LAFAYETTE, La., July 7, 2015 /PRNewswire/ -- Stone Energy
Corporation (NYSE: SGY) today provided a drilling and production
update. In the Gulf of Mexico
deepwater, operations at the Cardona #6 development well, located in
Mississippi Canyon block 29, have been proceeding ahead of schedule
and below budget, and drilling has been completed through the
targeted zones. The well encountered approximately 288 feet
of net pay in two intervals, similar to the Cardona #5 net pay of 275 feet. Analysis
of logging and pressure data confirmed the existence of oil in the
pay zones. The well has been successfully cased and cemented across
all productive zones, the subsea tree has been installed and
completion operations have begun. The well will be tied into
our existing Cardona subsea
infrastructure, which flows into Stone's Pompano platform. It
is expected that gross production from Cardona #6 will reach approximately 5,000 Boe
per day (65% working interest) from the lower completion by late
September.The upper completion is expected to have a similar
production rate and will be accessed in the future by hydraulically
shifting sleeves between the upper and lower completions.
Upon completion of the Cardona
#6 well, the ENSCO 8503 deepwater drilling rig will be released for
approximately 60 days to receive scheduled maintenance and to be
outfitted with mooring capabilities. The rig will then be
mobilized to Mississippi Canyon block 26 to finish the completion
of the Amethyst discovery (100% working interest). Amethyst will
also be tied back to the Pompano platform, where first production
is expected early in the first quarter of 2016. Following the
Amethyst completion, the rig is currently projected to drill the
Cardona #7 development
well and the Lamprey deep
water exploration prospect.
Production for the second quarter is expected to be at or above
the high end of the previous guidance range of 246-258 Mmcfe per
day.The increase is a result of reduced scheduled third-party
pipeline downtime in the GOM deepwater and flatter than expected
production declines in Appalachia. Additional upward
revisions in Appalachian production may be realized in the second
quarter of 2015 earnings results pending participation elections by
Stone's operating partners.
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. Stone is engaged in the
acquisition, exploration, development and production of properties
in the Gulf of Mexico and
Appalachian basins. 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.
Guidance Disclosure
Guidance is subject to all the cautionary statements and
limitations described below and under the caption "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. Lease operating expenses, which
include major maintenance costs, vary in response to changes in
prices of services and materials used in the operation of our
properties and the amount of maintenance activity
required.
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 weather, 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, 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.
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SOURCE Stone Energy Corporation