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Phobos is a discovery made in April 2013, with 250ft (net) oil in Upper

Wilcox, and upside potential in Lower

Wilcox. It’s a long-term project, with frst oil slated for 2019.

Drilling

Freeport-McMoRan

Prospects The company has eight deepwater exploration prospects with in deepwater GoM risked net reserves of 242 MMboe:

Kanzai, in Alaminos Canyon; Zephir,

By Nina M. Rach Horn Mountain is produced from a Tara, and a Lucius offset in Keathley reeport-McMoRan Copper & Gold 106ft diameter truss spar, installed in Canyon; as well as Tungsten, Copper, (FCX) is one of the world’s larg- 5400ft water depth. It has the capacity to Silverfox, and Holstein in Green Canyon.

F est mining companies, but it is produce 75,000 bo/d and 72,000 Mcf/d.

Ultra-deep expanding its interests in North American Horn Mountain is in the northeastern Quirk says that Freeport- oil and gas. FM O&G has about 1200 corner of Mississippi Canyon, adjacent to McMoRan has an “industry-leading”

Houston-based employees, and has addi- King and Mercury developments and to position in the emerging ultra-deep play tional offces in California, in coastal Louisiana, from onshore to

Louisiana, and Texas. shelf to deep water, with an extensive

FCX Executive Vice inventory of large natural gas prospects.

President and Chief Financial Drilling activities have confrmed the

Offcer Kathleen L. Quirk gave geologic model of the trend spanning 200 an update on 11 December at miles in shallow waters of the GoM and

Macquarie Global Metals & onshore in the Gulf Coast area.

Mining Conference, saying Deepwater extensions of the Miocene the Gulf of Mexico represents trend are seen at Shenandoah-Kaskida- about 47% of the FM O&G’s Tiber, farther out at Tahiti - Mad Dog in

Q3 cash operating margin of Green Canyon, and even further out, at

US$1.1billion. Other areas Jack – Cascade in Walker Ridge.

are the Eagle Ford shale play The company plans to complete three

Near-term GoM deepwater & ultra-deep exploration prospects. Image courtesy of Freeport-McMoRan.

(28%), California oil (23%), ultra-deep wells in 2014: • and Haynesville (2%). About 90% of FM Platinum in southeastern Viosca Knoll. Blackbeard West #2 (69.4% WI) targets

O&G revenues are from oil and natural gas Production from Horn Mountain Alliance middle and lower Miocene and upper liquids. is expected in late 2017, followed by Oligocene, drilled from 79-ft water depth

FM O&G is an active player in deep-

Tango and Lion in 2018. on the shelf in Ship Shoal Block 188. water GoM, with current production of

Production anticipated in early 2015.

Marlin Hub - Marlin is produced through Lineham Creek (36% WI; onshore • 59,600boe/d in 3Q 2013, Quirk noted. a dry tree and subsea production system Cameron Parish); production anticipated

FCX holds about 827,000 gross acres in and a tension-leg platform (TLP) installed in late 2015, early 2016.

the deepwater GoM (beyond 500ft water • in 3240ft water depth. It has a capacity of Davy Jones #2, in South Marsh Island depth), and is involved in twelve deepwa- 60,000bo/d and 235,000 Mcf/d. Marlin is (75% WI) is in shallow federal waters on ter projects, with a risked net resource of directly north of the Dorado development the shelf; testing Wilcox and Tuscaloosa 318 MMboe (PV-10 $6 billion).

in 4000ft water, Viosca Knoll Block 915, (Upper Cretaceous). Production antici-

Operator

The company operates three operated by BP. pated in mid-2016.

properties: Holstein, in Green Canyon Freeport-McMoRan holds acreage in

Expenses and forecasts

Blocks 644-645 (688 untested); Horn two non-operated projects: Lucius, in Operating

Mountain in Mississippi Canyon Blocks Keathley Canyon Blocks 874-875-918- costs for the Gulf of Mexico shelf and 127 (126-128-171-172 untested); and the 919, and Phobos, in Sigsbee Escarpment deepwater were $14/bbl in 2H 2013,

Marlin hub, with Dorado in Viosca Knoll Blocks 39 (untested in 40, 83), just south based on LLS/NYMEX pricing. Sales

Blocks 915-959, King in MC 40-41-84-85- of the southern boundary of Keathley included about 57 Mboe/d, including 129, and Mercury in MC 41. Canyon. 5 Mboe/d of natural gas liquids, and 84

Lucius has a thick Pliocene oil column, MMcf/d.

Holstein is produced from a 149ft with “large upside Miocene potential,” Quirk said the company’s estimated diameter truss spar, installed in 4300ft FM O&G says. capital expenditures in for oil and gas in water depth in GC Block 645. It has the Operated by Anadarko, FM O&G touts 2013 will be US$1.5 billion (June 1-Dec capacity to produce 113,500 bo/d and the project as being on time and on bud- 31), rising to $2.7 billion in 2014, and 142,300 Mcf/d. Production began in get. The Lucius truss spar was offoaded $2.9 billion in 2015.

December 2004. at Ingleside, Texas, in June 2013. The The company has the potential to dou-

The company is reactivating the topsides have a processing capacity of ble its production in the next fve years,

Mcf/d.

Holstein platform rig for drilling in 80,000-120,000 bo/d and 450,000 said FCX President and Chief Executive 2014 with production at Holstein Deep First production from the Lucius devel- Offcer Richard C. Adkerson at a manage- expected by early 2017. opment is expected by 2H 2014. ment presentation in June 2013.

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