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|                                                        |
|-------------------------------------------------------------|
| UNITED      STATES                                          |
| SECURITIES AND EXCHANGE      COMMISSION                     |
| Washington, D.C.      20549                                 |
|                                                        |
| FORM  10-Q                                                  |
|                                                        |
| (Mark    One)                                               |
| [X]                                                         | QUARTERLY REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE |
| SECURITIES EXCHANGE ACT OF      1934                        |
| For the quarterly period ended      March 31, 2008          |
| OR                                                          |
| [  ]                                              | TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE |
| SECURITIES EXCHANGE ACT OF      1934                        |
| For the transition period      from                         |   | to |
| Commission File Number:      001-07791                      |
|                                                        |
|                                                        |
|                                                        |
| McMoRan Exploration      Co.                                |
| (Exact      name of registrant as specified in its charter) |
|                                                        |

| Delaware                                                                | 72-1424200                             |
|-------------------------------------------------------------------------|----------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) | (IRS      Employer Identification No.) |
|                                                                    |                                   |
| 1615 Poydras      Street                                                |                                   |
| New Orleans,      Louisiana*                                            | 70112                                  |
| (Address      of principal executive offices)                           | (Zip      Code)                        |
|                                                                    |
|                                                                    |
| (504)      582-4000                                                     |
| (Registrant's      telephone number, including area code)               |
|                                                                    |

| Large      accelerated filer o                              | Accelerated      filer S         |
|-------------------------------------------------------------|----------------------------------|
| Non-accelerated      filer o(Do      not check if a smaller | Smaller      reporting company o |
| reporting      company)                                     |                             |

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|                                                             |
|------------------------------------------------------------------|
| McMoRan      Exploration Co.                                     |
| TABLE OF CONTENTS                                                |
|                                                             |
|                                                             | Page |
|                                                             |   |
| Part      I.  Financial Information                    |   |
|                                                             |   |
| Financial      Statements:                                       |   |
|                                                             |   |
| Condensed Consolidated Balance Sheets      (Unaudited)           | 3 |
|                                                             |   |
| Consolidated Statements of Operations      (Unaudited)           | 4 |
|                                                             |   |
| Consolidated Statements of Cash Flow      (Unaudited)            | 5 |
|                                                             |   |
| Notes to Consolidated Financial    Statements                    | 6 |
|                                                             |   |
| Report of Independent Registered Public Accounting      Firm     | 22 |
|                                                             |   |
| Management's Discussion and Analysis                             |   |
| of Financial Condition and Results of      Operations            | 23 |
|                                                             |   |
| Quantitative and Qualitative Disclosures about Market      Risks | 35 |
|                                                             |   |
| Controls and Procedures                                          | 35 |
|                                                             |   |
| Part      II.  Other Information                       | 35 |
|                                                             |   |
| Signature                                                        | 37 |
|                                                             |   |
| Exhibit      Index                                               | E-1 |

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TABLE OF CONTENTS

Part I.  FINANCIAL INFORMATION

| Item      1. | Consolidated Financial      Statements. |
|--------------|-----------------------------------------|

|   | McMoRan      EXPLORATION CO. |
|--------|------------------------------|

CONDENSED CONSOLIDATEDBALANCE SHEETS 

|                                                                          |   | March      31,      |      | December      31, |   |
|-------------------------------------------------------------------------------|--------|---------------------|-----------|-------------------|--------|
|                                                                          |   | 2008                |      | 2007              |   |
|                                                                          |   | (In      Thousands) |      |
| ASSETS                                                                        |   |                |      |              |   |   |   |
| Cash      and cash equivalents                                                |   | $                   | 6,379     |              | $      | 4,830 |   |
| Accounts      receivable                                                      |   |                | 154,675   |              |   | 128,690 |   |
| Inventories                                                                   |   |                | 9,773     |              |   | 11,507 |   |
| Prepaid      expenses                                                         |   |                | 5,861     |              |   | 14,331 |   |
| Fair      value of oil and gas derivative contracts                           |   |                | 87        |              |   | 16,623 |   |
| Current      assets from discontinued operations including restricted    cash |   |                |      |              |   |   |   |
| of      $0.5 million                                                          |   |                | 3,097     |              |   | 3,029 |   |
| Total      current assets                                                     |   |                | 179,872   |              |   | 179,010 |   |
| Property,      plant and equipment, net                                       |   |                | 1,441,544 |              |   | 1,503,359 |   |
| Sulphur      business assets, net                                             |   |                | 345       |              |   | 349 |   |
| Restricted      investments and cash                                          |   |                | 10,818    |              |   | 7,036 |   |
| Fair      value of oil and gas derivative contracts                           |   |                | 961       |              |   | 4,317 |   |
| Deferred      financing costs                                                 |   |                | 20,189    |              |   | 21,217 |   |
| Total      assets                                                             |   | $                   | 1,653,729 |              | $      | 1,715,288 |   |
|                                                                          |   |                |      |              |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                               |   |                |      |              |   |   |   |
| Accounts      payable                                                         |   | $                   | 74,003    |              | $      | 97,821 |   |
| Accrued      liabilities                                                      |   |                | 78,387    |              |   | 68,292 |   |
| 6%      convertible senior notes                                              |   |                | 76,363    |              |   | 100,870 |   |
| Other      short term borrowings                                              |   |                | 2,666     |              |   | 10,665 |   |
| Accrued      interest and dividends payable                                   |   |                | 21,150    |              |   | 13,055 |   |
| Current      portion of accrued oil and gas reclamation costs                 |   |                | 72,453    |              |   | 80,839 |   |
| Current      portion of accrued sulphur reclamation cost                      |   |                | 11,131    |              |   | 12,145 |   |
| Fair      value of oil and gas derivative contracts                           |   |                | 33,751    |              |   | 14,001 |   |
| Current      liabilities from discontinued operations                         |   |                | 2,211     |              |   | 2,624 |   |
| Total      current liabilities                                                |   |                | 372,115   |              |   | 400,312 |   |
| Senior      secured revolving credit facility                                 |   |                | 163,000   |              |   | 274,000 |   |
| 5¼%      convertible senior notes                                        |   |                | 115,000   |              |   | 115,000 |   |
| 11.875%      senior notes                                                     |   |                | 300,000   |              |   | 300,000 |   |
| Accrued      oil and gas reclamation costs                                    |   |                | 231,621   |              |   | 213,898 |   |
| Accrued      sulphur reclamation costs                                        |   |                | 9,327     |              |   | 9,155 |   |
| Contractual      postretirement obligation                                    |   |                | 5,651     |              |   | 6,216 |   |
| Fair      value of oil and gas derivative contracts                           |   |                | 9,464     |              |   | 7,516 |   |
| Other      long-term liabilities                                              |   |                | 16,891    |              |   | 16,962 |   |
| Total      liabilities                                                        |   |                | 1,223,069 |              |   | 1,343,059 |   |
| Stockholders'      equity                                                     |   |                | 430,660   |              |   | 372,229 |   |
| Total      liabilities and stockholders' equity                               |   | $                   | 1,653,729 |              | $      | 1,715,288 |   |
|                                                                          |   |                |      |              |   |   |   |

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TABLE OF CONTENTS

CONSOLIDATED STATEMENTS OFOPERATIONS 

|                                                                     |   | Three      Months Ended  March 31,  |    |
|--------------------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                                     |   | 2008                                          |    | 2007 |   |
|                                                                     |   | (In      Thousands, Except Per Share Amounts) |    |
| Revenues:                                                                |   |                                          |    |   |   |   |   |
| Oil      & Gas                                                       |   | $                                             | 291,946 |   | $ | 51,375 |   |
| Service                                                                  |   |                                          | 3,530   |   |   | 322 |   |
| Total      revenues                                                      |   |                                          | 295,476 |   |   | 51,697 |   |
| Costs      and expenses:                                                 |   |                                          |    |   |   |   |   |
| Production      and delivery costs                                       |   |                                          | 55,646  |   |   | 17,728 |   |
| Depletion,      depreciation and amortization                            |   |                                          | 121,332 |   |   | 27,035 |   |
| Exploration      expenses                                                |   |                                          | 6,813   |   |   | 9,755 |   |
| Loss      on oil and gas derivative contracts                            |   |                                          | 45,231  |   |   | - |   |
| General      and administrative expenses                                 |   |                                          | 9,012   |   |   | 6,397 |   |
| Start-up      costs for Main Pass Energy Hub™                      |   |                                          | 1,617   |   |   | 2,705 |   |
| Total      costs and expenses                                            |   |                                          | 239,651 |   |   | 63,620 |   |
| Operating      income (loss)                                             |   |                                          | 55,825  |   |   | (11,923 | ) |
| Interest      expense, net                                               |   |                                          | (17,111 | ) |   | (5,654 | ) |
| Other      income (expense), net                                         |   |                                          | (627    | ) |   | 748 |   |
| Income      (loss) from continuing operations before income taxes        |   |                                          | 38,087  |   |   | (16,829 | ) |
| Provision      for income taxes                                          |   |                                          | (856    | ) |   | - |   |
| Income      (loss) from continuing operations                            |   |                                          | 37,231  |   |   | (16,829 | ) |
| Income      (loss) from discontinued operations                          |   |                                          | (856    | ) |   | 2,331 |   |
| Net      income (loss)                                                   |   |                                          | 36,375  |   |   | (14,498 | ) |
| Preferred      dividends and amortization of convertible preferred stock |   |                                          |    |   |   |   |   |
| issuance      costs                                                      |   |                                          | (4,366  | ) |   | (405 | ) |
| Net      income (loss) applicable to common stock                        |   | $                                             | 32,009  |   | $ | (14,903 | ) |
|                                                                     |   |                                          |    |   |   |   |   |
| Basic      net income (loss) per share of common stock:                  |   |                                          |    |   |   |   |   |
| Continuing      operations                                               |   |                                          | $0.61   |   |   | $(0.61 | ) |
| Discontinued      operations                                             |   |                                          | (0.02   | ) |   | 0.08 |   |
| Net      income (loss) per share of common stock                         |   |                                          | $0.59   |   |   | $(0.53 | ) |
|                                                                     |   |                                          |    |   |   |   |   |
| Diluted      net income (loss) per share of common stock:                |   |                                          |    |   |   |   |   |
| Continuing      operations                                               |   |                                          | $0.47   |   |   | $(0.61 | ) |
| Discontinued      operations                                             |   |                                          | (0.01   | ) |   | 0.08 |   |
| Net      income (loss) per share of common stock                         |   |                                          | $0.46   |   |   | $(0.53 | ) |
|                                                                     |   |                                          |    |   |   |   |   |
| Average      shares outstanding:                                         |   |                                          |    |   |   |   |   |
| Basic                                                                    |   |                                          | 53,956  |   |   | 28,358 |   |
| Diluted                                                                  |   |                                          | 85,154  |   |   | 28,358 |   |

