this is an excellent article explaining the davy jones situation---
full article here----
http://www.forbes.com/sites/joanlappin/ ... r=yahootix
Shortsellers Party Hearty After Their Cheerleader Says McMoRan Is Worth Zero
For MMR’s Co CEO Jim Bob Moffett and Energy XXI’s CEO John Schiller, November has not been a happy month. It hasn’t been a lot of fun for shareholders either, who see enormous value creation at both of these companies. Within 36 hours after my November 9th post that a flow test at Davy Jones #1 well was imminent, the flow test commenced on November 11th.
There had already been a several week delay during which MMR was trying to mechanically grind away solidified barite, an ingredient in the oil based mud that was used to contain the well when it repeatedly tried to flow before it was supposed to. The extreme heat and pressures had caused the barite to form a cement like material that was hard to grind away. So several weeks were spent trying to clean up the well for the flow test.
Once the flow test was initiated, MMR maintained a very tight radio silence that lasted for three weeks. That Investor Relations judgment call left plenty of room for the naysayers to prosper in the absence of hard data. Shortsellers love a vacuum because they can rush in and fill it with their own conversation whether or not it is connected to long term reality.
EXXI/MMR and davy jones 1
Re: EXXI/MMR and davy jones 1
Energy XXI is so much more than Davy Jones. They will be on the road next week to convince others.
HOUSTON, Nov 29, 2012 (GlobeNewswire via COMTEX) -- Energy XXI today announced that Chairman and CEO John Schiller will present at the Dahlman Rose Conference in New York on Tuesday December 4, 2012 at 9:00 a.m. EST. Also on Tuesday December 4, 2012, Executive VP of Exploration and Production Ben Marchive will present at the CapitalOne Southcoast Energy Conference at 2:20 p.m. CST.
HOUSTON, Nov 29, 2012 (GlobeNewswire via COMTEX) -- Energy XXI today announced that Chairman and CEO John Schiller will present at the Dahlman Rose Conference in New York on Tuesday December 4, 2012 at 9:00 a.m. EST. Also on Tuesday December 4, 2012, Executive VP of Exploration and Production Ben Marchive will present at the CapitalOne Southcoast Energy Conference at 2:20 p.m. CST.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EXXI/MMR and davy jones 1
more davy jones will drag it down some more today--------
McMoRan Exploration Co. Updates Operations at Davy Jones No. 1 12/03 07:38 AM
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NEW ORLEANS--(BUSINESS WIRE)-- McMoRan Exploration Co. (MMR:$8.53,00$-0.37,00-4.16%) provided an update on the Davy Jones No. 1 operations currently in progress on South Marsh Island Block 230. As previously reported, the well was opened for testing in November 2012. Completion fluids were recovered from the well but flow was believed to be restricted by residual barite in the perforations (i.e. skin or formation damage). Barite is a heavy component of drilling mud that was used to suppress flow of the well.
Recent operations to stimulate the well by injecting a solvent to dissolve the barite had limited success as a result of insufficient contact of the barite with the solvent. McMoRan is initiating operations to use a propellant stimulation gun to create fractures that will extend beyond the suspected formation damage to attempt to unblock the perforations and if necessary McMoRan may inject additional solvent to make contact and dissolve the barite. McMoRan will provide updates as flow testing operations progress and a measurable flow test is achieved.
Davy Jones involves a large ultra-deep structure encompassing four OCS lease blocks (20,000 acres). McMoRan is the operator and holds a 63.4 percent working interest and a 50.2 percent net revenue interest in Davy Jones. Other working interest owners in Davy Jones include: Energy XXI (EXXI:$31.68,00$-0.27,00-0.85%) (15.8%), JX Nippon Oil Exploration (Gulf) Limited (12%) and Moncrief Offshore LLC (8.8%).
McMoRan Exploration Co. (MMR:$8.53,00$-0.37,00-4.16%) is an independent public company engaged in the exploration, development and production of natural gas and oil in the shallow waters of the GOM Shelf and onshore in the Gulf Coast area. Additional information about McMoRan is available on its internet website “www.mcmoran.com”.
McMoRan Exploration Co. Updates Operations at Davy Jones No. 1 12/03 07:38 AM
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NEW ORLEANS--(BUSINESS WIRE)-- McMoRan Exploration Co. (MMR:$8.53,00$-0.37,00-4.16%) provided an update on the Davy Jones No. 1 operations currently in progress on South Marsh Island Block 230. As previously reported, the well was opened for testing in November 2012. Completion fluids were recovered from the well but flow was believed to be restricted by residual barite in the perforations (i.e. skin or formation damage). Barite is a heavy component of drilling mud that was used to suppress flow of the well.
Recent operations to stimulate the well by injecting a solvent to dissolve the barite had limited success as a result of insufficient contact of the barite with the solvent. McMoRan is initiating operations to use a propellant stimulation gun to create fractures that will extend beyond the suspected formation damage to attempt to unblock the perforations and if necessary McMoRan may inject additional solvent to make contact and dissolve the barite. McMoRan will provide updates as flow testing operations progress and a measurable flow test is achieved.
Davy Jones involves a large ultra-deep structure encompassing four OCS lease blocks (20,000 acres). McMoRan is the operator and holds a 63.4 percent working interest and a 50.2 percent net revenue interest in Davy Jones. Other working interest owners in Davy Jones include: Energy XXI (EXXI:$31.68,00$-0.27,00-0.85%) (15.8%), JX Nippon Oil Exploration (Gulf) Limited (12%) and Moncrief Offshore LLC (8.8%).
McMoRan Exploration Co. (MMR:$8.53,00$-0.37,00-4.16%) is an independent public company engaged in the exploration, development and production of natural gas and oil in the shallow waters of the GOM Shelf and onshore in the Gulf Coast area. Additional information about McMoRan is available on its internet website “www.mcmoran.com”.