wilcox “C” sand yesterday and the well began to flow as equipment was being removed, according to a statement issued today. A test in Wilcox “D” sand also resulted in a flare. The flow from the “D” sand is being affected by debris and results from a cleaner test will be announced at a later date, the company said.
The company previously said it drilled two successful sub-salt wells in the Davy Jones field.
McMoRan operates and has a 63.4 percent working interest in Davy Jones. Other partners include Energy XXI, JX Nippon Oil Exploration (Gulf) Ltd. and Moncrief Offshore LLC, according to the statements.
Davy Jones is in the same geologic layer that yielded BP Plc’s billion-barrel Tiber field and Chevron Corp.’s Jack discovery.