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TABLE OF CONTENTS

CONSOLIDATED STATEMENTS OFCASH FLOW 

|                                                                 |   | Three      Months Ended |     |
|----------------------------------------------------------------------|--------|-------------------------|----------|
|                                                                 |   | March      31,          |     |
|                                                                 |   | 2008                    |     | 2007 |   |
|                                                                 |   | (In      Thousands)     |     |
| Cash      flow from operating activities:                            |   |                    |     |   |   |   |   |
| Net      income (loss)                                               |   | $                       | 36,375   |   | $ | (14,498 | ) |
| Adjustments      to reconcile net income (loss) to net cash provided |   |                    |     |   |   |   |   |
| by      operating activities:                                        |   |                    |     |   |   |   |   |
| (Income)      loss from discontinued operations                      |   |                    | 856      |   |   | (2,331 | ) |
| Depreciation,      depletion and amortization                        |   |                    | 121,332  |   |   | 27,035 |   |
| Exploration      drilling and related expenditures (reimbursements)  |   |                    | (735     | ) |   | 1,124 |   |
| Compensation      expense associated with stock-based awards         |   |                    | 1,941    |   |   | 6,507 |   |
| Amortization      of deferred financing costs                        |   |                    | 1,256    |   |   | 604 |   |
| Unrealized      loss on oil and gas derivative contracts             |   |                    | 41,591   |   |   | - |   |
| Loss      on induced conversion of convertible senior notes          |   |                    | 699      |   |   | - |   |
| Reclamation      expenditures                                        |   |                    | (912     | ) |   | (721 | ) |
| Prepayment      of reclamation expenditures by third-party owners    |   |                    | 4,146    |   |   | - |   |
| Increase      in restricted cash                                     |   |                    | (3,783   | ) |   | (6 | ) |
| Other                                                                |   |                    | (320     | ) |   | (524 | ) |
| (Increase)      decrease in working capital:                         |   |                    |     |   |   |   |   |
| Accounts      receivable                                             |   |                    | (38,924  | ) |   | (7,613 | ) |
| Accounts      payable and accrued liabilities                        |   |                    | 8,004    |   |   | (8,810 | ) |
| Prepaid      expenses and inventories                                |   |                    | 2,204    |   |   | 10,140 |   |
| Net      cash provided by continuing operations                      |   |                    | 173,730  |   |   | 10,907 |   |
| Net      cash used in discontinued operations                        |   |                    | (914     | ) |   | (2,429 | ) |
| Net      cash provided by operating activities                       |   |                    | 172,816  |   |   | 8,478 |   |
|                                                                 |   |                    |     |   |   |   |   |
| Cash      flow from investing activities:                            |   |                    |     |   |   |   |   |
| Exploration,      development and other capital expenditures         |   |                    | (51,379  | ) |   | (38,379 | ) |
| Acquisition      of oil and gas properties                           |   |                    | (3,500   | ) |   | - |   |
| Increase      in restricted investments                              |   |                    | -        |   |   | (54 | ) |
| Net      cash used in continuing operations                          |   |                    | (54,879  | ) |   | (38,433 | ) |
| Net      cash activity from discontinued operations                  |   |                    | -        |   |   | - |   |
| Net      cash used in investing activities                           |   |                    | (54,879  | ) |   | (38,433 | ) |
|                                                                 |   |                    |     |   |   |   |   |
| Cash      flow from financing activities:                            |   |                    |     |   |   |   |   |
| Payments      under senior secured revolving credit facility, net    |   |                    | (111,000 | ) |   | (28,750 | ) |
| Proceeds      from senior secured term loan                          |   |                    | -        |   |   | 100,000 |   |
| Financing      costs                                                 |   |                    | -        |   |   | (2,177 | ) |
| Dividends      paid on convertible preferred stock                   |   |                    | (4,755   | ) |   | (374 | ) |
| Payments      for induced conversion of convertible senior notes     |   |                    | (699     | ) |   | - |   |
| Proceeds      from exercise of stock options and other               |   |                    | 66       |   |   | 1,109 |   |
| Net      cash (used in) provided by continuing operations            |   |                    | (116,388 | ) |   | 69,808 |   |
| Net      cash activity from discontinued operations                  |   |                    | -        |   |   | - |   |
| Net      cash (used in) provided by financing activities             |   |                    | (116,388 | ) |   | 69,808 |   |
| Net      increase in cash and cash equivalents                       |   |                    | 1,549    |   |   | 39,853 |   |
| Cash      and cash equivalents at beginning of year                  |   |                    | 4,830    |   |   | 17,830 |   |
| Cash      and cash equivalents at end of period                      |   | $                       | 6,379    |   | $ | 57,683 |   |

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TABLE OFCONTENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

| 1.   | BASIS      OF PRESENTATION |
|----------------|----------------------------|

| Cash      paid for acquired assets at closing (August 6, 2007) | $      | 1,076,286 |     |
|----------------------------------------------------------------|--------|-----------|----------|
| Estimated      oil & gas reclamation costs                 |   | 267,537   |     |
| Net      assets acquired at closing                            |   | 1,343,823 |     |
| Post      closing adjustments                                  |   | (35,649   | )      a |
| Other      acquisition related costs                           |   | 13,416    |  b  |
| Net      assets acquired                                       | $      | 1,321,590 |     |

| a.   | Represents      net cash flow from the operation of the acquired properties during the      period from July 1, 2007 (effective date) to August 6, 2007 (closing      date). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Includes      $3.5 million contingency accrual settled in the first quarter of      2008. |
|----------------|-------------------------------------------------------------------------------------------|

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TABLE OFCONTENTS

| Accounts      receivable                                       | $      | 35,649    |   |
|----------------------------------------------------------------|--------|-----------|--------|
| Oil      and gas property, plant and equipment                 |   | 1,321,590 |   |
| Asset      retirement obligations                              |   | (267,537  | )      |
| Other      accrued liabilities                                 |   | (13,416   | )      |
| Cash      paid for acquired assets at closing (August 6, 2007) | $      | 1,076,286 |   |

| Revenues                                                  | $      | 197,293 |   |
|-----------------------------------------------------------|--------|---------|--------|
| Operating      loss                                       |   | (26,682 | )      |
| Net      loss                                             |   | (57,566 | )      |
| Basic      and diluted net loss per share of common stock | $      | (2.03   | )      |

|                                          | March      31, |    | December      31, |   |
|-----------------------------------------------|----------------|---------|-------------------|--------|
|                                          | 2008           |    | 2007              |   |
| Senior      secured revolving credit facility | $              | 163,000 |              | $      | 274,000 |   |
| 11.875%      senior notes                     |           | 300,000 |              |   | 300,000 |   |
| 5¼%      convertible senior notes        |           | 115,000 |              |   | 115,000 |   |
| 6%      convertible senior notes              |           | 76,363  |              |   | 100,870 |   |
| Other                                         |           | 2,666   |              |   | 10,665 |   |
| Total      debt                               |           | 657,029 |              |   | 800,535 |   |
| Less      current maturities                  |           | (79,029 | )                 |   | (111,535 | ) |
| Long-term      debt                           | $              | 578,000 |              | $      | 689,000 |   |

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TABLEOF CONTENTS

| Basic      net income from continuing operations                                                     |   | $      | 32,865 |   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Add:  Preferred      dividends from assumed conversion of  6¾%    mandatory |   |   |   |   |
| convertible      preferred stock                                                                     |   |   | 4,366  |   |
| Add:  Net      interest from assumed conversion of 6% convertible senior      notes        |   |   | 1,297  |   |
| Add:  Net      interest from assumed conversion of 5¼% convertible senior      notes  |   |   | 1,565  |   |
| Diluted      net income from continuing operations                                                   |   |   | 40,093 |   |
| Loss      from discontinued operations                                                               |   |   | (856   | )      |
| Diluted      net income applicable to common stock                                                   |   | $      | 39,237 |   |

| Weighted      average common shares outstanding for purpose of    calculating               |   |   |   |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| basic      net income per share                                                             |   |   | 53,956 |   |
| Assumed      exercise of dilutive stock options a,      b                                   |   |   | 1,008  |   |
| Assumed      exercise of stock warrants a,      c                                           |   |   | 504    |   |
| Assumed      conversion of 6¾% mandatory convertible preferred stock      d            |   |   | 17,389 |   |
| Assumed      conversion of 6% convertible senior notes      e                               |   |   | 5,359  |   |
| Assumed      conversion of 5¼% convertible senior notes f                              |   |   | 6,938  |   |
| Weighted      average common shares outstanding                                             |   |   |   |   |
|      for      purposes of calculating diluted net income per share |   |   | 85,154 |   |

| Diluted      net income per share from continuing operations |   |   | $0.47 |   |
|--------------------------------------------------------------|--------|--------|-------|--------|
| Diluted      net loss per share from discontinued operations |   |   | (0.01 | )      |
| Diluted      net income per share                            |   |   | $0.46 |   |

