Freeport-McMoRan Reports Production Test Results for Highlander

Freeport-McMoRan Inc. (NYSE:FCX) announced results of its production test at Freeport-McMoRan Oil & Gas’s (FM O&G) Highlander discovery, which indicated a flow rate of approximately 75 million cubic feet of natural gas per day. The project is located onshore in South Louisiana in the Inbound lower Tertiary/Cretaceous trend.

As quoted in the press release:

The production test, which was performed in the Cretaceous/Tuscaloosa section, utilized expanded testing equipment and indicated a flow rate of approximately 75 million cubic feet of natural gas per day (MMcf/d), approximately 37 MMcf/d net to FM O&G, on a 42/64th choke with flowing tubing pressure of 10,300 pounds per square inch. FM O&G expects to immediately commence production using FM O&G facilities in the immediate area. FM O&G plans to install additional amine processing facilities to accommodate the higher rates.

Offering some background on the project, the release stated:

The Highlander discovery well was drilled to a total depth of approximately 29,400 feet in first-quarter 2014. Wireline log and core data obtained from the Wilcox and Cretaceous sand packages indicated favorable reservoir characteristics with approximately 150 feet of net pay. In December 2014, FM O&G tested the well at a rate of approximately 43.5 MMcf/d on a 22/64th choke with flowing tubing pressure of 11,880 pounds per square inch. A second well has been identified and future plans are being evaluated in this high potential area. FM O&G has identified multiple prospects in the Highlander area where it controls rights to more than 50,000 gross acres.

James R. Moffett , chairman of the board; Richard C. Adkerson , FCX president and CEO and vice chairman; and James C. Flores, FM O&G president and CEO and vice chairman, commented:

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.

Click here to read the full Freeport-McMoRan Inc. (NYSE:FCX) press release.