By OGJ editors
HOUSTON, Jan. 4 -- Stone Energy Corp., Lafayette, La., has signed a purchase and sale agreement to acquire from a small independent company 35,000 exploration acres in the Williston basin of North Dakota and Montana.
Much of the acreage is within the Bakken formation fairway with "attractive stacked-pay potential." Stone expects to begin exploring the acreage this year with a multiwell drilling program.
The $85 million acquisition includes proved reserves and a minimal amount of oil production. About 85% of the purchase price will be allocated to unevaluated acreage.
Stone Energy expects to fund the acquisition with borrowings under the company's bank credit facility pending final closing, expected in February.