The company said that its Highlander well produced 75 MMcf/d during production testing
On February 20, 2015, Freeport McMoRan (ticker: FCX) announced the results of additional production testing on Freeport McMoRan Oil & Gas’s (FM O&G) Highlander discovery, located onshore South Louisiana. The production test indicated a flow rate of approximately 75 MMcf/d, approximately 37 MMcf/d net to FM O&G. Energy XXI (ticker: EXXI) holds a minority interest in the project and reported 150 feet of net pay in its Q2’14 results.
The Highlander discovery well was drilled to a total depth of approximately 29,400 feet in the Inboard Lower Tertiary/Cretaceous trend in Louisiana. In December 2014, FM O&G tested the well at a rate of approximately 43.5 MMcf/d. A second well has been identified and future plans are being evaluated in the area where FM O&G controls rights to more than 50,000 gross acres.
“This additional test data confirms the highly favorable reservoir characteristics of this discovery. We look forward to immediately establishing commercial production from this important discovery,” the company said in its press release.
FM O&G is operator of the Highlander well and holds a 72% working interest and an approximate 49% net revenue interest. Other working interest owners include EXXI (18%) and W.A. “Tex” Moncrief Jr. (10%), a private investor. The Gulf Coast Ultra Deep Royalty Trust (ticker: GULTU) holds a 3.6% overriding royalty interest in the Highlander area.
Freeport McMoRan has participated in projects with Energy XXI before, including the nearby Davy Jones well, which logged 200 feet of net pay in production testing.
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