McMoRan Exploration Co. (McMoRan) is engaged in the exploration, development and production of oil and natural gas offshore in the Gulf of Mexico and onshore in the Gulf Coast area. The Company’s oil and gas operations are conducted through McMoRan Oil & Gas LLC (MOXY), its principal operating subsidiary. The Company’s estimated proved oil and natural gas reserves at December 31, 2008, totaled 344.8 billion cubic feet equivalent (Bcfe), of which 70% represented natural gas reserves. Average daily production from the Company’s properties, net to its interests, approximated 245 million cubic feet equivalent per day (MMcfe/d) in 2008.