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TABLE OFCONTENTS

| Stock      options a,      b             |   |   | 608    |   |
|------------------------------------------|--------|--------|--------|--------|
| Stock      warrants a,      c            |   |   | 1,511  |   |
| 5%      convertible preferred stock g    |   |   | 6,205  |   |
| 6%      convertible senior notes e       |   |   | 7,079  |   |
| 5¼%      convertible senior notes f |   |   | 6,938  |   |
|                                     |   |   |   |   |

| a.   | McMoRan      uses the treasury stock method to determine total shares relating to      in-the-money stock options and stock warrants to include in its diluted      earning per share calculation. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Represents      stock options with an exercise price less than the average market price      for McMoRan’s common stock for the periods  presented. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Includes      in-the-money stock warrants issued to K1 USA Energy Production Corporation      in December 2002 (1.74 million shares) and September 2003 (0.76 million      shares).  The warrants are exercisable for McMoRan common stock      at any time over their respective five-year terms at an exercise price of      $5.25 per share.  In December 2007, the stock warrant for 1.74      million common shares was exercised.  See Note 5 of McMoRan’s      2007 Form 10-K for additional information regarding the      warrants. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | See      Note 8 of McMoRan’s 2007 Form 10-K for information regarding McMoRan’s 6¾%      mandatory convertible preferredstock. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| e.   | The      6% convertible senior notes, issued in July 2003, are convertible at the      option of the holder at any time prior to their maturity on July 2, 2008      into shares of McMoRan common stock at a conversion price of $14.25 per      share.  Net interest expense on the 6% convertible senior notes      totaled $1.3 million and $1.5 million during the first quarter of 2008 and      2007, respectively. Additional information regarding McMoRan’s 6%      convertible senior notes is disclosed in Note 6 of the 2007 Form      10-K. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f.   | The      5¼% convertible senior notes, issued in October 2004, are convertible at      the option of the holder at any time prior to their maturity on October 6,      2011 into shares of McMoRan common stock at a conversion price of $16.575      per share.   Net interest expense on the 5¼% convertible      senior notes totaled $1.6 and $1.4 million during the first quarter of      2008 and 2007, respectively. Additional information regarding McMoRan’s      5¼% convertible senior notes is disclosed in Note 6 of the 2007 Form      10-K. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g.   | See      Note 8 of McMoRan’s 2007 Form 10-K for information regarding McMoRan’s 5%      mandatorily redeemable convertible preferred stock, including the      conversion of the shares into approximately 6.2 million shares of common      stock during 2007. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | First      Quarter |   |
|-----------------------------------------|--------|--------------------|--------|
|                                    |   | 2008               |   |   | 2007 |   |
| Outstanding      options (in thousands) |   |               | 4,416  |   |   |   | 5,730 |   |
| Average      exercise price per share   |   | $                  | 18.01  |   |   | $ | 17.44 |   |

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TABLE OF CONTENTS

|   | Natural      Gas Positions (million MMbtu)                                        |
|--------|-----------------------------------------------------------------------------------|
|   | Open      Swap Positions a                                                        |   | Put      Options b |   |   |
|   | Annual                                                                            |   | Average |   | Annual |   | Average |   | Total |
|   | Volumes                                                                           |   | Swap      Price      c |   | Volumes |   | Floor      c |   | Volumes |
| 2008   | 8.8                                                                               |   | $ |  8.68 |   |              6.6 |   | $ |  6.00 |   | 15.4 |
| 2009   |              7.3 |   | $ |  8.97 |   |              3.2 |   | $ |  6.00 |   | 10.5 |
| 2010   |              2.6 |   | $ |  8.63 |   |              1.2 |   | $ |  6.00 |   | 3.8 |

|   | Oil      Positions (thousand bbls)                                          |
|--------|-----------------------------------------------------------------------------|
|   | Open      Swap Positions a                                                  |   | Put      Options b |   |   |
|   | Annual                                                                      |   | Average |   | Annual |   | Average |   | Total |
|   | Volumes                                                                     |   | Swap      Price d |   | Volumes |   | Floor      d |   | Volumes |
| 2008   | 379                                                                         |   | $ |  73.29 |   |             288 |   | $ |  50.00 |   | 667 |
| 2009   |             322 |   | $ |  71.82 |   |             125 |   | $ |  50.00 |   | 447 |
| 2010   |             118 |   | $ |  70.89 |   |               50 |   | $ |  50.00 |   | 168 |

| a.   | Covering      periods January-June and November-December of the respective      years.  Contracts for the period January-March 2008 have been      settled, resulting in realized losses of $3.6  million. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Covering      periods July-October of the respectiveyears. |
|----------------|------------------------------------------------------------|

| c.   | Price      per MMbtu of natural gas. |
|----------------|--------------------------------------|

| d.   | Price      per barrel of oil. |
|----------------|-------------------------------|

|                                          |   | Realized |   |   | Unrealized |   |   | Total  |   |
|-----------------------------------------------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Gas      puts                                 | $      | -        |   | $      | 1,597      |   | $      | 1,597  |   |
| Oil      puts                                 |   | -        |   |   | 6          |   |   | 6      |   |
| Gas      swaps                                |   | (3,872   | )      |   | 40,596     |   |   | 36,724 |   |
| Oil      swaps                                |   | 7,512    |   |   | (608       | )      |   | 6,904  |   |
| Loss      on oil and gas derivative contracts | $      | 3,640    |   | $      | 41,591     |   | $      | 45,231 |   |

|                             | Puts   |   | Swaps  |   |   |   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                             | Gas    |   | Oil    |   | Gas    |   | Oil    |   | Total |   |
| Current      assets              | $      | 85     |   | $      | 2      |   | $      | - |   | $ | - |   | $ | 87 |   |
| Other      assets                |   | 773    |   |   | 78     |   |   | 110 |   |   | - |   |   | 961 |   |
| Current      liabilities         |   | -      |   |   | -      |   |   | (20,128 | ) |   | (13,623 | ) |   | (33,751 | ) |
| Other      long-term liabilities |   | -      |   |   | -      |   |   | (2,913 | ) |   | (6,551 | ) |   | (9,464 | ) |
| Fair      value of contracts     | $      | 858    |   | $      | 80     |   | $      | (22,931 | ) | $ | (20,174 | ) | $ | (42,167 | ) |

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TABLEOF CONTENTS

| Oil and Natural      Gas                              |   |    |   |
|-------------------------------------------------------|--------|---------|--------|
| Asset      retirement obligation at beginning of year | $      | 294,737 |   |
| Liabilities      settled                              |   | (846    | )a     |
| Accretion      expense                                |   | 5,982   |   |
| Reclamation      costs assumed from third parties     |   | 4,146   | b      |
| Incurred      liabilities                             |   | 55      |   |
| Revision      for changes in estimates                |   | -       |   |
| Asset      retirement obligations at March 31, 2008   | $      | 304,074 |   |

|                                                    |   |   |   |
|---------------------------------------------------------|--------|--------|--------|
| Sulphur                                                 |   |   |   |
| Asset      retirement obligations at beginning of year: | $      | 21,300 |   |
| Liabilities      settled                                |   | (1,059 | )      |
| Accretion      expense                                  |   | 217    |   |
| Revision      for changes in estimates                  |   | -      |   |
| Asset      retirement obligation at March 31, 2008      | $      | 20,458 |   |

|   | a.  Approximately      $0.1 million of costs paid in 2008 relate to amounts that were included in      accounts payable at December 31,2007. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.  Represents      reimbursement paid to McMoRan for future reclamation      expenditures.  McMoRan has assumed the third parties’      reclamation liability in these specificfields. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                     | Pension      Benefits |   | Other      Benefits |   |
|------------------------------------------|-----------------------|--------|---------------------|--------|
|                                     | 2008                  |   | 2007                |   | 2008 |   | 2007 |   |
| Service      cost                        | $                     | -      |                | $      | - |   | $ | 7 |   | $ | 5 |   |
| Interest      cost                       |                  | 22     |                |   | 58 |   |   | 84 |   |   | 86 |   |
| Return      on plan assets               |                  | (9     | )                   |   | (18 | ) |   | - |   |   | - |   |
| Amortization      of prior service costs |                  |   |                |   |   |   |   |   |   |   |   |   |
| and      actuarial gains                 |                  | -      |                |   | - |   |   | (1 | ) |   | 14 |   |
| Net      periodic benefit expense        | $                     | 13     |                | $      | 40 |   | $ | 90 |   | $ | 105 |   |

|                                                               |   |   |   |   | Three      Months Ended |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|-------------------------|--------|
|                                                               |   |   |   |   | March      31,          |   |
|                                                               |   |   |   |   | 2008                    |   | 2007 |   |
| Stock      options awarded to employees (including directors)      |   |   |   |   | $                       | 1,781  |   | $ | 6,281 |   |
| Stock      options awarded to non-employees and advisory directors |   |   |   |   |                    | 128    |   |   | 220 |   |
| Restricted      stock units                                        |   |   |   |   |                    | 32     |   |   | 6 |   |
| Total      compensation cost                                       |   |   |   |   | $                       | 1,941  |   | $ | 6,507 |   |

|                                                 | Three      Months Ended March 31, |   |
|------------------------------------------------------|-----------------------------------|--------|
|                                                 | 2008                              |   | 2007 |   |
| Net      income (loss)                               | $                                 | 36,375 |   | $ | (14,498 | ) |
| Other      comprehensive income (loss)               |                              |   |   |   |   |   |
| Amortization      of previously unrecognized pension |                              |   |   |   |   |   |
| components,      net                                 |                              | (1     | ) |   | 14 |   |
| Comprehensive      income (loss)                     | $                                 | 36,374 |   | $ | (14,484 | ) |

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| ·   | Level      1:  valuations consist of unadjusted quoted prices in active markets      for identical assets and liabilities and has the highest      priority; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      2:  valuations rely on quoted prices in markets that are not active      or observable inputs over the full term of the asset or      liability; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      3:  valuations are based on prices or third party or internal      valuation models that require inputs that are significant to the fair      value measurement and are less observable and thus have the lowest      priority. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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TABLE OFCONTENTS

