McMoRan Exploration has “limited success” in ultradeep well

McMoRan Exploration has had limited success reaching commercial production at a key well in its ultra-deep, shallow water program in the Gulf of Mexico, after several attempts to unblock the reservoir, the company announced.

The New Orleans-based company, which engages in exploration and production of oil and natural gas in shallow areas of the Gulf of Mexico and along the Gulf Coast onshore, said it is continuing efforts to unclog the Davy Jones No. 1 well. The company believes flow is restricted by mineral deposits or other formation damage.

The Davy Jones No. 1 well is located in 20 feet of water off Louisiana in South Marsh Island Block 230. It stretches more than 28,000 feet below the seafloor.

McMoRan said it will try using electric wireline through-tubing guns to perforate the well. Earlier this month, the company used a propellant stimulation gun to clear the mineral deposits with limited success. That effort came after injecting a solvent, designed to dissolve the mineral, didn’t fully reach the blockages.

Davy Jones was discovered in January 2010 and the well opened for testing in November.

Freeport-McMoRan Copper & Gold announced in early December a deal to buy McMoRan Exploration as part of a larger deal to acquire Plains Exploration. According to Reuters, trouble at the Davy Jones project led Freeport-McMoRan to reduce its cash offer by nearly 5 percent just days before the acquisition was publicly announced.