Stone Energy Sells Non-Core Properties in Rocky Mountains
|Wednesday, July 14, 2004
Stone Energy has sold its interests in 21 non-core properties located in various regions of the Rocky Mountains for approximately $8 million. The transaction, which has an effective date of June 1, 2004, closed on July 6, 2004; therefore, the reserves and production associated with these properties will remain on Stone's books as of June 30, 2004. The divested properties comprise approximately one percent of Stone's total estimated proved reserves at December 31, 2003 and included approximately 28% of Stone's well count in the Rockies. At the time of the sale, Stone estimates that average net daily production from the 21 fields was less than 2.0 million cubic feet of natural gas equivalents. All of the divested properties were held by Stone's wholly owned subsidiary, Stone Energy, L.L.C.
"Even though this divestiture will cause a slight decrease in proved reserves and production, the divestiture is strategically important to Stone enabling a more intense focus on projects that have a more material impact on our long-term reserves and production profiles," stated David H. Welch, President and Chief Executive Officer. "We are delighted by the swift execution of this sale and current opportunities that exist to redeploy this capital."