HFS+ compressed files will remain at their original location and can be used as before. With MoreSpace applied HFS+ compression there is no need to create separate compressed archive files.
MoreSpace app using Apple HFS+ compression technology was introduced in OS X 10.6 Snow Leopard. This compression method also used by Apple to reduce size of OS X system folders.
OS X will automatically decompress HFS+ compressed files on access, no need to manually extract them. When the compressed file(s) being modified or copied, OS X will store them uncompressed.
Finder will show the original (uncompressed) file size of HFS+ compressed files, the occupied space difference shown in MoreSpace app and free space available value in Finder.