Stone Energy Provides Production Estimate Update
Stone Energy Corporation reported that second quarter 2001 production volumes are expected to be less than previously announced due mainly to three independent, unanticipated events that occurred during the month of June. These events impacted existing production at several Stone fields and delayed the commencement of new production beyond original estimates. As a result, Stone currently estimates second quarter 2001 average net daily production will be approximately 5% less than previously announced estimates. The revised second quarter 2001 production estimate is still expected to result in an approximate 4% increase in average daily production from the first quarter of 2001.
The first event impacting production was Tropical Storm Allison. The severe weather conditions generated by the storm in the Gulf of Mexico resulted in the shut in of certain production where unmanned platforms were not accessible by boat or helicopter and the delay in the equipment installation and/or pipeline connection work necessary to place three new wells on production. Next, an equipment failure at one of Stone's properties resulted in a complete shut down of field production until the equipment could be replaced and installed. The third event was the temporary shut in of an independently operated production pipeline for facilities repairs and maintenance. As a result of this pipeline action, production at several Stone fields was shut in or significantly curtailed.