McMoRan Exploration Co. Updates Exploration and Development Activities

The Liberty Canal exploratory well located onshore in VermilionParish, Louisiana, has been drilled to 15,742 feet and evaluated withlog-while-drilling tools and confirmed with wireline logs, whichindicated two intervals totaling 199 gross feet with 125 net feet ofhydrocarbon bearing sands. The wireline log indicated excellentporosity with the potential for high flow rates. McMoRan plans to seta liner and drill deeper to evaluate additional targets. Followingdrilling activities, McMoRan will complete the well. Infrastructurenear this onshore location would allow production to be establishedquickly. The Liberty Canal discovery is located on a significantnorth-south ridge where McMoRan controls 13,000 acres and has a numberof additional exploration prospects. The information gained from thiswell will be used to determine future drilling plans for the area.McMoRan and its private partner each have a 37.5 percent workinginterest and a 27.7 percent net revenue interest in the Liberty Canalprospect. The Liberty Canal well commenced drilling on March 5, 2006.

The Pecos exploratory well commenced drilling on January 5, 2006and was drilled to a true vertical depth of 18,795 feet (19,625 feetmeasured depth). Uphole pay sands were evaluated withlog-while-drilling tools and wireline logs, indicating two intervalsof hydrocarbons. The deeper zone encountered 31 net feet ofhydrocarbon bearing sands over a 172 foot gross interval; the upperzone encountered 12 net feet of hydrocarbon bearing sands over a 14foot gross interval. In May 2006, a drill-stem test over the deeperzone resulted in a gross test rate of approximately 15.5 Million cubicfeet of natural gas per day (MMcf/d) and 600 barrels per day (bbls/d)of condensate (7 MMcfe/d net to McMoRan) and no water with a flowingtubing pressure of 2,700 pounds per square inch (psi) on a 31/64thschoke. Production is expected to commence quickly utilizing nearbyinfrastructure. McMoRan and its private partner each own a 50 percentworking interest and a 36.0 net revenue interest in the discovery.McMoRan has rights to approximately 3,500 acres comprising the Pecosand Platte deep gas exploration prospects at West Pecan Island locatedonshore in Vermilion Parish, Louisiana. The Pecos prospect is wasdrilled as a directional well from an offshore location in less than10 feet of water to a bottom hole location onshore.

Since inception in 2004 of a multi-year, $500 million explorationventure, McMoRan and its private partner have participated in elevendiscoveries on the 22 prospects that have been drilled and evaluated.Five additional prospects are either in progress or not fullyevaluated.

The JB Mountain Deep exploration well commenced drilling on July14, 2005 and was drilled to a measured depth of 24,600 feet (truevertical depth of 24,557 feet). Interpretation of wireline logsindicated a gross interval of 115 feet at a depth of approximately21,900 feet that will require further evaluation, as previouslyreported. Wireline logs also indicated an additional deeper intervalof 115 feet of gross thickness at a depth of approximately 24,250feet. The log indicated 115 feet of resistivity with the top 30 grossfeet of the lower interval indicating the best porosity. A liner isbeing set to protect the lower zone and the well will be temporarilyabandoned. Information obtained from the testing of the Blueberry Hillwell at Louisiana State Lease 340 will be incorporated in our futureplans for this well. As previously reported, the Blueberry Hill well,which is located five miles east of JB Mountain Deep, encountered fourpotential productive hydrocarbon bearing sands below 22,200 feet. Bothareas (JB Mountain Deep and Blueberry Hill) demonstrate similargeologic settings and are targeting deep Miocene sands that areequivalent in age. Blueberry Hill well is expected to be tested in thethird quarter of 2006, pending receipt of special tubulars and casingfor this anticipated high pressure well.

McMoRan operates the JB Mountain Deep prospect and, if successful,McMoRan and its private partner would each earn a 35.0 percent workinginterest and a 24.8 percent net revenue interest in the well. McMoRanand its private partner control 5,200 gross acres in the JB MountainDeep area including portions of South Marsh Island Blocks 224, 228 and229. This acreage is not included in the JB Mountain/Mound Pointprogram where McMoRan has a reversionary interest. We have applied forDeep Gas Royalty Relief for this well.

McMoRan currently has three exploratory wells drilling:
Proposed
Net Total
Working Revenue Current Vertical
Interest Interest Depth Depth Spud Date
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Exploration In-Progress
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Onshore Vermilion Parish,
LA March 5,
"Liberty Canal" 37.5% 27.7% 15,600' 16,500' 2006
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St. Mary Parish, LA April 8,
"Laphroaig" 37.5% 27.8% 11,300' 19,000' 2006
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Louisiana State Lease
18091 April 27,
"Long Point Deep" 37.5% 26.8% 4,000' 23,000' 2006
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McMoRan expects to commence drilling at least seven additionalexploratory prospects during 2006. McMoRan currently has rights toapproximately 400,000 gross acres, including over 100,000 gross acresacquired in January 2006 through a farm-in transaction of explorationrights in southern Louisiana and on the Gulf of Mexico shelf. McMoRanis also actively pursuing opportunities through its explorationventure to acquire additional acreage and prospects through farm-in orother arrangements.

