By OGJ editors
HOUSTON, Feb. 15 -- Stone Energy Corp., Lafayette, La., has budgeted $360 million for capital expenditures in 2006, compared with 2005 spending of $380 million.
Of the 2006 budget, 30% is to be spent on Gulf of Mexico shelf properties, 35% on operations in the Rocky Mountains and Williston basin, and the remainder primarily on deepwater and deep shelf exploration in the gulf.
Stone expects 2006 net production to average 200-230 MMcfd of natural gas equivalent, compared with an estimated 228 MMcfd last year. Stone is currently producing 200 MMcfd of gas equivalent and expects production for the quarter to reach as high as 215 MMcfd as key gulf fields come back on line and third party pipeline and processing facilities become more accessible following the 2005 hurricanes.
For 2006, Stone plans to increase production in the Rockies and Williston basin by more than 50% over its 2005 average of 24 MMcfd of gas equivalent.
It plans to drill 32 gross wells (20 net) in the Williston basin and 24 (9 net) at Pinedale and Jonah fields.
Stone's drilling program through January included a successful exploratory well at its 100%-held Lexus Prospect on East Cameron Block 121 and seven development wells in the Williston basin and Pinedale Anticline. Stone is scheduled to drill two additional deep shelf prospects in the first quarter and will continue to evaluate exploration opportunities in Williston basin.
Stone estimates 2005 yearend proved reserves at 593 bcf of natural gas equivalent, down from 670 bcf on Sept. 30, 2005. For the year, production totaled 83 bcf and reserves additions, 88 bcf.
Stone had lowered its reserves by 171 bcf of gas equivalent from 2001 through the second quarter of 2005. This action has made the independent producer the subject of an US Securities and Exchange inquiry (OGJ, Dec. 12, 2005, p. 34).