|                                                  |   |                |      |   |   | Freeport  |   |         |    | Consolidated |   |
|-------------------------------------------------------|--------|---------------------|-----------|--------|--------|-----------|--------|--------------|---------|--------------|--------|
|                                                  |   | Parent              |      | MOXY   |   | Energy    |   | Eliminations |    | McMoRan      |   |
|                                                  |   | (in      Thousands) |      |
| ASSETS                                                |   |                |      |   |   |      |   |         |    |         |   |   |   |   |   |   |
| Current      assets:                                  |   |                |      |   |   |      |   |         |    |         |   |   |   |   |   |   |
| Cash      and cash equivalents                        |   | $                   | 150       |   | $      | 6,001     |   | $            | 228     |         | $      | - |   | $ | 6,379 |   |
| Accounts      receivable                              |   |                | -         |   |   | 154,675   |   |         | -       |         |   | - |   |   | 154,675 |   |
| Inventories                                           |   |                | -         |   |   | 9,773     |   |         | -       |         |   | - |   |   | 9,773 |   |
| Prepaid      expenses                                 |   |                | 3,675     |   |   | 2,186     |   |         | -       |         |   | - |   |   | 5,861 |   |
| Fair      value of derivative contracts               |   |                | -         |   |   | 87        |   |         | -       |         |   | - |   |   | 87 |   |
| Current      assets from discontinued                 |   |                |      |   |   |      |   |         |    |         |   |   |   |   |   |   |
| operations                                            |   |                | -         |   |   | -         |   |         | 3,097   |         |   | - |   |   | 3,097 |   |
| Total      current assets                             |   |                | 3,825     |   |   | 172,722   |   |         | 3,325   |         |   | - |   |   | 179,872 |   |
| Property,      plant and equipment, net               |   |                | -         |   |   | 1,441,513 |   |         | 31      |         |   | - |   |   | 1,441,544 |   |
| Sulphur      business assets, net                     |   |                | -         |   |   | -         |   |         | 345     |         |   | - |   |   | 345 |   |
| Investment      in subsidiaries                       |   |                | 1,026,971 |   |   | -         |   |         | -       |         |   | (1,026,971 | ) |   | - |   |
| Amounts      due from affiliates                      |   |                | -         |   |   | 81,349    |   |         | 3,953   |         |   | (85,302 | ) |   | - |   |
| Deferred      financing costs and other               |   |                |      |   |   |      |   |         |    |         |   |   |   |   |   |   |
| assets                                                |   |                | 13,663    |   |   | 18,178    |   |         | 127     |         |   | - |   |   | 31,968 |   |
| Total      assets                                     |   | $                   | 1,044,459 |   | $      | 1,713,762 |   | $            | 7,781   |         | $      | (1,112,273 | ) | $ | 1,653,729 |   |
|                                                  |   |                |      |   |   |      |   |         |    |         |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY       |   |                |      |   |   |      |   |         |    |         |
| Currentliabilities:                                   |   |                |      |   |   |      |   |         |    |         |   |   |   |   |   |   |
| Accounts      payable                                 |   |                | 223       |   |   | 73,659    |   |         | 121     |         |   | - |   | $ | 74,003 |   |
| Accrued      liabilities                              |   |                | 2,338     |   |   | 75,085    |   |         | 964     |         |   | - |   |   | 78,387 |   |
| Current      portion of debt                          |   |                | 79,029    |   |   | -         |   |         | -       |         |   | - |   |   | 79,029 |   |
| Current      portion of oil and gas                   |   |                |      |   |   |      |   |         |    |         |   |   |   |   |   |   |
| accrued      reclamation costs                        |   |                | -         |   |   | 72,453    |   |         | -       |         |   | - |   |   | 72,453 |   |
| Other      current liabilities                        |   |                | 19,870    |   |   | 35,031    |   |         | -       |         |   | - |   |   | 54,901 |   |
| Current      liabilities from discontinued            |   |                |      |   |   |      |   |         |    |         |   |   |   |   |   |   |
| operations                                            |   |                | -         |   |   | -         |   |         | 13,342  |         |   | - |   |   | 13,342 |   |
| Total      current liabilities                        |   |                | 101,460   |   |   | 256,228   |   |         | 14,427  |         |   | - |   |   | 372,115 |   |
| Long-term      debt                                   |   |                | 415,000   |   |   | 163,000   |   |         | -       |         |   | - |   |   | 578,000 |   |
| Amounts      due to affiliates                        |   |                | 85,302    |   |   | -         |   |         | -       |         |   | (85,302 | ) |   | - |   |
| Accrued      oil and gas reclamation costs            |   |                | -         |   |   | 231,621   |   |         | -       |         |   | - |   |   | 231,621 |   |
| Accrued      sulphur reclamation costs                |   |                | -         |   |   | -         |   |         | 9,327   |         |   | - |   |   | 9,327 |   |
| Other      long-term liabilities                      |   |                | 12,037    |   |   | 11,182    |   |         | 8,787   |         |   | - |   |   | 32,006 |   |
| Total      liabilities                                |   |                | 613,799   |   |   | 662,031   |   |         | 32,541  |         |   | (85,302 | ) |   | 1,223,069 |   |
| Commitments      and contingencies                    |   |                |      |   |   |      |   |         |    |         |   |   |   |   |   |   |
| Stockholders’      equity (deficit)             |   |                | 430,660   |   |   | 1,051,731 |   |         | (24,760 | )            |   | (1,026,971 | ) |   | 430,660 |   |
| Total      liabilities and stockholders’ equity |   | $                   | 1,044,459 |   | $      | 1,713,762 |   | $            | 7,781   |         | $      | (1,112,273 | ) | $ | 1,653,729 |   |

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TABLE OFCONTENTS

|                                                  |   |                |    |   |   | Freeport  |   |         |    |    |   |
|-------------------------------------------------------|--------|---------------------|---------|--------|--------|-----------|--------|--------------|---------|---------|--------|
|                                                  |   | McMoRan             |    | MOXY   |   | Energy    |   | Eliminations |    | McMoRan |   |
|                                                  |   | (in      Thousands) |    |
| ASSETS                                                |   |                |    |   |   |      |   |         |    |    |   |   |   |   |   |   |
| Current      assets:                                  |   |                |    |   |   |      |   |         |    |    |   |   |   |   |   |   |
| Cash      and cash equivalents                        |   | $                   | 143     |   | $      | 3,446     |   | $            | 1,241   |    | $      | - |   | $ | 4,830 |   |
| Accounts      receivable                              |   |                | 885     |   |   | 127,805   |   |         | -       |    |   | - |   |   | 128,690 |   |
| Inventories                                           |   |                | -       |   |   | 11,507    |   |         | -       |    |   | - |   |   | 11,507 |   |
| Prepaid      expenses                                 |   |                | 12,833  |   |   | 1,498     |   |         | -       |    |   | - |   |   | 14,331 |   |
| Fair      value of derivative contracts               |   |                | -       |   |   | 16,623    |   |         | -       |    |   | - |   |   | 16,623 |   |
| Current      assets from discontinued                 |   |                |    |   |   |      |   |         |    |    |   |   |   |   |   |   |
| operations                                            |   |                | -       |   |   | -         |   |         | 3,029   |    |   | - |   |   | 3,029 |   |
| Total      current assets                             |   |                | 13,861  |   |   | 160,879   |   |         | 4,270   |    |   | - |   |   | 179,010 |   |
| Property,      plant and equipment, net               |   |                | -       |   |   | 1,503,328 |   |         | 31      |    |   | - |   |   | 1,503,359 |   |
| Sulphur      business assets, net                     |   |                | -       |   |   | -         |   |         | 349     |    |   | - |   |   | 349 |   |
| Investment      in subsidiaries                       |   |                | 971,176 |   |   | -         |   |         | -       |    |   | (971,176 | ) |   | - |   |
| Amounts      due from affiliates                      |   |                | -       |   |   | 68,341    |   |         | 5,987   |    |   | (74,328 | ) |   | - |   |
| Deferred      financing costs and other               |   |                |    |   |   |      |   |         |    |    |   |   |   |   |   |   |
| Assets                                                |   |                | 14,135  |   |   | 18,308    |   |         | 127     |    |   | - |   |   | 32,570 |   |
| Total      assets                                     |   | $                   | 999,172 |   | $      | 1,750,856 |   | $            | 10,764  |    | $      | (1,045,504 | ) | $ | 1,715,288 |   |
|                                                  |   |                |    |   |   |      |   |         |    |    |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY       |   |                |    |   |   |      |   |         |    |    |
| Currentliabilities:                                   |   |                |    |   |   |      |   |         |    |    |   |   |   |   |   |   |
| Accounts      payable                                 |   |                | 222     |   |   | 97,300    |   |         | 299     |    |   | - |   | $ | 97,821 |   |
| Accrued      liabilities                              |   |                | 2,110   |   |   | 65,006    |   |         | 1,176   |    |   | - |   |   | 68,292 |   |
| Current      portion of debt                          |   |                | 111,535 |   |   | -         |   |         | -       |    |   | - |   |   | 111,535 |   |
| Current      portion of oil and gas                   |   |                |    |   |   |      |   |         |    |    |   |   |   |   |   |   |
| accrued      reclamation costs                        |   |                | -       |   |   | 80,839    |   |         | -       |    |   | - |   |   | 80,839 |   |
| Other      current liabilities                        |   |                | 11,723  |   |   | 15,333    |   |         | -       |    |   | - |   |   | 27,056 |   |
| Current      liabilities from discontinued            |   |                |    |   |   |      |   |         |    |    |   |   |   |   |   |   |
| operations                                            |   |                | -       |   |   | -         |   |         | 14,769  |    |   | - |   |   | 14,769 |   |
| Total      current liabilities                        |   |                | 125,590 |   |   | 258,478   |   |         | 16,244  |    |   | - |   |   | 400,312 |   |
| Long-term      debt                                   |   |                | 415,000 |   |   | 274,000   |   |         | -       |    |   | - |   |   | 689,000 |   |
| Amounts      due to affiliates                        |   |                | 74,328  |   |   | -         |   |         | -       |    |   | (74,328 | ) |   | - |   |
| Accrued      oil and gas reclamation costs            |   |                | -       |   |   | 213,898   |   |         | -       |    |   | - |   |   | 213,898 |   |
| Accrued      sulphur reclamation costs                |   |                | -       |   |   | -         |   |         | 9,155   |    |   |   |   |   | 9,155 |   |
| Other      long-term liabilities                      |   |                | 12,025  |   |   | 9,245     |   |         | 9,424   |    |   | - |   |   | 30,694 |   |
| Total      liabilities                                |   |                | 626,943 |   |   | 755,621   |   |         | 34,823  |    |   | (74,328 | ) |   | 1,343,059 |   |
| Commitments      and contingencies                    |   |                |    |   |   |      |   |         |    |    |   |   |   |   |   |   |
| Stockholders’      equity (deficit)             |   |                | 372,229 |   |   | 995,235   |   |         | (24,059 | )       |   | (971,176 | ) |   | 372,229 |   |
| Total      liabilities and stockholders’ equity |   | $                   | 999,172 |   | $      | 1,750,856 |   | $            | 10,764  |    | $      | (1,045,504 | ) | $ | 1,715,288 |   |

