McMoRan Exploration Co. Commences Exchange Offer for 5 1/4% Convertible Senior Notes due 2011

NEW ORLEANS--(BUSINESS WIRE)--McMoRan Exploration Co. (NYSE: MMR) announced today an offer to exchange up to $74.7 million aggregate principal amount of 5 1/4% Convertible Senior Notes due 2011 (“Existing Notes”) for an equal principal amount of newly issued 5 1/4% Convertible Senior Notes due 2012 (“New Notes”), plus cash in an amount equal to the accrued and unpaid interest on the Existing Notes through October 5, 2011. The $74.7 million represents the total amount of Existing Notes outstanding. The sole purpose of the exchange offer is to extend the maturity date of the debt underlying the Existing Notes. The terms of the New Notes will be substantially identical to the terms of the Existing Notes, except that the New Notes will have a maturity date of October 6, 2012.