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|Stone Energy Corporation Secures Deep Water Drilling Rig and Provides Operational Update|
Chairman, President and CEO
At the La Cantera liquids-rich deep gas field, the third well was successfully drilled to 18,000 ft and is currently in completion operations with first production expected in June 2013. Combined with the first two wells, gross production from this field is projected at over 100 MMcfe per day (over 25 MMcfe per day net) when the third well commences production. Stone holds a 34.6% non-operated working interest in the field.
Drilling operations at the deep water Malachite prospect located on
In Appalachia, production has been impacted by three third party pipeline failures since late
Despite the curtailments in Appalachia, production guidance for the first quarter of 2013 remains within the 38-40 thousand barrels of oil equivalent (MBoe) per day (230-240 MMcfe per day) guidance range. Because a majority of the curtailment was natural gas, Stone expects liquids to represent approximately 50% of overall volumes in the first quarter of 2013.
Forward Looking Statement
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 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
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.