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TABLE OFCONTENTS

|                                          |   |                |    |   |   | Freeport |   |         |   | Consolidated |   |
|-----------------------------------------------|--------|---------------------|---------|--------|--------|----------|--------|--------------|--------|--------------|--------|
|                                          |   | Parent              |    | MOXY   |   | Energy   |   | Eliminations |   | McMoRan      |   |
|                                          |   | (In      Thousands) |    |
| Revenues:                                     |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| Oil      and gas                              |   | $                   | -       |   | $      | 291,946  |   | $            | -      |         | $      | - |   | $ | 291,946 |   |
| Service                                       |   |                | -       |   |   | 3,530    |   |         | -      |         |   | - |   |   | 3,530 |   |
| Total      revenues                           |   |                | -       |   |   | 295,476  |   |         | -      |         |   | - |   |   | 295,476 |   |
| Costs      and expenses:                      |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| Production      and delivery costs            |   |                | -       |   |   | 55,660   |   |         | (14    | )            |   | - |   |   | 55,646 |   |
| Depreciation      and amortization            |   |                | -       |   |   | 121,332  |   |         | -      |         |   | - |   |   | 121,332 |   |
| Exploration      expenses                     |   |                | -       |   |   | 6,813    |   |         | -      |         |   | - |   |   | 6,813 |   |
| Loss      on oil and gas derivative contracts |   |                | -       |   |   | 45,231   |   |         | -      |         |   | - |   |   | 45,231 |   |
| General      and administrative expenses      |   |                | 1,900   |   |   | 7,008    |   |         | 104    |         |   | - |   |   | 9,012 |   |
| Start-up      costs for Main Pass             |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| Energy      HubTM                             |   |                | -       |   |   | -        |   |         | 1,617  |         |   | - |   |   | 1,617 |   |
| Total      costs and expenses                 |   |                | 1,900   |   |   | 236,044  |   |         | 1,707  |         |   | - |   |   | 239,651 |   |
| Operating      income (loss)                  |   |                | (1,900  | )      |   | 59,432   |   |         | (1,707 | )            |   | - |   |   | 55,825 |   |
| Interest      expense                         |   |                | (12,406 | )      |   | (4,705   | )      |         | -      |         |   | - |   |   | (17,111 | ) |
| Equity      in earnings of consolidated       |   |                |    |   |   |     |   |         |   |         |   |   |   |   | - |   |
| subsidiaries                                  |   |                | 52,219  |   |   | -        |   |         | -      |         |   | (52,219 | ) |   | - |   |
| Other      income (expense), net              |   |                | (682    | )      |   | 55       |   |         |   |         |   |   |   |   | (627 | ) |
| Income      (loss) from continuing operations |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| before      income taxes                      |   |                | 37,231  |   |   | 54,782   |   |         | (1,707 | )            |   | (52,219 | ) |   | 38,087 |   |
| Provision      for income taxes               |   |                | (856    | )      |   | -        |   |         | -      |         |   | - |   |   | (856 | ) |
| Income      (loss) from continuing operations |   |                | 36,375  |   |   | 54,782   |   |         | (1,707 | )            |   | (52,219 | ) |   | 37,231 |   |
| Loss      from discontinued operations        |   |                | -       |   |   | -        |   |         | (856   | )            |   | - |   |   | (856 | ) |
| Net      income (loss)                        |   |                | 36,375  |   |   | 54,782   |   |         | (2,563 | )            |   | (52,219 | ) |   | 36,375 |   |
| Preferred      dividends and amortization     |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| of      convertible preferred stock           |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| issuance      costs                           |   |                | (4,366  | )      |   | -        |   |         | -      |         |   | - |   |   | (4,366 | ) |
| Net      income (loss) applicable to          |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| common      stock                             |   | $                   | 32,009  |   | $      | 54,782   |   | $            | (2,563 | )            | $      | (52,219 | ) | $ | 32,009 |   |
|                                          |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |

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TABLE OFCONTENTS

|                                          |   |                |    |   |   | Freeport |   |         |   | Consolidated |   |
|-----------------------------------------------|--------|---------------------|---------|--------|--------|----------|--------|--------------|--------|--------------|--------|
|                                          |   | Parent              |    | MOXY   |   | Energy   |   | Eliminations |   | McMoRan      |   |
|                                          |   | (In      Thousands) |    |
| Revenues:                                     |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| Oil      and gas                              |   | $                   | -       |   | $      | 51,375   |   | $            | -      |         | $      | - |   | $ | 51,375 |   |
| Service                                       |   |                | -       |   |   | 322      |   |         | -      |         |   | - |   |   | 322 |   |
| Total      revenues                           |   |                | -       |   |   | 51,697   |   |         | -      |         |   | - |   |   | 51,697 |   |
| Costs      and expenses:                      |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| Production      and delivery costs            |   |                | -       |   |   | 17,743   |   |         | (15    | )            |   | - |   |   | 17,728 |   |
| Depreciation      and amortization            |   |                | -       |   |   | 27,035   |   |         | -      |         |   | - |   |   | 27,035 |   |
| Exploration      expenses                     |   |                | -       |   |   | 9,755    |   |         | -      |         |   | - |   |   | 9,755 |   |
| General      and administrative expenses      |   |                | 1,221   |   |   | 5,126    |   |         | 50     |         |   | - |   |   | 6,397 |   |
| Loss      on oil and gas derivative contracts |   |                | -       |   |   | -        |   |         | -      |         |   | - |   |   | - |   |
| Start-up      costs for Main Pass             |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| Energy      HubTM                             |   |                | -       |   |   | -        |   |         | 2,705  |         |   | - |   |   | 2,705 |   |
| Total      costs and expenses                 |   |                | 1,221   |   |   | 59,659   |   |         | 2,740  |         |   | - |   |   | 63,620 |   |
| Operating      loss                           |   |                | (1,221  | )      |   | (7,962   | )      |         | (2,740 | )            |   | - |   |   | (11,923 | ) |
| Interest      expense                         |   |                | (3,473  | )      |   | (2,181   | )      |         | -      |         |   | - |   |   | (5,654 | ) |
| Equity      in losses of                      |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| consolidated      subsidiaries                |   |                | (10,289 | )      |   | -        |   |         | -      |         |   | 10,289 |   |   | - |   |
| Other      income, net                        |   |                | 485     |   |   | 263      |   |         |   |         |   |   |   |   | 748 |   |
| Income      (loss) from continuing operations |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| before      income taxes                      |   |                | (14,498 | )      |   | (9,880   | )      |         | (2,740 | )            |   | 10,289 |   |   | (16,829 | ) |
| Provision      for income taxes               |   |                | -       |   |   | -        |   |         | -      |         |   | - |   |   | - |   |
| Income      (loss) from continuing operations |   |                | (14,498 | )      |   | (9,880   | )      |         | (2,740 | )            |   | 10,289 |   |   | (16,829 | ) |
| Income      from discontinued operations      |   |                | -       |   |   | 122      |   |         | 2,209  |         |   | - |   |   | 2,331 |   |
| Net      income (loss)                        |   |                | (14,498 | )      |   | (9,758   | )      |         | (531   | )            |   | 10,289 |   |   | (14,498 | ) |
| Preferred      dividends and amortization     |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| of      convertible preferred stock           |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| issuance      costs                           |   |                | (405    | )      |   | -        |   |         | -      |         |   | - |   |   | (405 | ) |
| Net      income (loss) applicable to          |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |
| common      stock                             |   | $                   | (14,903 | )      | $      | (9,758   | )      | $            | (531   | )            | $      | 10,289 |   | $ | (14,903 | ) |
|                                          |   |                |    |   |   |     |   |         |   |         |   |   |   |   |   |   |

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|                                            |   |                |   |   |   | Freeport |   | Consolidated |   |
|-------------------------------------------------|--------|---------------------|--------|--------|--------|----------|--------|--------------|--------|
|                                            |   | Parent              |   | MOXY   |   | Energy   |   | McMoRan      |   |
|                                            |   | (In      Thousands) |   |
|                                            |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Cash      flow from operating activities:       |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Net      cash provided by (used in)             |   |                |   |   |   |     |   |         |   |   |   |   |   |
| continuing      operations                      |   | $                   | 7,197  |   | $      | 168,434  |   | $            | (1,901 | ) | $ | 173,730 |   |
| Net      cash used in discontinued operations   |   |                | -      |   |   | -        |   |         | (914   | ) |   | (914 | ) |
| Net      cash provided by (used in)             |   |                |   |   |   |     |   |         |   |   |   |   |   |
| operating      activities                       |   |                | 7,197  |   |   | 168,434  |   |         | (2,815 | ) |   | 172,816 |   |
|                                            |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Cash      flow from investing activities:       |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Exploration,      development and other         |   |                |   |   |   |     |   |         |   |   |   |   |   |
| capital      expenditures                       |   |                | -      |   |   | (51,379  | )      |         | -      |   |   | (51,379 | ) |
| Acquisition      of oil and gas properties, net |   |                | -      |   |   | (3,500   | )      |         | -      |   |   | (3,500 | ) |
| Net      cash used in investing activities      |   |                | -      |   |   | (54,879  | )      |         | -      |   |   | (54,879 | ) |
|                                            |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Cash      flow from financing activities:       |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Net      payments under revolving credit        |   |                |   |   |   |     |   |         |   |   |   |   |   |
| facility                                        |   |                | -      |   |   | (111,000 | )      |         | -      |   |   | (111,000 | ) |
| Dividends      paid on convertible preferred    |   |                |   |   |   |     |   |         |   |   |   |   |   |
| stock                                           |   |                | (4,755 | )      |   | -        |   |         | -      |   |   | (4,755 | ) |
| Payments      for induced conversion of         |   |                |   |   |   |     |   |         |   |   |   |   |   |
| convertible      senior notes                   |   |                | (699   | )      |   | -        |   |         | -      |   |   | (699 | ) |
| Proceeds      from exercise of stock            |   |                |   |   |   |     |   |         |   |   |   |   |   |
| options,      warrants and other                |   |                | 66     |   |   | -        |   |         | -      |   |   | 66 |   |
| Investment      from parent                     |   |                | (1,802 | )      |   | -        |   |         | 1,802  |   |   | - |   |
| Net      cash provided by (used in)             |   |                |   |   |   |     |   |         |   |   |   |   |   |
| financing      activities                       |   |                | (7,190 | )      |   | (111,000 | )      |         | 1,802  |   |   | (116,388 | ) |
|                                            |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Net      increase (decrease) in cash and        |   |                |   |   |   |     |   |         |   |   |   |   |   |
| cash      equivalents                           |   |                | 7      |   |   | 2,555    |   |         | (1,013 | ) |   | 1,549 |   |
| Cash      and cash equivalents at beginning     |   |                |   |   |   |     |   |         |   |   |   |   |   |
| of      year                                    |   |                | 143    |   |   | 3,446    |   |         | 1,241  |   |   | 4,830 |   |
| Cash      and cash equivalents at end of        |   |                |   |   |   |     |   |         |   |   |   |   |   |
| year                                            |   | $                   | 150    |   | $      | 6,001    |   | $            | 228    |   | $ | 6,379 |   |
|                                            |   |                |   |   |   |     |   |         |   |   |   |   |   |

