Stone Energy Announces Deepwater Discovery In Pyrenees Prospect, Gulf Of Mexico

Published: 02-Jun-2009

By: Staff Writer Staff Writer Staff Writer

Stone Energy Corporation (Stone Energy) announced a discovery on its deepwater Pyrenees prospect, located on Garden Banks block 293. The well encountered about 125 feet of net hydrocarbon pay in three zones. Stone Energy has a 15% working interest in the prospect and a small overriding royalty. The Pyrenees well has been temporarily abandoned while the partnership is working on field development plans.

Delineation drilling on the Pyrenees discovery is planned for the second half of 2009.

David Welch, president and chief executive officer commented, “This is an important exploration well for Stone Energy. Pyrenees is the first prospect for Stone's new Deepwater Exploration team, which is headed by Rich Smith. We hope for Pyrenees to be the first of a number of deepwater successes for Stone.”

Rich Smith, senior vice president of exploration and business development stated, “Stone seized the opportunity to participate in the large Central Gulf of Mexico Lease sales in October 2007 and March 2008. During those sales, the Company increased the number of its deepwater blocks from 10 to 64 blocks. Stone continues to evaluate prospects on our leasehold as well as look for other opportunities. We expect to participate in several other deepwater exploration wells in 2010 at an appropriate working interest.

Newfield Exploration Company operates the development with a 40% working interest. Additional partners include: Stone Energy Corporation 15%, Ridgewood Energy Corporation 15%, Arena Exploration 15% and Deep Gulf Energy LP 15%.

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