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McMoRan Exploration Co. Message Board

  • jaxxxx56 jaxxxx56 Dec 17, 2012 11:55 AM Flag

    Current Situation Explained

    Here are my thoughts as a past MMR shareholder (sold last week at 15.50)...DJ1 will need to be significantly reworked - the current size of the pipe and the issues that have been encountered will not allow the well to flow as is.

    In the meantime - MMR does not have the cash to complete a major overhaul of DJ1 especially while working on these other wells. FCX does have the cash - BUT will not be spending any of it until the merger is completed. EXXI and other partners will understand this and be willing to wait to get a deep pocketed partner on board.

    You will not hear any significant updates on DJ1 until after merger is completed. They can try these other remedies to get the well flowing in the meantime but nothing significant.

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    • "DJ1 will need to be significantly reworked "

      Not gonna happen. To increase the diameter of the casing means complete re-drill. It either can be brought to fruition in the current configuration or it will be P&A time. That is the hard reality. I still have hopes that it will be brought online in some fashion, but we're talking about a hole over 29,500 feet with multiple casing steps. You don't just go pull all that steel out of the ground and ream the hole larger and re-install a casing.

      Something has to happen with DJ1 one way or another soon. Rowan lists the EXL-III as leased for the "low $140's(thousands)" per day. It is set for 20 days down time for maintenance, etc. after leaving DJ1 and that part was only added to their rig report in the recent reports. I'm guessing that Rowan needs to get the rig back to do updates and repairs that can not be completed in the field.

      EXXI et al have been exceptionally quiet. That can't last forever. Sooner or later someone is gonna release news. Either we get news of a flow test (good or bad) or they announce they will move on.

    • jaxx,
      who in the hell are you. i've never seen your name on this message board.where is this info coming from. is this your opionion are there facts to back up your statements. i'm very long on this stock and do not need some one coming on this message board giving facts unless they can be backe up with expert advice.

    • IMO, MMR and FCX will be obligated to give an update in January during their respective quarterly conference calls. Also, other partners such as EXXI, Moncrief, and Chevron expect continued work and updates on results. FCX shareholders, many of whom do not agree with the buyout and have seen the share price suffer, need to see results and explanations to justify the merger. An update on DJ1 even if negative will be given then as well as good news on SS188 and Lineham Creek. IMO

      Sentiment: Hold

 

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