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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.

Freeport McMoRan

“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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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.