McMoRan Exploration to sell package of Gulf properties to Arena Energy

McMoRan Exploration has agreed to sell a package of Gulf of Mexico traditional shelf oil and gas properties in the Eugene Island area to Arena Energy for cash consideration of $36.8M and the assumption of related abandonment obligations.The properties include 9 fields on 14 offshore blocks in the Eugene Island area, which produced approximately 630 million cubic feet of natural gas and 46,000 barrels of oil, condensate and natural gas liquids in Q2. The transaction with Arena will be effective July 1, 2012, and is subject to customary closing conditions with an expected closing in the fourth quarter of 2012. At June 30, 2012, McMoRan had recorded approximately $34.4M in estimated future reclamation obligations associated with these properties in the Eugene Island area. As previously disclosed, McMoRan agreed to sell three Gulf of Mexico Shelf oil and gas properties in the West Delta and Mississippi Canyon areas to Renaissance Offshore, LLC for cash consideration of $28M and the assumption of related abandonment obligations. Upon completion of these transactions, McMoRan expects to record net gains totaling approximately $38M.