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|                                         |   |                |   |   |   | Freeport |   | Consolidated |   |
|----------------------------------------------|--------|---------------------|--------|--------|--------|----------|--------|--------------|--------|
|                                         |   | Parent              |   | MOXY   |   | Energy   |   | McMoRan      |   |
|                                         |   | (In      Thousands) |   |
|                                         |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Cash      flow from operating activities:    |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Net      cash provided by (used in)          |   |                |   |   |   |     |   |         |   |   |   |   |   |
| continuing      operations                   |   | $                   | 19,668 |   | $      | (9,149   | )      | $            | 388    |   | $ | 10,907 |   |
| Net      cash provided by (used in)          |   |                |   |   |   |     |   |         |   |   |   |   |   |
| discontinued      operations                 |   |                | -      |   |   | 123      |   |         | (2,552 | ) |   | (2,429 | ) |
| Net      cash provided by (used in)          |   |                |   |   |   |     |   |         |   |   |   |   |   |
| operating      activities                    |   |                | 19,668 |   |   | (9,026   | )      |         | (2,164 | ) |   | 8,478 |   |
|                                         |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Cash      flow from investing activities:    |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Exploration,      development and other      |   |                |   |   |   |     |   |         |   |   |   |   |   |
| capital      expenditures                    |   |                | -      |   |   | (38,379  | )      |         | -      |   |   | (38,379 | ) |
| Increase      in restricted investments      |   |                | (54    | )      |   | -        |   |         | -      |   |   | (54 | ) |
| Net      cash used in investing activities   |   |                | (54    | )      |   | (38,379  | )      |         | -      |   |   | (38,433 | ) |
|                                         |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Cash      flow from financing activities:    |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Net      borrowings under revolving credit   |   |                |   |   |   |     |   |         |   |   |   |   |   |
| facility                                     |   |                | -      |   |   | (28,750  | )      |         | -      |   |   | (28,750 | ) |
| Proceeds      from senior secured term loan  |   |                | -      |   |   | 100,000  |   |         | -      |   |   | 100,000 |   |
| Financing      costs                         |   |                | -      |   |   | (2,177   | )      |         | -      |   |   | (2,177 | ) |
| Dividends      paid on convertible preferred |   |                |   |   |   |     |   |         |   |   |   |   |   |
| stock                                        |   |                | (374   | )      |   | -        |   |         | -      |   |   | (374 | ) |
| Proceeds      from exercise of stock         |   |                |   |   |   |     |   |         |   |   |   |   |   |
| options,      warrants and other             |   |                | 1,109  |   |   | -        |   |         | -      |   |   | 1,109 |   |
| Investment      from parent                  |   |                | (3,800 | )      |   | -        |   |         | 3,800  |   |   | - |   |
| Net      cash provided by (used in)          |   |                |   |   |   |     |   |         |   |   |   |   |   |
| financing      activities                    |   |                | (3,065 | )      |   | 69,073   |   |         | 3,800  |   |   | 69,808 |   |
|                                         |   |                |   |   |   |     |   |         |   |   |   |   |   |
| Net      increase in cash and cash           |   |                |   |   |   |     |   |         |   |   |   |   |   |
| equivalents                                  |   |                | 16,549 |   |   | 21,668   |   |         | 1,636  |   |   | 39,853 |   |
| Cash      and cash equivalents at beginning  |   |                |   |   |   |     |   |         |   |   |   |   |   |
| of      year                                 |   |                | 16,593 |   |   | 1,030    |   |         | 207    |   |   | 17,830 |   |
| Cash      and cash equivalents at end of     |   |                |   |   |   |     |   |         |   |   |   |   |   |
| year                                         |   | $                   | 33,142 |   | $      | 22,698   |   | $            | 1,843  |   | $ | 57,683 |   |
|                                         |   |                |   |   |   |     |   |         |   |   |   |   |   |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

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Management'sDiscussion and Analysis of Financial Condition and Results 

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| Flatrock      Wells                                              | Total      Pay Intervals | Net      Feet of      Pay a | Status      b                                                                                              |
|------------------------------------------------------------------|--------------------------|-----------------------------|------------------------------------------------------------------------------------------------------------|
| No.      1 – “A” locationDiscovery      Well   | 8                        | 260                         | Gross      production currently approximates 47 MMcfe/d,~11 MMcfe/d c      net to us                       |
| No.      2 – “B” locationDelineation      Well | 8                        | 289                         | Tested      103 MMcf/d and 1,890 bbls/d gross, 21.4 MMcfe/d net, first production      expected mid-2008   |
| No.      3 – “D” locationDelineation      Well | 3                        | 126                         | Spud      November 5, 2007; sidetracked to 16,800’ with a proposed total depth of      18,800'       |
| No.      4 – “C” locationDevelopment      Well | n/a                      | n/a                         | Spud      April 9, 2008; targeting Rob-L and Operc sands with a proposed total depth      of 18,500’ |

| a.   | Confirmed      with wireline logs. |
|----------------|------------------------------------|

| b.   | Status      is reported as of May 7, 2008. |
|----------------|--------------------------------------------|

| c.   | Our      net rate is currently benefiting from Federal Royalty    Relief. |
|----------------|---------------------------------------------------------------------------|

|                                                                     | WorkingInterest      (%) | NetRevenueInterest (%) | Prospect      Acreage      a | Water      Depth (feet) | Proposed      TotalDepth b      (feet) | Recent      Depth      (feet) | Spud      Date        |
|--------------------------------------------------------------------------|--------------------------|-----------------------------|------------------------------|-------------------------|----------------------------------------|-------------------------------|-----------------------|
| Exploratory      Wells:                                                  |                     |                        |                         |                    |                                   |                          |                  |
| South      Marsh Island Block 212 “Flatrock No. 3”           | 25.0                     | 18.8                        | 3,805                        | 10                      | 18,800                                 | 16,800                        | November      5, 2007 |
| South      Timbalier Block 168   “No. 1 well” | 32.3c                    | 26.3                        | 24,512                       | 70                      | 33,000                                 | 30,964                        | March      18, 2008   |
| Louisiana      State Lease 340 “Mound Point East”            | 32.5                     | 23.2                        | 2,385                        | 5                       | 18,050                                 | 12,700                        | March      31, 2008   |
| Development      Well:                                                   |                     |                        |                         |                    |                                   |                          |                  |
| South      Marsh Island Block 212 “Flatrock No. 4”           | 25.0                     | 18.8                        | 3,805                        | 10                      | 18,500                                 | 11,800                        | April      9, 2008    |

| a.   | Gross      acres encompassing prospect to which we retain exploration      rights. |
|----------------|------------------------------------------------------------------------------------|

| b.   | Planned      target vertical depth, which is subject to  change. |
|----------------|------------------------------------------------------------------|

| c.   | Reflects      working interest after casingpoint. |
|----------------|---------------------------------------------------|

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|                                     | Three      Months    |    |
|------------------------------------------|----------------------|---------|
|                                     | Ended      March 31, |    |
|                                     | 2008                 |    |
|                                     |                 |    |   |
| Revenues:                                |                 |    |   |
| Oil      and natural gas                 | $                    | 214,030 |   |
| Service                                  |                 | 2,823   |   |
| Total      revenues                      |                 | 216,853 |   |
| Cost      and Expenses:                  |                 |    |   |
| Production      and delivery costs       |                 | 34,461  | a |
| Depreciation      and amortization       |                 | 91,823  |   |
| Exploration      expenses                |                 | 55      |   |
| General      and administrative expenses |                 | 1,224   | b |
| Total      costs and expenses            |                 | 127,563 |   |
| Operating      income                    | $                    | 89,290  |   |

| a.   | Includes      lease operating expenses of $24.3 million, $2.5 million for workover costs      and $7.7 million for transportation, production taxes and other related      costs. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Only      includes cost directly allocated to the acquired properties and excludes      all compensation costs. Amounts primarily reflect costs related to our      office in Houston, Texas. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       | Three      Months Ended       |
|--------------------------------------------|-------------------------------|
|                                       | March      31,                |
| OPERATING      DATA:                       | 2008a                         |   | 2007 |
| Sales      Volumes                         |                          |   |   |
| Gas      (thousand cubic feet, or Mcf)     | 17,875,400                    |   | 3,849,100 |
| Oil      (barrels)                         | 1,089,100                     |   | 344,400 |
| Plant      products (per Mcf equivalent) b | 2,486,300                     |   | 435,500 |
| Average      Realization                   |                          |   |   |
| Gas      (per Mcf)                         | $    9.06 |   | $    7.59 |
| Oil      (per barrel)                      | 97.40                         |   | 54.24 |

| a.   | Sales      volumes associated with the 2007 oil and gas property acquisition totaled      approximately 13.2 billion cubic feet of natural gas (Bcf), 776,300      barrels of oil and condensate and 2.1 Bcf of equivalent plant      products. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| b.   | We      received approximately $23.9 million and $3.4 million of revenues      associated with plant products (ethane, propane, butane, etc.) during the      first quarters of 2008 and 2007, respectively (see “Oil and Gas      Operations” below). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | First   |    |
|-------------------------------------------------------------|--------|---------|---------|
|                                                        |   | Quarter |    |
| Oil      and natural gas revenues – prior year period |   | $       | 51,375  |   |
| Increase      (decrease)                                    |   |    |    |   |
| Price      realizations:                                    |   |    |    |   |
| Natural      gas                                            |   |    | 8,791   |   |
| Oil      and condensate                                     |   |    | 12,310  |   |
| Sales      volumes:                                         |   |    |    |   |
| Natural      gas                                            |   |    | 6,526   |   |
| Oil      and condensate                                     |   |    | (1,711  | ) |
| Properties      acquired in 2007                            |   |    | 214,030 |   |
| Plant      products revenue                                 |   |    | 628     |   |
| Other                                                       |   |    | (3      | ) |
| Oil      and natural gas revenues - current year period     |   | $       | 291,946 |   |

|                                     |   |   | Per   |   |       |   | Per   |
|------------------------------------------|--------|--------|-------|--------|------------|--------|-------|
|                                     | 2008   |   | Mcfe  |   | 2007       |   | Mcfe  |
| Lease      operating expense             | $32.8  |   | $1.22 |   | $      8.7 |   | $1.37 |
| Workover      costs                      | 3.9    |   | 0.14  |   | 3.1        |   | 0.48  |
| Insurance                                | 7.9    |   | 0.30  |   | 3.2        |   | 0.51  |
| Transportation      and production taxes | 10.7   |   | 0.40  |   | 2.4        |   | 0.39  |
| Other                                    | 0.3    |   | 0.01  |   | 0.3        |   | 0.04  |
| Total                                    | $55.6  |   | $2.07 |   | $17.7      |   | $2.79 |

