Stone Energy Makes Deep Gas Discovery

Stone Energy has made a deep gas discovery on its Seagull Prospect on South Timbalier Block 8, well #3. The well was drilled using GlobalSantaFe's jackup, GSF High Island III.

This is the third consecutive deep gas discovery the company has made this year from its Deep Shelf Exploratory Program which includes nine scheduled tests for 2003. Stone expects to bring the well on production by mid-June. Three of the five productive sands are stratigraphically deeper than previously established producing reservoirs in the field.

During the first quarter of 2003, Stone drilled nine successful wells and one dry hole resulting in a 90% drilling success rate. Stone has spudded seven wells during the second quarter of 2003 with two discoveries and five wells currently drilling. Through May 5, 2003, Stone has spudded 16 of the 52 wells planned for 2003. Stone holds a 100% interest in the South Timbalier Block 8, well #3.