Stone Energy Corporation has provided an operational update on its Cardona development project in the Gulf of Mexico, and capital expenditure update.
In the deep water, the Cardona development project in the Gulf of Mexico, has been proceeding ahead of schedule. It is now expected to begin initial production by December 1, 2014, only six months after drilling the Cardona South well.
“We believe that gross production will reach approximately 12,000 Boe per day for the two wells (65% working interest). In Appalachia, our Utica Shale well has been successfully drilled with testing expected in the fourth quarter of 2014. Additionally, we continue to realize efficiencies in our Marcellus drilling program and now expect to drill over 35 wells in 2014 compared to the original forecast of 30 wells.
“Long lead time items have been ordered for the Amethyst deep water project, with production expected by mid-2016. Regarding rig commitments, progress has been made on securing a multi-year deep water rig contract commencing in mid-2015, as well as securing a platform rig for the Amberjack platform program, which is expected to start in the first quarter of 2015,” the company explained in the press release.
Lastly, Stone recently acquired a 40% working interest in the Noble Energy-operated Madison prospect located in Mississippi Canyon Block 479, which is scheduled to be drilled in the fourth quarter of 2014,” said the company.
As a result of the drilling successes, the follow-up development activity, the added Utica test well, the increased number of Marcellus wells and the Madison prospect, the Board of Directors has authorized an increase in the 2014 capital expenditure budget from $825 million to $895 million, which excludes major divestitures and acquisitions and capitalized SG&A and interest. The final 2014 capital expenditure amount and the allocation of capital across the various areas is subject to change based on several factors including permitting times, rig availability, non-operator decisions, farm-in opportunities and commodity pricing.