Stone Energy Facilities Have Minor Damages from Hurricane Isaac
Stone Energy Corporation provided an update of the impact of Hurricane Isaac. All major facilities have been safely visited and re-manned. Damage to Stone’s facilities across the Gulf of Mexico (GOM) appears to be very minor with no significant issues or problems.
Prior to the storm, Stone Energy Corporation’s daily production rate was approximately 35,000 barrels of oil equivalent (boe) from the GOM and 8,500 boe from Appalachia. Stone began shutting in and de-manning platforms in response to Hurricane Isaac on August 26 and by August 28 virtually all of the GOM production was shut-in. Following the storm, Stone began returning its fields to production. As of September 3, GOM daily production was approximately 18,000 boe with the remaining production being brought back on line as third party facilities allow. The Amberjack and Pompano fields remain shut-in waiting on onshore processing facilities, but expect to resume production during the next few days.
Stone’s current average daily rate of production, including the Marcellus shale production, is approximately 27,000 boe. The quarterly impact on production guidance is estimated to be approximately 2,000 – 4,000 boe per day, lowering the quarterly guidance to 38,000 – 40,000 boe per day assuming no further storm disruptions. Annual production now may be on the lower end of the current annual guidance of 41,000 – 43,000 boe per day range (245-260 Mmcfe per day).
Press Release, September 07, 2012