McMoRan Exploration Co. (MMR:US) climbed after it said it will continue to try to unclog the Davy Jones No. 1 well in the Gulf of Mexico and seek a measurable flow test of natural gas.
McMoRan, based in New Orleans, rose (MMR:US) 2.2 percent to $8.72 at the close in New York, after earlier falling 9 percent on news that the company’s latest attempt to clear the well had failed. The shares are down 30 percent from the close on Nov. 23, the last trading day before the company announced more setbacks in testing the Davy Jones well.
The company had “limited success” using a solvent to dissolve barite, a component of drilling mud that’s been blocking the well for months. McMoRan is starting to use a propellant stimulation gun to create new fractures, according to a statement today. The company said it may inject more solvent to dissolve the barite.
Complications have repeatedly delayed the test since late 2011 as McMoRan seeks to produce gas from an ultra-deep well in the shallow waters of the Gulf. McMoRan said Nov. 26 that a test earlier that month was inconclusive and that it would use a solvent to try to clean out the barite.
McMoRan operates and has a 63.4 percent working interest in Davy Jones, according to today’s statement. Other partners include Energy XXI Bermuda Ltd., JX Nippon Oil Exploration (Gulf) Ltd. and Moncrief Offshore LLC.
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