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|                                    |   |   | Per   |   |   |   | Per   |
|-----------------------------------------|--------|--------|-------|--------|--------|--------|-------|
|                                    | 2008   |   | Mcfe  |   | 2007   |   | Mcfe  |
| Depletion      and depreciation expense | $115.3 |   | $4.29 |   | $23.4  |   | $3.69 |
| Accretion      expense                  | 6.0    |   | 0.22  |   | 3.6    |   | 0.57  |
| Impairment      charges/losses          | -      |   | -     |   | -      |   | -     |
| Total                                   | $121.3 |   | $4.51 |   | $27.0  |   | $4.26 |

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|                                             | Three      Months Ended |   |
|--------------------------------------------------|-------------------------|--------|
|                                             | March      31,          |   |
|                                             | 2008                    |   | 2007 |   |
| Geological      and geophysical,                 |                    |   |   |   |   |   |
| including      3-D seismic purchases a           | $                       | 5.5    |   | $ | 6.9 |   |
| Non      productive exploratory costs, including |                    |   |   |   |   |   |
| related      lease costs                         |                    | (0.7   | )b |   | 1.1 | c |
| Other                                            |                    | 2.0    |   |   | 1.8 |   |
|                                             | $                       | 6.8    |   | $ | 9.8 |   |

| a.   | Includes      compensation costs associated with outstanding stock-based awards totaling      $0.9 million in the first quarter of 2008 and $3.2 million in the first      quarter of 2007 (see “Stock-Based Compensation” below and Note      8).  Also includes $2.0 million in the first quarter of 2008 and      $0.5 million in the first quarter of 2007 of seismic      purchases. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Primarily      reflects the reimbursement from third parties of nonproductive exploratory      well drilling and related costs previously charged to    expense. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Primarily      reflects the nonproductive exploratory well drilling and related costs      associated with the “Marlin” well at Grand Isle Block 18 evaluated to be      nonproductive in January 2007. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                            | Three      Months Ended |   |
|-------------------------------------------------|-------------------------|--------|
|                                            | March      31,          |   |
|                                            | 2008                    |   | 2007 |   |
| Sulphur      retiree costs                      | $                       | 335    |   | $ | 435 |   |
| Caretaking      costs                           |                    | 216    |   |   | 184 |   |
| Accretion      expense – sulphur          |                    |   |   |   |   |   |
| reclamation      obligations                    |                    | 218    |   |   | 434 |   |
| Insurance                                       |                    | 5      |   |   | 388 |   |
| General      and administrative and legal       |                    | 63     |   |   | 59 |   |
| Other                                           |                    | 19     |   |   | (3,831 | )a |
| Loss      (income) from discontinued operations | $                       | 856    |   | $ | (2,331 | ) |

|   | a.  Includes      the $4.2 million of finalized insurance recoveries associated with the      Port Sulphur property damage claims resulting from the 2005      hurricanes. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       | Three      Months Ended |   |
|----------------------------|-------------------------|--------|
|                       | March      31,          |   |
|                       | 2008                    |   |   | 2007 |   |
| Continuing      operations |                    |   |   |   |   |   |   |
| Operating                  | $                       | 173.7  |   |   | $ | 10.9 |   |
| Investing                  |                    | (54.9  | ) |   |   | (38.4 | ) |
| Financing                  |                    | (116.4 | ) |   |   | 69.8 |   |

| Discontinued      operations |   |                                        |   |   |   |                                        |   |
|------------------------------|--------|---------------------------------------------|--------|--------|--------|---------------------------------------------|--------|
| Operating                    |   | (0.9                                        | )      |   |   | (2.4                                        | )      |
| Investing                    |   |        - |   |   |   |        - |   |
| Financing                    |   |       -       |   |   |   |       -       |   |
|                         |   |                                        |   |   |   |                                        |   |
| Total cash      flow         |   |                                        |   |   |   |                                        |   |
| Operating                    |   | 172.8                                       |   |   |   | 8.5                                         |   |
| Investing                    |   | (54.9                                       | )      |   |   | (38.4                                       | )      |
| Financing                    |   | (116.4                                      | )      |   |   | 69.8                                        |   |

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|                                     |   | Three      Months Ended |   |
|------------------------------------------|--------|-------------------------|--------|
|                                     |   | March      31,          |   |
|                                     |   | 2008                    |   | 2007 |   |
| General      and administrative expenses |   | $                       | 981    |   | $ | 3,056 |   |
| Exploration      expenses                |   |                    | 889    |   |   | 3,214 |   |
| Main      Pass Energy Hub start-up costs |   |                    | 71     |   |   | 237 |   |
| Total      stock-based compensation cost |   | $                       | 1,941  |   | $ | 6,507 |   |

| ·   | Level      1:  valuations consist of unadjusted quoted prices in active markets      for identical assets and liabilities and has the highest      priority; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      2:  valuations rely on quoted prices in markets that are not active      or observable inputs over the full term of the asset or      liability; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Level      3:  valuations are based on prices or third party or internal      valuation models that require inputs that are significant to the fair      value measurement and are less observable and thus have the lowest      priority. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 3.  Quantitative and QualitativeDisclosures about Market Risk.

Item4.   Controlsand Procedures

PART II––OTHER INFORMATION

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privately 
negotiatedtransactions with holders to induce conversion of $7.3 million of our 6%Convertible Senior Notes due 2008 into 0.5 million shares of our commonstock. This transaction is in reliance on the exemption from registrationprovided under Section 3(a)(9) of the Securities Act of 1933.

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SIGNATURE

|                              | McMoRan      Exploration Co.                        |
|-----------------------------------|-----------------------------------------------------|
|                              |                                                |
|                              | By:  /s/      Nancy D. Parmelee           |
|                              | Nancy      D. Parmelee                              |
|                              | Senior      Vice President, Chief Financial Officer |
|                              | and      Secretary                                  |
|                              | (authorized      signatory and Principal            |
|                              | Financial      Officer)                             |
|                              |                                                |
|                              |                                                |
|                              |                                                |
| Date:  May      8, 2008 |                                                |

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TABLE OFCONTENTS

Exhibit Index

|    |                                                                                                                                                                                                                                                                                                                                                     | Filed          |                           |          |            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------------------------------|---------------|-----------------|
| Exhibit |                                                                                                                                                                                                                                                                                                                                                     | with      this | Incorporated      by Reference |
| Number  | Exhibit      Title                                                                                                                                                                                                                                                                                                                                       | Form      10-Q | Form                           | File      No. | Date      Filed |
| 2.1     | Agreement      and Plan of Merger dated as of August 1, 1998                                                                                                                                                                                                                                                                                             |           | S-4                            | 333-61171     | 10/06/1998      |
| 3.1     | Amended      and Restated Certificate of Incorporation of McMoRan                                                                                                                                                                                                                                                                                        |           | 10-K                           | 001-07791     | 03/25/1999      |
| 3.2     | Certificate      of Amendment to the Amended and Restated Certificate of Incorporation of      McMoRan                                                                                                                                                                                                                                                   |           | 10-Q                           | 001-07791     | 05/13/2003      |
| 3.3     | Amended      and Restated By-Laws of McMoRan as amended effective January 30,      2006                                                                                                                                                                                                                                                                  |           | 8-K                            | 001-07791     | 02/03/2006      |
| 4.1     | Form      of Certificate of McMoRan Common Stock                                                                                                                                                                                                                                                                                                         |           | S-4                            | 333-61171     | 10/06/1998      |
| 4.2     | Rights      Agreement dated as of November 13, 1998                                                                                                                                                                                                                                                                                                      |           | 10-K                           | 001-07791     | 03/25/1999      |
| 4.3     | Amendment      to Rights Agreement dated December 28, 1998                                                                                                                                                                                                                                                                                               |           | 10-K                           | 001-07791     | 03/25/1999      |
| 4.4     | Standstill      Agreement dated August 5, 1999 between McMoRan and Alpine Capital, L.P.,      Robert W. Bruce III, Algenpar, Inc, J. Taylor Crandall, Susan C. Bruce,      Keystone, Inc., Robert M. Bass, the Anne T. and Robert M. Bass Foundation,      Anne T. Bass and The Robert Bruce Management Company, Inc. Defined Benefit      Pension Trust |           | 10-Q                           | 001-07791     | 11/12/1999      |
| 4.5     | Warrant      to Purchase Shares of Common Stock of McMoRan dated September 30,      2003                                                                                                                                                                                                                                                                 |           | 10-K                           | 001-07791     | 03/15/2004      |
| 4.6     | Registration      Rights Agreement dated December 16, 2002 between McMoRan and K1 USA Energy      Production Corporation                                                                                                                                                                                                                                 |           | 10-K                           | 001-07791     | 03/27/2003      |
| 4.7     | Indenture      dated as of July 2, 2003 by and between McMoRan and The Bank of New York,      as trustee                                                                                                                                                                                                                                                 |           | 10-Q                           | 001-07791     | 08/14/2003      |
| 4.8     | Collateral      Pledge and Security Agreement dated as of July 2, 2003 by and among      McMoRan, as pledgor, The Bank of New York, as trustee, and the Bank of New      York, as collateral agent                                                                                                                                                       |           | 10-Q                           | 001-07791     | 08/14/2003      |
| 4.9     | Purchase      Agreement dated September 30, 2004, by and among McMoRan Exploration Co.,      Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith      Incorporated, and J.P. Morgan Securities Inc                                                                                                                                        |           | 8-K                            | 001-07791     | 10/07/2004      |
| 4.10    | Indenture      dated October 6, 2004 by and among McMoRan and the Bank of New York, as      trustee                                                                                                                                                                                                                                                      |           | 8-K                            | 001-07791     | 10/07/2004      |
| 4.11    | Collateral      Pledge and Security Agreement dated October 6, 2004 by and among McMoRan,      as pledgor, The Bank of New York, as trustee and the Bank of New York, as      collateral agent                                                                                                                                                           |           | 8-K                            | 001-07791     | 10/07/2004      |
| 4.12    | Registration      Rights Agreement dated October 6, 2004 by and among McMoRan, as issuer and      Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan      Securities Inc. and Jefferies & Company, Inc. as Initial      Purchasers                                                                                             |           | 8-K                            | 001-07791     | 10/07/2004      |
| 10.1    | Main      Pass 299 Sulphur and Salt Lease, effective May 1, 1988                                                                                                                                                                                                                                                                                         |           | 10-K                           | 001-07791     | 04/16/2002      |

