McMoRan to buy PXP GoM properties

McMoRan Exploration Co. has agreed to acquire Plains Exploration & Production Co. properties in the Gulf of Mexico.

Offshore staff

NEW ORLEANS – McMoRan Exploration Co. has agreed to acquire Plains Exploration & Production Co. properties in the Gulf of Mexico. The deal involves $75 million plus McMoRan common stock.

The properties being acquired include PXP’s 27.7% interest in the significant ultra-deep discovery at Davy Jones, 5% interest in Blackbeard West and all of PXP’s interests in deep gas and ultra-deep exploration prospects on the shelf of the GOM, including Blackbeard East which is currently being drilled; PXP’s 30.0% working interest in the multi-well Flatrock field, 47.9% interest in Blueberry Hill, and 30.0% working interest in Hurricane Deep.

“This important transaction which will enable us to effectively double our participation in our key exploration and production projects in the shallow waters of the GOM,” said McMoRan’s co-chairmen James R. Moffett and Richard C. Adkerson.

“This transaction is consistent with our objective of restructuring our GOM ownership while enabling our shareholders to continue to participate in the significant potential of these opportunities,” said James C. Flores, chairman, president, and CEO of PXP.

Completion of the sale pends shareholder agreement and regulatory approvals.

09/20/2010

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