Stone to pay $299 million for Conoco properties in Gulf of Mexico

Stone Energy Corp., Lafayette, La., said it will pay Conoco Inc. $299.7 million for eight producing properties on federal leases in the Gulf of Mexico, plus some gathering facilities.

Nov. 27, 2001

By the OGJ Online Staff

HOUSTON, Nov. 27 -- Stone Energy Corp., Lafayette, La., said it will pay Conoco Inc. $299.7 million for eight producing properties on federal leases in the Gulf of Mexico, plus some gathering facilities.

The final price for the deal, announced Oct. 10, was announced after all of the preferential rights to purchase that were applicable to any of the properties have expired.

Stone said $4.1 million of the purchase price is associated with two crude oil pipelines that are subject to preferential rights to purchase elections that are due to expire on or before Dec. 17. The deal is due to close by yearend.

Stone said proved reserves associated with the acquisition are 25.7 million bbl of oil and 60.2 bcf of gas.

It said the properties have a reserve life of 9 years based on an initial production rate of 65 MMcfd of gas equivalent net to Stone.

The company said the properties also have some undrilled prospects near existing infrastructure.

The purchased properties are on Ewing Bank Block 305(a), Mississippi Canyon Block 109(b), South Marsh Island Block 9, Ship Shoal Block 176(a), Main Pass Block 311, Main Pass Block 144, Main Pass Block 290(a), and South Marsh Island Block 107(a).