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TABLE OFCONTENTS

|    |               | Filed          |                           |          |            |
|---------|--------------------|----------------|--------------------------------|---------------|-----------------|
| Exhibit |               | with      this | Incorporated      by Reference |
| Number  | Exhibit      Title | Form      10-Q | Form                           | File      No. | Date      Filed |

| 10.2   | IMC      Global/FSC Agreement dated as of March 29, 2002 among IMC Global Inc., IMC      Global Phosphate Company, Phosphate Resource Partners Limited Partnership,      IMC Global Phosphates MP Inc., MOXY and McMoRan                                                                                                                                                            |   | 10-Q | 001-07791 | 08/14/2002 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------|-----------|------------|
| 10.3   | Amended      and Restated Services Agreement dated as of January 1, 2002 between      McMoRan and FM Services Company                                                                                                                                                                                                                                                                    |   | 10-Q | 001-07791 | 08/14/2003 |
| 10.4   | Letter      Agreement dated August 22, 2000 between Devon Energy Corporation and      Freeport Sulphur                                                                                                                                                                                                                                                                              |   | 10-Q | 001-07791 | 10/25/2000 |
| 10.5   | Asset      Purchase Agreement dated effective December 1, 1999 between SOI Finance      Inc., Shell Offshore Inc. and MOXY                                                                                                                                                                                                                                                               |   | 10-K | 001-07791 | 02/08/2000 |
| 10.6   | Employee      Benefits Agreement by and between Freeport-McMoRan Inc. and Freeport      Sulphur                                                                                                                                                                                                                                                                                     |   | 10-K | 001-07791 | 04/16/2002 |
| 10.7   | Purchase      and Sales agreement dated January 25, 2002 but effective January 1, 2002      by and between MOXY and Halliburton Energy Services,    Inc                                                                                                                                                                                                                             |   | 8-K  | 001-07791 | 03/11/2002 |
| 10.8   | Purchase      and Sale Agreement dated as of March 29, 2002 by and among Freeport      Sulphur, McMoRan, MOXY and Gulf Sulphur Services Ltd.,      LLP                                                                                                                                                                                                                              |   | 10-Q | 001-07791 | 05/10/2002 |
| 10.9   | Purchase      and Sale Agreement dated May 9, 2002 by and between MOXY and El Paso      Production Company                                                                                                                                                                                                                                                                          |   | 10-Q | 001-07791 | 08/14/2002 |
| 10.10  | Amendment      to Purchase and Sale Agreement dated May 22, 2002 by and between MOXY and      El Paso Production Company                                                                                                                                                                                                                                                            |   | 10-Q | 001-07791 | 08/14/2002 |
| 10.11  | Master      Agreement dated October 22, 2002 by and among Freeport-McMoRan Sulphur      LLC, K-Mc Venture LLC, K1 USA Energy Production Corporation and      McMoRan                                                                                                                                                                                                                |   | 10-K | 001-07791 | 03/27/2003 |
| 10.12  | Purchase      and Sale Agreement dated June 20, 2007 by and between Newfield Exploration      Company as Seller and McMoRan Oil & Gas LLC as Buyer effective July 1,      2007                                                                                                                                                                                                  |   | 8-K  | 001-07791 | 06/22/2007 |
| 10.13  | Amended      and Restated Credit Agreement dated as of August 6, 2007, among McMoRan      Exploration Co., as parent, McMoRan Oil & Gas LLC, as borrower,      JPMorgan Chase Bank, N.A. Merrill Lynch Capital, a division of Merrill      Lynch Business Financial Services, Inc., as syndication agent, BNP      Paribas, as documentation agent, and the lenders party    thereto |   | 10-Q | 001-07791 | 11/01/2007 |
| 10.14  | Credit      Agreement dated as of August 12 2007, among McMoRan Exploration Col, as      borrower, JPMorgan Chase Bank, N.A., as administrative agent, and the      lenders party thereto                                                                                                                                                                                                |   | 10-Q | 001-07791 | 11/01/2007 |
| 10.15* | McMoRan      Adjusted Stock Award Plan, as amended and restated                                                                                                                                                                                                                                                                                                                          |   | 10-Q | 001-07791 | 05/10/2007 |

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TABLE OFCONTENTS

|    |               | Filed          |                           |          |            |
|---------|--------------------|----------------|--------------------------------|---------------|-----------------|
| Exhibit |               | with      this | Incorporated      by Reference |
| Number  | Exhibit      Title | Form      10-Q | Form                           | File      No. | Date      Filed |

| 10.16* | McMoRan      1998 Stock Option Plan, as amended and restated |   | 10-Q | 001-07791 | 05/10/2007 |
|--------|--------------------------------------------------------------|--------|------|-----------|------------|

| 10.17* | McMoRan      1998 Stock Option Plan for non-Employee Directors                                                                                                                                                                                             |   | 10-Q   | 001-07791 | 05/10/2007 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|------------|
| 10.18* | McMoRan      Form of Notice of Grant of Nonqualified Stock Options under the 1998 Stock      Option Plan                                                                                                                                                   |   | 10-Q   | 001-07791 | 08/04/2005 |
| 10.19* | McMoRan      2000 Stock Incentive Plan, as amended and restated                                                                                                                                                                                            |   | 10-Q   | 001-07791 | 05/10/2007 |
| 10.20* | McMoRan      Form of Notice of Grant of Nonqualified Stock Options under the 2000 Stock      Incentive Plan                                                                                                                                                |   | 10-Q   | 001-07791 | 08/04/2005 |
| 10.21* | McMoRan      2001 Stock Incentive Plan, as amended and restated                                                                                                                                                                                            |   | 10-Q   | 001-07791 | 05/10/2007 |
| 10.22* | McMoRan      2003 Stock Incentive Plan, as amended and restated                                                                                                                                                                                            |   | 10-Q   | 001-07791 | 05/10/2007 |
| 10.23* | McMoRan’s      Performance Incentive Awards Program as amended effective February 1,      1999                                                                                                                                                       |   | 10-K   | 001-07791 | 03/25/1999 |
| 10.24* | McMoRan      Form of Notice of Grant of Nonqualified Stock Options under the 2001 Stock      Incentive Plan                                                                                                                                                |   | 10-Q   | 001-07791 | 08/04/2005 |
| 10.25* | McMoRan      Form of Restricted Stock Unit Agreement Under the 2001 Stock Incentive      Plan                                                                                                                                                              |   | 10-Q   | 001-07791 | 08/09/2007 |
| 10.26* | McMoRan      Exploration Co. Executive Services Program                                                                                                                                                                                                    |   | 8-K    | 001-07791 | 05/05/2006 |
| 10.27* | McMoRan      Form of Notice of Grants of Nonqualified Stock Options under the 2003      Stock Incentive Plan                                                                                                                                               |   | 10-Q   | 001-07791 | 08/04/2005 |
| 10.28* | McMoRan      Form of Restricted Stock Unit Agreement Under the 2003 Stock Incentive      Plan                                                                                                                                                              |   | 10-Q   | 001-07791 | 08/09/2007 |
| 10.29* | McMoRan      2004 Director Compensation Plan, as amended and restated                                                                                                                                                                                      |   | 10-Q   | 001-07791 | 05/10/2007 |
| 10.30* | Form      of Amendment No. 1 to Notice of Grant of Nonqualified Stock Options under      the 2004 Director Compensation Plan                                                                                                                               |   | 8-K    | 001-07791 | 05/05/2006 |
| 10.31* | Agreement      for Consulting Services between Freeport-McMoRan Inc. and B. M. Rankin,      Jr. effective as of January 1, 1991)(assigned to FM Services Company as of      January 1, 1996); as amended on December 15, 1997 and on December 7,      1998 |   | 10-K   | 001-07791 | 03/25/1999 |
| 10.32* | Supplemental      Letter Agreement between FM Services Company and B.M. Rankin, Jr.      effective as of January 1, 2008                                                                                                                                   |   | 10-K   | 001-07791 | 03/17/2008 |
| 10.33* | McMoRan      Director Compensation                                                                                                                                                                                                                         |   | 10-K   | 001-07791 | 03/15/2005 |
| 10.34* | McMoRan      Exploration Co. 2005 Stock Incentive Plan                                                                                                                                                                                                     |   | 10-Q   | 001-07791 | 05/10/2007 |
| 10.35* | Form      of Notice of Grant of Nonqualified Stock Options under the 2005 Stock      Incentive Plan                                                                                                                                                        |   | 8-K    | 001-07791 | 05/06/2005 |
| 10.36* | Form      of Restricted Stock Unit Agreement under the 2005 Stock Incentive      Plan                                                                                                                                                                      |   | 10-Q   | 001-07791 | 08/09/2007 |
| 10.37* | McMoRan      Exploration Co. Supplemental Executive Capital Accumulation      Plan                                                                                                                                                                         | X      |   |      |       |
| 10.38* | McMoRan      Exploration Co. Supplemental Executive Capital Accumulation Plan Amendment      One                                                                                                                                                           | X      |   |      |       |
| 12.1   | Computation      of Ratio of Earnings to Fixed Charges                                                                                                                                                                                                     |   | 10-K   | 001-07791 | 03/17/2008 |
| 14.1   | Ethics      and Business Conduct Policy                                                                                                                                                                                                                    |   | 10-K   | 001-07791 | 03/15/2004 |

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TABLE OFCONTENTS

|    |               | Filed          |                           |          |            |
|---------|--------------------|----------------|--------------------------------|---------------|-----------------|
| Exhibit |               | with      this | Incorporated      by Reference |
| Number  | Exhibit      Title | Form      10-Q | Form                           | File      No. | Date      Filed |

| 15.1 | Letter      dated April 28, 2008 from Ernst & Young LLP regarding unaudited      interim financial statements | X |   |   |   |
|------|-------------------------------------------------------------------------------------------------------------------|---|--------|--------|--------|
| 31.1 | Certification      of Principal Executive Officer pursuant to Rule      13a–14(a)/15d-14(a)                 | X |   |   |   |
| 31.2 | Certification      of Principal Financial Officer pursuant to Rule      13a–14(a)/15d-14(a)                 | X |   |   |   |
| 32.1 | Certification      of Principal Executive Officer pursuant to 18 U.S.C. Section      1350                         | X |   |   |   |
| 32.2 | Certification      of Principal Financial Officer pursuant to 18 U.S.C. Section      1350                         | X |   |   |   |

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