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 7, 1997
McMoRan Oil & Gas Co.
Delaware 0-23870 72-1266477
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation or Number)
organization)
1615 Poydras Street
New Orleans, Louisiana 70112
Registrant's telephone number, including area code: (504) 582-4000
Item 5. Other Events.
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The following news release was issued by McMoRan Oil & Gas Co. on
January 7, 1997:
NEW ORLEANS, LA., January 7, 1997 -- McMoRan Oil & Gas Co.
(NASDAQ:MOXY) today announced that it has discovered new reserves
while drilling on its Vermilion Block 160 Field Unit. Eight gas
sands have been logged in the Vermilion Block 159 AJ-3 discovery
well totaling approximately 215 feet of net pay at depths ranging
from approximately 13,500 feet to 15,500 feet. Seven of the
eight gas sands represent new reserves to the field. Casing is
currently being set and the well will continue drilling deeper
through additional objectives until it reaches a total depth of
approximately 16,600 feet. The discovery well is being drilled
from the Vermilion Block 160 production platform to a bottom hole
location on Vermilion Block 159 to the east and "updip" to the
known reserves. The field is located in 90 feet of water in the
offshore Gulf of Mexico approximately 155 miles west southwest of
New Orleans, Louisiana.
The Vermilion 160 Field Unit is comprised of portions of
four leases (Vermilion Blocks 143, 144, 159 & 160) totaling 5,625
acres. In addition, the MOXY/MCN program and its partners own
interests in or exploration rights to an additional 9,375 acres
in the four block area, including the farmin of 3,125 acres on
Vermilion Block 159. The MOXY/MCN program is a joint venture
with MCN Corporation (NYSE:MCN).
Previously, two wells were successfully drilled in the
Vermilion Block 160 Field Unit and production began in April
1995. Current production approximates 15 million cubic feet of
gas and 800 barrels of condensate per day. The MOXY/MCN program
has an extensive 3-D seismic survey which includes the Vermilion
160 Field Unit and adjoining blocks. Further drilling is
anticipated to develop the newly discovered reserves and to
explore the Unit as well as outside of the Unit particularly on
Vermilion Block 160 and the farmin acreage on Vermilion Block
159.
MOXY is the operator of the Vermilion 160 Field Unit where
the MOXY/MCN program currently owns a 40-percent working interest
and an approximate 28-percent net revenue interest. MOXY has a
40-percent interest in the MOXY/MCN program. Other working
interest partners in the Vermilion Block 160 Field Unit include
The Louisiana Land and Exploration Company (NYSE:LLX), 25-
percent; Continental Land & Fur Co., Inc., 15-percent; and
others, 20-percent. The current working interests and revenue
interests within the Unit are subject to re-determination
subsequent to final development drilling.
In Vermilion Block 160 outside of the Unit, the MOXY/MCN
program owns a 53.3-percent working interest and an approximate
42.5-percent net revenue interest. The MOXY/MCN program's
interest in Vermilion Blocks 160 and 143, including the portion
of its interest in the Unit resulting from these two blocks, is
subject to a 30-percent net profits interest.
MOXY continues to generate prospects and evaluate farmin
opportunities utilizing its geological and geophysical expertise
through the use of 3-D seismic data and state of the art
technology. MOXY may enter into other exploration joint ventures
in connection with future opportunities that may become
available.
SIGNATURE
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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, thereunto duly
authorized.
McMoRan Oil & Gas Co.
By: /s/ William J. Blackwell
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William J. Blackwell
Controller
(authorized signatory and
Principal Accounting Officer)
Date: January 8, 1997
