Stone Energy notes informal reserves inquiry

Stone Energy Corp. said it has been notified that the US Securities and Exchange Commission is conducting an informal inquiry into the Lafayette, La., producer's revised gas reserves.

Nov. 23, 2005

By OGJ editors
HOUSTON, Nov. 23 -- Stone Energy Corp. said it has been notified that the US Securities and Exchange Commission is conducting an informal inquiry into the Lafayette, La., producer's revised gas reserves.

On Nov. 8, Stone Energy said it plans to restate results from 2001 through the second quarter of 2005 and said it learned of possible lapses in reserve bookings.

During the third quarter, Stone reviewed its proved reserves holdings for all of its fields and said its estimate is 670 bcf of gas equivalent. That compared with proved reserves of 825 bcf on Dec. 31, 2004.

Among various items including discoveries, additions, and purchases, Stone reported 10 bcfe from hurricane losses and 161 bcfe from downward revisions of previous estimates.

Stone said a full reserve report by an engineering firm is expected by yearend.