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): May 9, 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 May
9, 1997:
NEW ORLEANS, LA., May 9, 1997 -- McMoRan Oil & Gas Co. (NASDAQ:MOXY)
today reported that MOXY and MCN Energy Group Inc. (NYSE:MCN) have
completed the sale of their interest in West Cameron Block 503 located
in the Gulf of Mexico for $7.2 million. MCN had a 60 percent working
interest and MOXY had a 40 percent working interest in the block.
MOXY will recognize a $2.3 million gain in the second quarter of 1997
and use its $2.9 million share of the proceeds of the sale to repay
borrowings from MCN.
In 1996, MOXY discovered two gas reservoirs on West Cameron Block
503 with 71 feet of net gas pay in the No. 1 exploratory well. After
reviewing the potential reserves and the future capital expenditure
requirements to develop the field, MOXY and MCN agreed that it was
optimal to sell the property and not proceed with developing the
reserves. The sale provides an attractive return and also allows
MOXY's staff to focus its attention on other potentially larger
opportunities. The purchaser of West Cameron Block 503 plans to
install a production platform on an adjacent block to develop reserves
in which MOXY does not own a working interest and will use the same
platform to develop the reserves on Block 503.
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: May 13, 1997
