Stone Energy Makes Discovery in the Gulf of Mexico



Stone Energy reports on the success of drilling operations and production tests on exploratory prospects in West Cameron Block 45 and Vermilion Block 276 and a development prospect in South Marsh Island Block 288. D. Peter Canty, chief executive officer, stated, "We are excited about the impact of our recent successes in these fields, which when combined, are expected to add 30.7 MMcfe to our net daily production rate. These results exemplify the value that we are realizing from the continued application of our business strategy of adding new value from mature fields."

West Cameron Block 45: As previously announced on November 11, 2002, drilling and evaluation operations were completed in October 2002 on the OCS-G 299 No. 20 Well at West Cameron Block 45 on the St. George Isle Prospect. The No. 20 well reached a total depth of 16,444 feet and encountered 59 net feet of gas productive sand. After installation of a single well caisson surface facility and tie back to our West Cameron 45 "A" platform, we realized first production from this well on December 16, 2002. The well is currently producing at a gross daily rate of 25.2 MMcf of natural gas and 125 barrels of oil. Stone's interest in West Cameron Block 45 was acquired in February 2001. Stone has a 25% working interest (WI) and 20.3% net revenue interest (NRI) and is the operator of this well.

South Marsh Island Block 288: On November 11, 2002, Stone announced that the OCS-G 2316 No. CB-5 Stk. reached total depth of 17,387 feet. This well drilled up dip from the OCS-G 2316 No. CB-4, which produced approximately 50 Bcf of gas and 2.5 million barrels of oil from the primary objective 14 sand. The No. CB-5 Stk. well found 182 feet of gas pay in three sands, including 48 feet of pay in the 14 sand. The well has been completed and first production from this well was realized on December 8, 2002. The CB-5 Stk. well is currently producing at a gross daily rate of 13.9 MMcf of natural gas and 1,350 barrels of oil. Stone's interest in the South Marsh Island Block 288 field was acquired in December 2001. Stone has a 50% WI and 41.6% NRI in this well. Vermilion Block 276: The OCS-G 21599 No. F-11 Well on the Skorpios Prospect reached total depth of 12,675 feet in November 2002 and encountered 76 net feet of gas in the primary objective, with first production expected before year-end. The No. F-11 well was completed and is being connected to existing production equipment on the "F" platform. The No. F-11 well was production flow tested at a gross daily rate of 20.1 MMcf of natural gas and 557 barrels of oil. Stone's interest in Vermilion Block 276 was acquired in a federal lease sale in March 2000. Stone has an 83.3% WI and 69.4% NRI and is the operator of this well.