Stone Energy Drills Third Success on Can of Corn Prospect

Stone Energy reports that the fourth well on the Can of Corn Prospect, the OCS-G 18054 No. 5 STK Well in the Gulf of Mexico, was drilled to a bottom hole location approximately 1,500 feet east of, and from the same surface location as, the discovery well, the OCS-G 18054 No. 2 Well. The No. 5 STK encountered 291 net feet of pay in nine sands and successfully extended the proved limits established by the discovery well. Stone expects platforms, production facilities and pipeline installations and hookup of the three successful wells drilled on the prospect will be completed by the end of the first quarter. Production start-up is anticipated in the second quarter. Stone has a 50% working interest and 40.7% net revenue interest in South Pelto Block 22.

The initial phase of development drilling has been completed on the 2003 Can of Corn discovery on South Pelto Block 22. Stone has participated in drilling four wells, three of which were successful. The discovery well spudded in the first quarter of 2003 and drilled to a total depth of 18,869 feet measured depth (MD) (18,027 feet true vertical depth (TVD)) encountering 524 net feet of pay in 11 sands. Operations on this well were suspended and completion of the well will follow the installation of platform and production facilities. The second well, the OCS-G 18054 No. 3 Well, spudded on August 2, 2003 and drilled to a total depth of 19,000 feet MD (18,000 feet TVD) in a sidetrack hole. The No. 3 Well found 205 net feet of pay in eight sands at a bottom hole location approximately 2,000 feet west of the discovery well. The No. 3 Well was completed on October 30, 2003 and operations were suspended awaiting platform and production facility installation. A third well, the OCS-G 18054 No. 5, spudded on November 26, 2003 and was drilled to a total depth of 14,103 feet MD (13,625 feet TVD) without encountering commercial pay sands. The well was subsequently sidetracked to test the eastern limits of the productive area and the downdip extent of a number of reservoirs that were found productive in the discovery well. Drilling of the No. 5 STK began on December 12, 2003 reaching a total depth of 19,887 feet MD (18,001 feet TVD) with completion operations currently in progress.