Kerr-McGee, Stone Energy ink Gulf of Mexico exploration pacts

Stone Energy Corp., Lafayette, La., has entered into a series of exploration agreements with Kerr-McGee Oil & Gas Corp. covering interests in 30 Kerr-McGee leases in the Gulf of Mexico. Stone will commit $50 million to acquire 16.67- 50% working interests, while Kerr-McGee will remain operator, retaining 50-75% working interests.

Oct. 26, 2004

By OGJ editors

HOUSTON, Oct. 26 -- Stone Energy Corp., Lafayette, La., has entered into a series of exploration agreements with Kerr-McGee Oil & Gas Corp. covering interests in 30 Kerr-McGee leases in the Gulf of Mexico.

Stone will commit $50 million to acquire 16.67- 50% working interests, while Kerr-McGee will remain operator, retaining 50-75% working interests.

The agreements cover deepwater and deep shelf prospects, including the Essex prospect on Mississippi Canyon Blocks 23, 24, and 25, the Kung Pao prospect on Garden Banks Block 171, and the Fawkes prospect on Garden Banks Block 303. The Kung Pao and Fawkes prospects, to be spudded in the fourth quarter, are potential satellite tiebacks to the Baldpate facility on Garden Banks Block 260.

The companies will share interests in six exploratory wells through 2005 and within the next 2 years will work together in deepwater prospects on Garden Banks and Green Canyon and in deep shelf leases on Grand Isle, Ship Shoal, South Timbalier, Vermilion, and South Marsh Island.