PHOENIX--(BUSINESS WIRE)--Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) today announced that its
oil & gas segment, Freeport-McMoRan Oil & Gas (FM O&G), was the apparent
high bidder on 20 tracts in the Central Gulf of Mexico Oil and Gas Lease
Sale 231 with a total investment of approximately $330 million net to FM
O&G. The bids are subject to approval by the U.S. Bureau of Ocean Energy
Management and these potential investments were included in the
company’s previously reported 2014 capital budget.
“The addition of these blocks is strategic and complementary to
our existing acreage and provides opportunities to add substantial oil
resources to our world class portfolio in the Gulf of Mexico.”
FM O&G winning bids were primarily focused on high-impact, drillable
targets in the Mississippi Canyon and Atwater Valley areas to complement
FM O&G’s existing infrastructure and production facilities and add
several new exploration plays. The blocks, which cover approximately
106,000 gross acres, range in water depths up to 6,000 feet. The company
expects to be notified and designated operator of these blocks by the
third quarter of 2014.
"The Deepwater Gulf of Mexico continues to be a highly attractive
growth area for us and our lease-sale effort was focused on leveraging
our existing infrastructure to drive superior returns," said James C.
Flores, FCX Vice Chairman and FM O&G President and Chief Executive
Officer. "The addition of these blocks is strategic and complementary to
our existing acreage and provides opportunities to add substantial oil
resources to our world class portfolio in the Gulf of Mexico."
FCX is a premier U.S.-based natural resource 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 and El
Abra operations in South America; the Tenke Fungurume minerals district
in the DRC; and significant oil and natural gas assets in North America,
including reserves in the Deepwater GOM, onshore and offshore California
and in the Eagle Ford and Haynesville shale plays, and an industry
leading position in the emerging shallow water, Inboard Lower
Tertiary/Cretaceous 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 bids in the Gulf of Mexico lease sale. 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 failure to obtain required regulatory approval 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.
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.
Contacts
Freeport-McMoRan Copper & Gold
Financial Contacts:
Kathleen
L. Quirk, 602-366-8016
or
David P. Joint, 504-582-4203
or
Media
Contact:
Eric E. Kinneberg, 602-366-7994