Borrowing Base Confirmation, Guidance Increase, and Operational Update Provided by Stone Energy (SGY)
Stone Energy Corporation (NYSE: SGY) today announced that its semi-annual borrowing base re-determination process has been completed and the borrowing base will remain at $425 million.
As of September 30, 2009, Stone had $250 million in borrowings outstanding on its credit facility and another $69 million in outstanding letters of credit, leaving $106 million in availability on the facility. Stone's cash position as of September 30, 2009 was approximately $97 million.
Guidance update:
Stone announced that for the third quarter of 2009 net daily production is expected to average between 230-235 MMcfe (millions of cubic feet equivalent), which is in the upper end of the previously announced guidance of 215-235 MMcfe. Stone now expects its full year 2009 average daily production to be in the range of 210-220 MMcfe per day compared to its previous annual guidance of 205-225 MMcfe per day.
Operational updates include:
Garden Banks Block 293 (Pyrenees Prospect). The delineation well at Pyrenees is now complete and provided the necessary information to appraise the three pay zones discovered in the initial well. Using this data, Stone (15% working interest) and Newfield Exploration (operator) expect to propose a development program which might include the appraisal of several shallow sands and possibly a deeper objective at 25,000 ft which we were unable to evaluate with the delineation well due to mechanical issues.
Mississippi Canyon 109 (Amberjack Field). Production into the new re-routed pipeline at Amberjack commenced in early August and barging operations ceased at that time. In early November, Stone expects to mobilize a platform rig to the Amberjack platform and initiate drilling operations in December. Stone expects to drill 4 or 5 wells during 2010. Stone operates Amberjack and owns a 100% working interest.
Vermilion Block 96 (Cardinal/Blue Jay). A drilling rig is on location at Vermilion Block 96 and has spud the first of possibly two wells. The first prospect (Cardinal) will be drilled to approximately 8,000 ft. If successful, it will be followed by a second well (Blue Jay), which will be drilled to approximately 10,850 ft. Both wells have multiple hydrocarbon targets and each should take approximately 15-20 days to drill. Stone has a 100% working interest in the wells.
Appalachia Basin (Marcellus Shale Play). Stone has more than 30,000 net acres leased in the Marcellus Shale Play. Stone currently has two operated rigs in West Virginia and northeastern Pennsylvania. Stone expects to drill 4 or 5 wells in West Virginia during the remainder of this year as well as 2 or 3 wells in Pennsylvania. The latest vertical well in West Virginia tested at a rate of 1.5 MMcfe per day and another vertical well is scheduled to be fractured this week. Stone continues to permit a number of horizontal and vertical wells in both West Virginia and Pennsylvania, and expects to ramp up its horizontal drilling activity in 2010. The Company is also engaged in activities to enhance its leasehold. Stone is designated operator on most of its leasehold and generally owns a 50%-100% working interest in all of its leases.
Create E-mail AlertRelated Categories
Corporate NewsGuidance
Stocks Mentioned
+0.00Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
