Stone Energy Strikes Oil at Bohai Bay Well
The CFD No. 22-2-1 well was drilled by the operator, Kerr-McGee Corp., to a total depth of 9,065 feet. Subsequently, the operator performed drill stem testing and side wall core analyses on the well. The initial drill stem test in one of the zones indicated an average flow rate of approximately 700 barrels of oil per day.
The possible discovery is awaiting appraisal by additional well(s) to determine if it is commercial and whether development will proceed. At that time Stone will be able to determine the course of development and the type of facilities required.
As previously announced, Stone entered into an agreement to participate in the drilling of two exploratory wells on two offshore concessions in Bohai Bay, China. After drilling these two wells, Stone will have the option to earn interests in the two concessions, which collectively cover 1 million acres. The second exploratory well is expected to spud by the end of 2006.