Stone Energy Corporation Announces Drilling Results, Increased Production
Guidance and Increased 2013 Capex Budget
LAFAYETTE, La., Sept. 9, 2013
LAFAYETTE,La., Sept. 9, 2013 /PRNewswire/ --Stone Energy Corporation (NYSE:
SGY) today provided an update on the deep water Taggart prospect, including
the exploratory well drilled at Mississippi Canyon 816. Drilling operations
have been completed and the rig is being released. The well has been logged,
and pressure readings, cores andfluid samples have been taken in the Pliocene
and Upper Miocene section sands. The data indicates a discovery with
approximately 90 feet of net oil and gas condensate pay in two sands. The
partners plan to further analyze the data from this well and develop a plan
which is expected to include a sub-sea tie back to an existing facility.
Stone holds approximately 23% working interest in the project, and LLOG
Exploration Offshore, L.L.C. is the operator.
A discovery was also made on the Taildancer prospect at Ship Shoal 113, with
the well encountering 130 feet of net oil and gas pay. Production from this
discovery is projected to be on line in the fourth quarter of 2013. Stone is
the operator with a 100% working interest.
The rig for the deep water San Marcos prospect at Mississippi Canyon 983 is on
location and has begun drilling. Stone holds a 25% working interest in the
prospect which is operated by Apache Deepwater LLC.
Stone also provided updated production guidance for the third quarter of 2013,
increasing from 42-45 Mboe per day (252-270 MMcfe per day) to 46-49 Mboe per
day (276-294 MMcfe per day). The full year guidance has also been increased
from 41-44 Mboe per day (246-264 MMcfe per day) to 43.5-45.0 Mboe per day
(261-270 MMcfe per day). The increase was due to higher projected Appalachian
volumes, incremental volumes from the La Cantera field and a more active
workover/recompletion GOM shelf program. The guidance still incorporates some
projected hurricane shut-in time as well as reduced fourth quarter volumes in
Appalachia due to cold weather pipeline restrictions. The guidance is subject
to all the cautionary statements and limitations described below under the
caption "Forward Looking Statements."
Additionally, Stone's Board of Directors has authorized an increase to the
2013 capital expenditure budget from $650 million to $710 million, which
excludes major acquisitions and capitalized SG&A and interest. Most of the
capital expenditure budget increase is expected to be in the GOM deep water,
with a minor increase in the Appalachia area. The final capital expenditure
amount and the allocation of capital across the various areas is subject to
change based on several factors including permitting times, rig availability,
non-operator decisions, farm-in opportunities and commodity pricing.
Forward Looking Statements
Certain statements in this press release are forward-looking and are based
upon Stone's current belief as to the outcome and timing of future events. All
statements, other than statements of historical facts, that address activities
that Stone plans, expects, believes, projects, estimates or anticipates will,
should or may occur in the future, including future production of oil and gas,
future capital expenditures and drilling of wells, future financial or
operating results and the amount, and timing of any potential divestitures are
forward-looking statements. Important factors that could cause actual results
to differ materially from those in the forward-looking statements herein
include the timing and extent of changes in commodity prices for oil and gas,
operating risks, liquidity risks, political and regulatory developments and
legislation, including developments and legislation relating to our operations
in the Gulf of Mexico and Appalachia, market conditions relating to
acquisitions and divestitures and other risk factors and known trends and
uncertainties as described in Stone's Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q as filed with the SEC. Should one or more of these risks
or uncertainties occur, or should underlying assumptions prove incorrect,
Stone's actual results and plans could differ materially from those expressed
in the forward-looking statements.
Estimates for Stone's future production volumes are based on assumptions of
capital expenditure levels and the assumption that market demand and prices
for oil and gas will continue at levels that allow for economic production of
these products. The production, transportation and marketing of oil and gas
are subject to disruption due to transportation and processing availability,
mechanical failure, human error, hurricanes and numerous other factors.
Stone's estimates are based on certain other assumptions, such as well
performance, which may vary significantly from those assumed. Delays
experienced in well permitting could affect the timing of drilling and
production. Therefore, we can give no assurance that our future production
volumes will be as estimated.
Stone Energy is an independent oil and natural gas exploration and production
company headquartered in Lafayette, Louisiana with additional offices in New
Orleans, Houston and Morgantown, West Virginia. Our business strategy is to
leverage cash flow generated from existing assets to maintain relatively
stable GOM shelf production, profitably grow gas reserves and production in
price-advantaged basins such as Appalachia and the Gulf Coast Basin, and
profitably grow oil reserves and production in material impact areas such as
the deep water GOM and onshore oil. For additional information, contact
Kenneth H. Beer, Chief Financial Officer, at 337-521-2210 phone, 337-521-2072
fax or via e-mail at CFO@StoneEnergy.com.
SOURCE Stone Energy Corporation
Press spacebar to pause and continue. Press esc to stop.