PHOENIX--(BUSINESS WIRE)--
Freeport-McMoRan Inc. (NYSE: FCX) announced today positive drilling
results from the Freeport-McMoRan Oil & Gas (FM O&G) 100-percent-owned
Holstein Deep and Dorado development wells in the Deepwater Gulf of
Mexico (GOM). Production from these projects is expected to total
approximately 30,000 barrels of oil equivalents (BOE) per day in 2016.
James R. Moffett
, Chairman of the Board;
Richard C. Adkerson
, Vice
Chairman, and FCX President and Chief Executive Officer; and James C.
Flores, Vice Chairman, and FM O&G President and Chief Executive Officer,
said, “The results from the Holstein Deep and Dorado development wells
are excellent examples of investments in low risk, high return
development opportunities utilizing existing infrastructure in the Gulf
of Mexico. As we work to manage capital in a challenging market
environment, we will continue to prioritize development projects in our
core focus areas.”
During the fourth quarter of 2014, the Holstein Deep delineation
well in the Green Canyon area reached a total depth of approximately
31,100 feet. Recent wireline logs and core data combined with previously
reported interim results confirmed that the well encountered a total of
approximately 234 net feet of Miocene oil pay with excellent reservoir
characteristics and good correlation to the discovery well and previous
confirmation sidetrack penetration.
Production from the planned three-well development program is expected
to reach approximately 15,000 BOE per day in 2016 and will be tied back
to the existing Holstein production facility. Based on the results from
the Holstein Deep delineation well, FM O&G has increased the net
unrisked resource potential of the Holstein Deep field to more than 250
MMBOE from the previous estimate of approximately 140 MMBOE. The data
also supports the potential for additional development opportunities at
Holstein Deep to achieve production of up to 75,000 BOE per day by 2020.
The Holstein Deep development is located in Green Canyon Block 643, west
of the Holstein platform in 3,890 feet of water. FM O&G acquired the
acreage associated with this development in a 2013 lease sale held by
the Bureau of Ocean Energy Management.
FM O&G has identified multiple additional development opportunities in
the Green Canyon area that could be tied back to the Holstein facility.
The company also reported positive drilling results at the
100-percent-owned Dorado development project which commenced
drilling in October 2014. In December 2014, the well reached a total
depth of approximately 14,600 feet and encountered approximately 245 net
feet of Miocene pay with excellent reservoir characteristics and good
correlation to offset productive wells. This well is the first of three
planned subsea tieback wells to the Marlin facility targeting undrained
fault blocks and updip resource potential south of the Marlin facility.
Production from the planned three-well Dorado development is expected to
reach approximately 15,000 BOE per day in 2016 and will be tied back to
the existing Marlin production facility. The Dorado development is
located on Viosca Knoll Block 915 in 3,860 feet of water. FM O&G has a
100 percent working interest in Marlin.
FM O&G has multiple development opportunities in the Marlin area that
could be tied back to the Marlin facility.
These projects were previously incorporated in the company’s estimates
of production and capital expenditures. The company is conducting a
review of capital expenditures and other costs in response to the recent
decline in oil prices. The review includes evaluation of opportunities
to reduce or defer expenditures and potential partnership arrangements.
FCX is a premier U.S.-based natural resources company with an
industry-leading global portfolio of mineral assets, significant oil and
gas resources and a growing production profile. FCX is the world's
largest publicly traded copper producer.
FCX's portfolio of assets includes the Grasberg minerals district in
Indonesia, one of the world's largest copper and gold deposits;
significant mining operations in the Americas, including the large-scale
Morenci minerals district in North America and the Cerro Verde operation
in South America; the Tenke Fungurume minerals district in the
Democratic Republic of Congo; and significant oil and natural gas assets
in North America, including reserves in the Deepwater GOM, onshore and
offshore California and in the Haynesville natural gas shale play, and
an industry-leading position in the emerging shallow water Inboard Lower
Tertiary/Cretaceous natural gas trend on the Shelf of the GOM and
onshore in South Louisiana. Additional information about FCX is
available on FCX's website at "www.fcx.com."
Cautionary Statement Regarding Forward-Looking Statements: This
press release contains forward-looking statements, which are all
statements other than statements of historical facts, such as
expectations relating to production and sales volumes, development
and production activities and capital expenditures. The words
“anticipates,” “may,” “can,” “plans,” “believes,” "potential,"
“estimates,” “expects,” “projects”, "targets," “intends,” “likely,”
“will,” “should,” “to be,” and any similar expressions are intended to
identify those assertions as forward-looking statements. FCX cautions
readers that forward-looking statements are not guarantees of future
performance and its actual results may differ materially from those
anticipated, projected or assumed in the forward-looking statements.
Important factors that can cause FCX's actual results to differ
materially from those anticipated in the forward-looking statements
include production rates, industry risks, regulatory changes, drilling
results, weather- and climate-related risks and other factors described
in more detail under the heading “Risk Factors” in FCX's Annual Report
on Form 10-K for the year ended December 31, 2013, filed with the U.S.
Securities and Exchange Commission (SEC) as updated by FCX’s subsequent
filings with the SEC.
The SEC requires companies with significant oil and gas producing
activities to disclose, in their filings with the SEC, proved oil and
gas reserves that have been demonstrated by actual production or
conclusive formation tests to be economically and legally producible
under existing economic and operating conditions. The SEC also permits
the disclosure of probable oil and gas reserves, as such term is defined
by the SEC. FCX uses certain phrases and terms in this press release,
such as “net unrisked resource potential,” which the SEC’s rules
prohibit FCX from including in its filings with the SEC. “Net unrisked
resource potential” does not take into account the certainty of resource
recovery, which is contingent on exploration success, technical
improvements in drilling access, commerciality and other factors, and is
therefore not indicative of expected future resource recovery and should
not be relied upon.
Investors are cautioned that many of the assumptions on which FCX's
forward-looking statements are based are likely to change after its
forward-looking statements are made, including for example commodity
prices, which FCX cannot control, and production volumes and costs, some
aspects of which FCX may or may not be able to control. Further, FCX may
make changes to its business plans that could or will affect its
results. FCX cautions investors that it does not intend to update
forward-looking statements more frequently than quarterly
notwithstanding any changes in FCX's assumptions, changes in business
plans, actual experience or other changes, and FCX undertakes no
obligation to update any forward-looking statements.
Source: Freeport-McMoRan Inc.