Stone Energy Corporation announced the signing of a definitive agreement with Anadarko Petroleum Corporation, which provides for the acquisition by Stone of Anadarko's 25% working interest in the five block deep water Pompano field in Mississippi Canyon, a 22% working interest in Mississippi Canyon Block 29, and a 10% working interest in portions of MC 72.
The purchase price under the agreement is $67 million in cash plus the assumption of asset retirement obligations, subject to customary closing adjustments. Current net production from the Pompano field attributable to this acquisition is approximately 1,000 barrels of oil per day and 3 million cubic feet of natural gas per day.
Stone's estimate of proved reserves attributable to this acquisition is approximately 5.9 million barrels of oil equivalent at December 31, 2011. Stone's reserves estimate is based on Netherland Sewell & Associates year-end reserve estimate for Stone's portion of the Pompano field, proportionately reduced for the different working interest.
The acquisition is subject to preferential rights (MC 29 and MC 72 only), due diligence, and other customary closing conditions, and is expected to close by late second quarter of 2012.
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