Stone Energy Says Impact of Katrina Minimal
Stone Energy Corporation
|Thursday, September 01, 2005
Stone Energy says that a flyover of all company and certain outside operated properties has been completed and based on this initial assessment, all facilities and infrastructure remain intact. In general, the initial inspections indicate that some minor property damage has occurred. Repairs are ongoing as Stone made advance purchases of railing and grating upon arrival of the hurricane into the eastern Gulf of Mexico. Additionally, all drilling rigs which are currently being utilized, and those contracted by Stone for future work, sustained little or no damage. As a result, the remainder of Stone's drilling program for 2005 should experience delays of only two to three weeks.
Stone has deployed personnel back to the majority of its Gulf of Mexico properties and has begun restoring production. Of the approximate 240 million cubic feet of natural gas equivalent shut-in as a result of Hurricane Katrina, approximately 90 million cubic feet is back on line. Stone continues to add production back on line daily. Factors beyond Stone's control may affect the restoration of full production. These factors include the condition of pipelines and gas processing plants operated by third parties. Stone's current average daily rate of production, including Rocky Mountain and Williston Basin production, is approximately 115 million cubic feet of gas equivalent.