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McMoRan Exploration disapointed with an update on flow testing at their Davy Jones 2 nat. gas exploration well in shallow water GoM. It's incredibly deep for a gas well (30K feet) and they had problems with the drilling mud at those temperatures/pressures. They fell 20% today because they failed to achieve measurable flow and are going to try injecting barite solvents to try see if it's a problem of the drilling mud clogging the well perforations (http://www.mcmoran.com/pdf/2012/112612.pdf)

Definitely not great. They've had successful test wells in that area, but part of the thesis for the stock is that it's a large, continuous structure that's a continuation of onshore deposits, and if there's a dry hole that puts the thesis at risk.

The CEO & President James Moffett has 5M shares and is also chairman of the Freeport McMoRan Bod, so he has a lot personally at stake in the success of the company.
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