Stone Energy Begins Production at the Fili Prospect

Stone Energy says that the well on its Fili Prospect has been completed as a dual producer and is currently flowing at a combined gross daily rate of approximately 2 MMcf of gas and 1,600 barrels of oil per day. The well is located in Mississippi Canyon Block 109 in the Gulf of Mexico. The No. A-33 well was spud back in October of 2003 and encountered 409 net feet MD of gas and oil pay in nine sands.

In other area news, the No. A-25 STK2 Well, a 13,205 foot MD (10,744 foot TVD) test of the Sweet Pea Prospect found 52 net feet MD of oil pay in the P Sand. Completion operations are underway on the No. A-24 STK3 Well, an 11,055-foot MD (8,523 foot TVD) test of the 8,200 and 8,300 foot sands that logged 196 net feet of oil and gas pay in three sands. Several additional prospects are planned this year in the ongoing "A" platform drilling program, which began in the second quarter of 2003. Stone has a 33% WI and a 27.5% NRI in Mississippi Canyon Block 109.

During the fourth quarter of 2003, Stone drilled and evaluated 21 wells, of which 18 were productive. For the year, Stone drilled 52 wells, of which 44 wells, or 85%, were productive.

Stone expects to drill 62 gross (39 net) wells during 2004 with a capital expenditures budget of approximately $280 million, excluding acquisitions, capitalized interest and capitalized general and administrative expenses.