PRODUCTION AND DEVELOPMENT ACTIVITIES

McMoRan announced today a successful production test on theHurricane No. 2 development well at South Marsh Island Block 217. Theflow test of the No. 2 well indicated a gross flow rate of 38 MMcf/dand 2,222 barrels of condensate per day (approximately 51 MMcfe/dgross, 10 MMcfe/d net to McMoRan) with flowing tubing pressure ofapproximately 8,800 psi on a 30/64th choke. The No. 2 well is expectedto commence production in May 2006. The well encountered pay in thesame reservoir as the No. 1 well with porosity development thatappears to be equal to or better than the first well. The No. 1discovery well is currently producing at a gross rate of 38 MMcf/d andapproximately 1,300 bbls/d of condensate (9 MMcfe/d net to McMoRan).We plan to commence drilling the Hurricane No. 3 development well inthe second quarter of 2006. McMoRan holds a 27.5 percent workinginterest and a 19.4 percent net revenue interest in this field and hasrights to approximately 7,700 gross acres in the Hurricane area, whichis located offshore Louisiana in 10 feet of water. Production from theHurricane well goes to the Tiger Shoal facilities, which are alsobeing used to produce the JB Mountain and Mound Point discoveries inthe OCS 310/State Lease 340 area.

The Dawson Deep discovery at Garden Banks Block 625 is beingdeveloped as a subsea tieback to Kerr-McGee's adjacent Gunnison sparfacility. A successful production test was conducted on the well inApril 2006. Initial test rates were limited to approximately 1,500bbls/d of oil and 3 MMcf/d (2.9 MMcfe/d net to McMoRan). McMoRanbelieves substantial rate improvements are possible when the well isplaced on production. Production is expected to commence by mid-year2006. McMoRan owns a 30.0 percent working interest and a 24.0 percentnet revenue interest in the Dawson Deep discovery. Kerr-McGee operatesDawson Deep and owns a 25 percent working interest, Nexen PetroleumOffshore U.S.A. Inc. holds a 15 percent working, Energy ResourceTechnology, Inc. holds 10 percent interest and McMoRan's privatepartner holds the remaining 20 percent. This discovery is locatedapproximately 150 miles offshore Texas in over 2,900 feet of water.

In April 2006, initial production commenced at the Cane Ridgediscovery located onshore in Vermilion Parish, Louisiana and King KongNo. 3 development well at Vermilion Blocks 16/17. The Cane Ridge wellis currently producing at a gross flow rate of approximately 6 MMcfe/d(2.4 MMcfe/d net to McMoRan). McMoRan and its private partner each owna 37.5 percent working interest and a 27.5 percent net revenueinterest in the Cane Ridge well. The King Kong No. 3 well is currentlyproducing at a gross flow rate of approximately 12 MMcfe/d (3.5MMcfe/d net to McMoRan). McMoRan and its private partner each have a40.0 percent working interest and a 29.2 percent net revenue interestin the King Kong field, which is located in 12 feet of water.

McMoRan's share of second quarter 2006 production is expected toaverage 55-65 MMcfe/d, including approximately 2,500 bbls/d (14MMcfe/d) for McMoRan's share of oil production from Main Pass Block299. McMoRan current production rate exceeds 60 MMcfe/d and isexpected to increase during the quarter with new production fromHurricane No. 2 and West Cameron Block 43 No. 3. McMoRan's share ofproduction is expected to reach 90 MMcfe/d in the second half of 2006,as new production from four additional wells commence, including LongPoint No. 1 and 2, Dawson Deep and King of the Hill.

McMoRan Exploration Co. is an independent public company engagedin the exploration, development and production of oil and natural gasoffshore in the Gulf of Mexico and onshore in the Gulf Coast area.McMoRan is also pursuing plans for the development of the MPEH(TM)which will be used for the receipt and processing of liquefied naturalgas and the storage and distribution of natural gas. Additionalinformation about McMoRan and the MPEH(TM) project is available on itsinternet website "www.mcmoran.com" and at "www.mpeh.com".

CAUTIONARY STATEMENT: This press release contains certainforward-looking statements regarding various oil and gas discoveries,oil and gas exploration, development and production activities,anticipated and potential production and flow rates; anticipatedrevenues; potential reversionary interests and the potential payout ofthose reversionary interests; the economic potential of properties;and estimated exploration costs. Accuracy of the projections dependson assumptions about events that change over time and is thussusceptible to periodic change based on actual experience and newdevelopments. McMoRan cautions readers that it assumes no obligationto update or publicly release any revisions to the projections in thispress release and, except to the extent required by applicable law,does not intend to update or otherwise revise the projections morefrequently than quarterly. Important factors that might cause futureresults to differ from these projections include: variations in themarket prices of oil and natural gas; drilling results; unanticipatedfluctuations in flow rates of producing wells; oil and natural gasreserves expectations; the ability to satisfy future cash obligationsand environmental costs; and general exploration and development risksand hazards. Such factors and others are more fully described in moredetail in McMoRan's 2005 Annual Report on Form 10-K on file with theSecurities and Exchange Commission.