SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 21, 1999
McMoRan Exploration Co.
(Exact name of registrant as specified in its charter)
Delaware 001-07791 72-1424200
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation or Number)
organization)
1615 Poydras Street
New Orleans, Louisiana 70112
(Address of principal executive offices)
(504) 582-4000
(Registrant's telephone number, including area code)
Item 5. Other Events
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The following news release was made by McMoRan Exploration Co. on December
21, 1999.
NEW ORLEANS, December 21, 1999 -- McMoRan Exploration Co. (NYSE: MMR) and
Texaco announced today the signing of an agreement that will grant McMoRan the
right to explore all or parts of 90 of Texaco's Gulf of Mexico tracts in the
Outer Continental Shelf (OCS), including seven leases in state waters of
Louisiana. The tracts encompass a total of 391,349 gross acres and are
located in water depths ranging from 10 to 2,600 feet. In addition to
approximately 400 unexplored deepwater blocks in the OCS, Texaco retains its
ongoing shelf producing operations as well as certain development zones
not included in the agreement.
Commenting on the agreement, Robert S. Lane, Vice President of Texaco's Gulf
of Mexico Producing Operations said, "The Gulf of Mexico is an important area
within Texaco's worldwide exploration and production plan, and this agreement
allows us to focus on our deepwater Gulf projects while maintaining an active
presence on the shelf. We are pleased to partner with McMoRan, a company with
a successful track record of discovery and development that spans more than
three decades in this region. Both companies enter into this venture with a
vision of increased activity in the Gulf that will benefit not only Texaco and
McMoRan, but also suppliers and vendors."
Under the terms of the agreement, McMoRan will commit in excess of $100 million
for exploration drilling over the next four years. McMoRan has incentives to
meet the agreed upon level of activity in each of the specified time periods
throughout the four year span. McMoRan will be the operator and may earn
various interests in the exploration tracts. Texaco will retain rights to
participate in the opportunities McMoRan elects to drill.
McMoRan Co-Chairman, James R. Moffett, said, "This partnership will be the
foundation of an aggressive exploration program combining Texaco's leasehold
inventory and McMoRan's exploration expertise. Texaco and McMoRan will
benefit from sharing expertise in one of the largest active exploration
positions in the OCS, targeting potential reserve additions of significance
to our respective companies."
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
McMoRan Exploration Co.
By: /s/ C. Donald Whitmire
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C. Donald Whitmire
Vice President & Controller -
Financial Reporting
(Authorized signatory)
Date: December 21, 1999
