LAFAYETTE, La., Jan. 10, 2018 /PRNewswire/ -- Stone Energy
Corporation (NYSE: SGY) today announced drilling success at the
deep water Mt. Providence
development well at Mississippi Canyon Block 28. Stone
generated the prospect and owns a 100% working interest in the
well.
The Mt. Providence well (the MC
28 #4 well) encountered approximately 153 net feet of high quality,
primarily oil pay in one Miocene interval with no visible water
level, which exceeded pre-drill expectations. Completion
operations on the Mt. Providence
well will commence in the second quarter of 2018 with first
production expected early in the third quarter of 2018. The
well is expected to have an initial production rate of
approximately 3,000 to 5,000 barrels of oil equivalent per day and
will be tied back to the 100% Stone owned Pompano platform through
existing subsea infrastructure.
Interim Chief Executive Officer and President James M. Trimble stated, "We are excited about
the Mt. Providence drilling
results. This successful well will quickly generate
additional production and cash flow with minimal incremental
operating cost since we can capitalize on existing subsea
infrastructure and available capacity at our Pompano
platform. I appreciate the efforts of the entire Stone team
that contributed to this success."
Separately, the Derbio well (the MC 72 #3 well) is now expected
to spud in late January 2018 with
results expected early in the second quarter of 2018. Derbio
is a Stone-generated prospect and follows the Rampart Deep success
announced in September 2017. If successful, the Rampart
Deep/Derbio project could be a multi-well tie back to the Stone
100% owned Pompano platform, with first production expected by late
2019. Working interest partners in the Derbio prospect are
Stone with 40%, Deep Gulf Energy III, LLC with 30% (Operator) and
entities managed by Ridgewood Energy Corporation (including
Riverstone Holdings, LLC and its portfolio company ILX Holdings
III, LLC) with 30%.
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 or results 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 and completion of wells, and
future financial or operating results are forward-looking
statements. All forward-looking numbers are
approximate. 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,
extent, and volatility 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; risks related to our previously announced combination with
Talos Energy LLC; 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 an additional office in New Orleans.
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