Stone High Bidder on Seven Blocks

Stone Energy reports that it submitted the apparent high bid (AHB) on seven Central Gulf of Mexico blocks in the Minerals Management Service (MMS) Outer Continental Shelf Sale 198, which took place earlier this week in New Orleans. The AHBs are subject to a review process by the MMS before they can be awarded.

Stone's share of the lease bonuses for the seven AHBs totaled approximately $5.3 million. Stone would acquire a 100-percent working interest on four of the blocks and a 50-percent working interest on the remaining three blocks, which were the subject of joint bids.

Subject to the MMS's review process, the lease acquisitions will add approximately 38,040 gross acres and 29,400 net acres to Stone's inventory. The AHB on each block is indicated below:

                                            Working    Stone's
Block                          AHB          Interest   Share
-----------------------------  ----------   ---------  --------
Green Canyon Block 403*        $1,886,000      50%      $943,000    
Green Canyon Block 404*         4,140,000      50%     2,070,000
Mississippi Canyon Block 118*   1,565,500      50%       782,750
Mississippi Canyon Block 669*     530,000     100%       530,000
South Marsh Island Block 170      330,300     100%       330,300
South Marsh Island Block 178      330,300     100%       330,300
South Marsh Island Block 179      330,300     100%       330,300
TOTALS                         $9,112,400             $5,316,650  
* Indicates deepwater block.