Stone Energy Says South Pelto 22 Production Stabilized

Stone Energy reports that production from South Pelto Block 22 has reached stabilized producing rates. Preliminary estimates for this new field indicated primarily natural gas production; however, the initial completions are generating primarily oil production. Two wells in the field are flowing at a combined stabilized gross daily rate of approximately 2,000 barrels of oil and 5.3 MMcf of natural gas. The third well will be re- completed within the next seven to ten days to an up-hole zone after depletion of the first of six pay zones logged productive in the well. Stone has a 50% working interest and 40.7% net revenue interest in these wells before adjustment for royalty relief.