Oil and gas producer McMoRan Exploration Co. on Thursday posted a third-quarter loss, reversing a year-ago profit, as sharply higher exploration expenses offset sales growth.

After paying preferred dividends, the company posted a loss of $18.1 million, or 64 cents per share, compared with earnings of $6.7 million, or 21 cents per share, a year earlier. The loss from continuing operations in the latest quarter was 55 cents per share. Revenue increased 37 percent to $60.4 million from $44.3 million a year ago.

At the same time, expenses _ in particular, exploration costs _ surged to $73.3 million from $33 million in the 2005 third quarter.

Analysts expected earnings of 22 cents per share, according to a Thomson Financial poll.

Third-quarter sales volumes totaled 4.4 billion cubic feet of natural gas and 449,500 barrels of oil and condensate, up from 2.01 billion cubic feet of gas last year and 366,900 barrels of oil and condensate.

The company's average realized oil price jumped to $65.11 a barrel from $57.17, but gas prices plummeted to $6.51 from $10.31 in the year-earlier quarter.

Shares of McMoRan Exploration fell $1.43, or 7.9 percent, to $16.70 in midday trading on the New York Stock Exchange. The stock has traded in a 52-week range of $14.37 to $21.12.