Stone Energy Completes 3rd Well on South Marsh Island 288

Stone Energy reports that the OCS-G 2316 No. CB-2 Stk. reached total depth of 13,067 feet from the CB platform. This well targeted attic reserves in the normally pressured CP-8 oil sand, which had previous production of 2.4 million barrels of oil. Additionally, the well tested a 1,300-foot prospective section in a crestal position in the same fault trap and found 498 net feet of oil and gas pay in eight sands, including 98 net feet of pay in the CP-8 sand. The well was completed and is currently shut in with first production anticipated by the end of the second quarter of 2003. Stone has a 50% WI and 41.6% NRI in this well.

The CB-2 Stk Well was the third well drilled in the field during 2002. The field is producing at facilities capacity with approximately 13 MMcfe of gas per day net to Stone curtailed. During the second quarter of 2003, we plan to construct a new pipeline to increase field production capacity. A multi-well exploratory and development drilling program is planned for the property during 2003.