LAFAYETTE, La., July 25, 2016 /PRNewswire/ -- Stone Energy
Corporation (NYSE: SGY) today announced estimated production for
the quarter ended June 30, 2016 of approximately 29 MBoe (174
MMcfe) per day, consisting of approximately 59% oil, 9% natural gas
liquids ("NGLs") and 32% natural gas. This rate is slightly
above the upper end of guidance for the quarter. These
production volumes included approximately 23 MBoe (138 MMcfe) per
day from the Gulf of Mexico and 6
MBoe (36 MMcfe) per day from Appalachia. Appalachian volumes
included 21 MMcfe per day from the Heather and Buddy fields, 11
MMcfe per day of intermittent production from the Mary field and 4
MMcfe per day attributed to a one-time adjustment of previous
working interest.
As reported on June 29, 2016,
Stone entered into an interim gas gathering and processing
agreement with Williams at the Mary field in Appalachia.
Production from the Mary field has been substantially shut in since
September 2015, except for
intermittent production. The initial term of the interim
agreement runs through August 31,
2016, and it continues on a month to month basis thereafter
unless terminated by either party. Production from the Mary
field resumed in late June and has averaged over 75 MMcfe per day
in July. We expect production rates from the Mary field to
reach over 125 MMcfe per day in August. Currently, 57 wells
representing over 60 MMcfe per day in potential volume remain shut
in due to downstream liquids-handling capacity constraints.
We expect most of this production to come online in late July and
August.
On June 28, 2016, the Enterprise
Products Partners LP gas processing plant in Pascagoula, Mississippi experienced an
explosion that shut down the facility, which is not expected to be
back in operation for months. Although Stone has no direct
interest in the plant, it processed approximately 20-25 MMcf per
day (gross) of gas produced from the Pompano platform. This gas has
been either shut in or re-injected since the incident, and the gas
curtailment has restricted oil flow from the Pompano platform to
approximately 70% of previous production rates. Prior to this
curtailment, second quarter 2016 net production from the Pompano
platform averaged approximately 11 MBbls of oil per day and
approximately 21 MMcfe of gas and NGLs per day. On
July 21, 2016, we negotiated an
agreement to flow gas to an alternate market and are currently
producing oil and gas from the Pompano platform at volumes similar
to second quarter production rates. Our arrangement does not
guarantee available capacity, so gas re-injection remains a
fallback option if needed. As previously reported, production
from our Amethyst well was shut in during late April to allow for a
technical evaluation. We have delayed intervention activities
at Amethyst until we can secure a reliable gas sales market for the
Pompano facility.
Stone expects to release its second quarter 2016 results on
Tuesday, August 2, 2016, after the
market close. Updated guidance for the remainder of 2016 will
be provided in the second quarter earnings press release. A
conference call will not be held for this quarter.
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
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 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, our outstanding notes and any restructuring thereof, our
ability to continue as a going concern and any potential bankruptcy
proceeding, 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.
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.
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SOURCE Stone Energy Corporation