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): January 14, 2000
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 2. Acquisition or Disposition of Assets
On January 14, 2000, our wholly owned subsidiary, McMoRan Oil & Gas LLC,
acquired from Shell Offshore Inc. 56 exploratory leases containing approximately
260,000 gross acres located primarily in the Louisiana offshore Gulf of Mexico
area for a purchase price of $37.7 million. Shell's ownership interest in the
acquired leases ranged from 25 to 100 percent. Shell retained an overriding
royalty interest in the properties. Our acquisition of four of the leases is
subject to a third party's preferential rights to acquire such leases and, as a
result, $2.6 million of the purchase price has been escrowed pending resolution
of these preferential rights.
We funded the purchase price through (1) the credit facility of McMoRan
Oil & Gas LLC with a bank group led by Chase Bank of Texas, National
Association, and (2) the credit facility of Freeport-McMoRan Sulphur LLC, a
wholly owned subsidiary, with a bank group led by The Chase Manhattan Bank
and Hibernia National Bank.
On January 18, 2000, we issued a press release, which is listed under
Item 7 as Exhibit 99.1 and incorporated by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Financial Statements.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits.
Exhibit 99.1 Press Release issued by McMoRan Exploration Co. on January 18,
2000.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
McMoRan Exploration Co.
By: /s/ C.Donald Whitmire, Jr.
---------------------------
C. Donald Whitmire, Jr.
Vice President & Controller -
Financial Reporting
(Authorized signatory)
Date: January 20, 2000
Exhibit 99.1
McMoRan EXPLORATION CO. ANNOUNCES PURCHASE OF
56 EXPLORATORY LEASES FROM SHELL OFFSHORE INC.
NEW ORLEANS, LA, January 18, 2000 - McMoRan Exploration
Co. (NYSE:MMR) announced today that it has purchased from Shell
Offshore Inc. (Shell), a wholly owned subsidiary of Royal Dutch
Petroleum Co. (NYSE:RD), Shell's interests in 56 exploratory
leases containing approximately 260,000 gross acres located
primarily in the Louisiana offshore Gulf of Mexico area. Shell
retained an overriding royalty interest in each of the
properties. The leases are located in water depths up to 1,978
feet, with the bulk of the leases in shallow water. Shell's
ownership interests in the leases acquired ranged from 25 to
100 percent. McMoRan's acquisition of four of the leases is
subject to preferential rights.
In a joint statement James R. Moffett, Co-Chairman, and
Richard C. Adkerson, Co-Chairman, President and Chief Executive
Officer of McMoRan Exploration Co., said, "This transaction
will significantly enhance MMR's presence on the continental
shelf of the Gulf of Mexico where we have conducted oil and gas
exploration, development, and production operations for more
than 25 years. The Shell purchase, along with our previously
announced transaction with Texaco and MMR's current lease
inventory, gives us exploratory rights to approximately 170
blocks and 750,000 gross acres. We now have a substantial
foundation for an aggressive exploration program with one of
the broadest exploration acreage positions in the Gulf of
Mexico held by an independent. We believe there are
significant opportunities to discover meaningful oil and gas
reserves by using advanced 3-D seismic data and other state-of-
the-art technology in selecting exploration prospects. With
our seasoned explorationists and our existing large data base,
we are focused on providing our shareholders significant
opportunities for growth."
Dave Lawrence, Vice President Exploration and Development
for Shell Exploration & Production Company, said, "This
transaction continues our strategy of focusing on larger scale
exploration opportunities in the Gulf of Mexico, primarily in
deep water, while allowing us to retain an interest in
exploratory acreage on the Louisiana Shelf."
MMR is an independent public company engaged in the
exploration, development and production of oil and natural gas
offshore in the Gulf of Mexico and onshore in the Gulf Coast
area; and the mining, purchasing, transporting, terminaling,
and marketing of sulphur.
CAUTIONARY STATEMENT. This press release contains certain
forward-looking statements regarding development and
acquisition activities. Important factors that might cause
future results to differ from these projections include:
variations in the market prices of oil, natural gas and
sulphur; drilling results; unanticipated fluctuations in flow
rates of producing wells; oil, natural gas and sulphur reserves
expectations; the ability to satisfy future cash obligations
and environmental costs; general exploration and development
risks and hazards; and mine closure costs. Such factors and
others are more fully described in more detail in MMR's 1998
Form 10-K filed with the Securities and Exchange Commission.
A copy of this release is available by calling 1-800-469-1252
and on our web site at http://www.mcmoran.com.
