OPERATIONS
Gulf Of Mexico
DEEP WATER
The deep waters of the Gulf of Mexico have been a major focus of oil and gas exploration and production companies as early as the 1960s, and it can be argued that the Gulf of Mexico is the most prolific oil and gas producing region in the world. New oil-rich fields are being discovered year after year, propelling some recent estimates of total reserves in the Gulf to exceed 50 billion barrels.

Though the Gulf has multiple highly promising regions that continue to be discovered, it is more technically challenging than ever before to recover these reserves which lie deep beneath the ocean and the ability to operate with commercial success in the deep waters in the Gulf of Mexico is limited. Companies must have the proven technical experience and expertise for understanding and interpreting data to identify the highest quality prospects, and they must also have access to essential capital resources for the execution of appropriate risk-weighted investments that generate the highest rates of returns. Stone Energy Corporation is proud to be recognized as one of these companies both by the industry and investment community.

Stone holds interests in over 100 lease blocks throughout the Gulf of Mexico. Many of our prospects and projects are in the northern Mississippi Canyon and southern Viosca Knoll regions, approximately 100 miles southeast of New Orleans, LA. Our operations in this area are anchored around the Pompano and Amberjack platforms where we are executing drilling programs and flowing discovered reserves back to for processing. We are drilling multiple other prospects in the area which also have the possibility to be flowed back to the Pompano or Amberjack platforms. The ability to access and leverage infrastructure near deep water projects can be the determining factor when planning a deep water well. The option to flow volumes back to these platforms provides us with a competitive advantage in this area of the Gulf.

To see more about our operations and most recent developments in the deep waters of the Gulf of Mexico, please visit our investor relations page for our most recent conference presentation, or click here.

DEEP GAS OPERATIONS
Throughout the Gulf Coast region, both onshore and in the shallow waters of the Gulf of Mexico, there are large natural gas reserves approximately 15,000 to 25,000 feet below the earth’s surface. Natural gas reserves at these depths are commonly referred to as “deep gas.” Traditional drilling methods were not sufficient to recover the reserves, however with today’s technology recovery of these reserves is not only possible, but is also an attractive investment.

In many areas onshore and of the shallow waters of the Gulf Coast region, necessary infrastructure is already in place for transport of the reserves which significantly decreases the time it takes to bring these products to market and to more quickly provide cash flows which increases the rate we may receive returns. Stone holds multiple lease interests with plans to drill potential prospects, some of which have already proved successful such as La Cantera and Tomcat. We will continue to build and develop our deep gas drilling program inventory as we explore for additional high potential prospects.

For more detail on our deep gas operations, please visit our investor relations page for our most recent conference presentation, or click here.

CONVENTIONAL SHELF OPERATIONS
Stone Energy maintains core properties in the shallow waters of the Gulf of Mexico, also known as the conventional shelf. For many years Stone was primarily a conventional shelf production company, and as late as 2009, conventional shelf assets comprised a majority of the company’s assets. The conventional shelf legacy assets provided much of the cash flows that allowed Stone to move forward in to the shale plays and deep water exploration as the company pushed itself in to high growth areas to become the company that it is today. We have sold most of our properties in the conventional shelf, and have kept only a few highly prolific projects which still produce healthy cash flows back to the company.

Our Priority
As a Company, Stone Energy maintains a “best in class” safety performance based on industry standard metrics. We use responsible and prudent operational practices during every phase of the well – design, drilling, completion, production maintenance and plugging and abandonment – to ensure that the fluids and commodities recovered are properly handled both in the well and on the surface. We collaborate on and stay apprised of best practices that may reduce any potential environmental risks.

625 East Kaliste Saloom Rd. Lafayette, La 70508
Phone: (337) 237-0410 Fax: (337) 521-2072
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