McMoRan says two Gulf of Mexico holes find gas

McMoRan Exploration Co., New Orleans, Tuesday reported success at two exploration wells in the Gulf of Mexico. The company plans to begin production from both in the second quarter.

McMoRan's third well on Eugene Island Block 193, on the North Tern deep prospect, found gas pay at 16,460-613 ft and 16,790-952 ft. The company said the sands are twice as thick as indicated by 3D seismic data and reserves could be 100 bcf or more.

The well will be completed using the Eugene Island 193-A platform. Production is estimated at 50 MMcfd of gas. McMoRan has a 53.4% working interest.

On Main Pass Block 986, a stepout 1 mile northwest of the discovery on the Shiner prospect found pay at 2,668-88 ft.

McMoRan said the discovery and stepout could produce more than 25 MMcfd of gas. It has a 71.3% working interest.