LAFAYETTE, La., June 9, 2017 /PRNewswire/ -- Stone Energy
Corporation (NYSE: SGY) today announced that drilling operations on
its Rampart Deep Prospect in Mississippi Canyon Block 116 were
initiated on June 3, 2017. The
Stone generated prospect will be drilled and operated by Deep
Gulf Energy III, LLC, and is expected to be tied back to Stone's
100% owned Pompano platform, if successful. The prospect,
which targets the Miocene interval, is located nine miles from the
Pompano platform and is estimated to take two months to
drill. After a sell down of a portion of its position, Stone
holds a 40% working interest in the well and received leasehold and
other reimbursable costs. Additional working interest owners
are Deep Gulf Energy III, LLC with 30% and entities managed by
Ridgewood Energy Corporation (including Riverstone Holdings, LLC
and its portfolio company ILX Holdings III, LLC) with 30%.
Recently, Stone implemented additional workforce reductions in
order to better align its employee base with current business
needs. We expect this action to result in an approximate 25%
decrease in our salaries, general and administrative cash costs for
the second half of 2017, translating into an expected quarterly
cash SG&A outlay, before capitalization, of approximately
$11 million to $12 million per
quarter, excluding non-recurring and non-cash items. We
project an overall SG&A reduction of approximately 50% from
2016.
Interim Chief Executive Officer and President James M. Trimble stated, "The Rampart Deep well
is an important step in Stone's forward plans. A successful
test of the Rampart Deep Prospect could lead to a multi-well
development program, with a tie back to our Pompano platform
further leveraging this facility. Partnering with Deep Gulf
Energy and Ridgewood on this well reflects our renewed focus on
efficient use of capital, and the reductions in SG&A reflect
our continued commitment to manage our costs to better position
Stone to be competitive in the current commodity price
environment."
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 and future
financial or operating results are forward-looking
statements. Important factors that could cause actual results
to differ materially from those in the forward-looking statements
herein include, but are not limited to, the timing and extent of
changes in commodity prices for oil and gas; operating risks;
liquidity risks, including risks relating to our bank credit
facility and the Company's ability to access the capital markets;
political and regulatory developments and legislation, including
developments and legislation relating to our operations in the
Gulf of Mexico basin; and other
risk factors and known trends and uncertainties as described in
Stone's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K as filed with the Securities and
Exchange Commission. For a more detailed discussion of risk
factors, please see Part I, Item 1A, "Risk Factors" of the
Company's most recent Annual Report on Form 10-K and Part II, Item
1A of the Company's Quarterly Report on Form 10-Q for the period
ended March 31, 2017. 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. Stone assumes no obligation and
expressly disclaims any duty to update the information contained
herein, except as required by law.
Stone Energy is an independent oil and natural gas
exploration and production company headquartered in Lafayette,
Louisiana with additional offices in New Orleans and
Houston. Stone is engaged in
the acquisition, exploration, development and production of
properties in the Gulf of Mexico
basin. For additional information, contact Kenneth H.
Beer, Chief Financial Officer, at 337-521-2210 phone, 337-521-9880
fax or via e-mail at CFO@StoneEnergy.com
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SOURCE Stone Energy Corporation