LAFAYETTE, La., Sept. 5, 2017 /PRNewswire/ -- Stone Energy
Corporation (NYSE: SGY) today announced drilling results from the
deep water Rampart Deep well at Mississippi Canyon Block 116.
Stone generated the prospect and owns a 40% non-operated working
interest in the well.
The Rampart Deep well (the MC 116 #1 well), operated
by Deep Gulf Energy III, LLC, encountered approximately 130
net feet of liquids-rich natural gas pay in three primary zones, as
interpreted by Stone. In addition to the reserve potential of
Rampart Deep, this well also provides critical information that
reduces the exploration risk of Stone's Derbio prospect, which is
positioned up-dip from Rampart Deep and located one block to the
northwest in Mississippi Canyon Block 72. The completion of
the Rampart Deep well will be deferred while the partners analyze
the well data, and will be further evaluated in conjunction with
future Derbio drilling results. Drilling plans for Derbio
will be reviewed with the Rampart Deep partners over the next
ninety days. If Derbio is successful, first production from
the Rampart Deep/Derbio project is expected by late 2019 and could
be a multi-well tie back to the Stone 100% owned Pompano
platform.
Interim Chief Executive Officer and President James M. Trimble stated, "The Rampart Deep well
is encouraging to Stone as this discovery provides us with
potential future reserves as well as important information that
should reduce the risk of our other prospects in the area,
particularly the Derbio prospect. The discovery at Rampart Deep,
along with a success at Derbio, would allow us to further leverage
our infrastructure position at our Pompano platform by generating
additional production and cash flow with minimal incremental
operating cost."
Working interest partners in the Rampart Deep well 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%. Stone currently holds a
100% working interest in the Derbio prospect, but the Rampart Deep
partners may elect into the Derbio well for a 60% total working
interest, proportionate to their respective Rampart Deep working
interests, with the remaining 40% owned by Stone.
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 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