Stone Energy Corporation informed that operations at the Cardona #6 development well, located in Mississippi Canyon block 29 in the Gulf of Mexico, have been proceeding ahead of schedule and below budget, and drilling has been completed through the targeted zones.
According to Stone Energy’s press release, the well encountered approximately 288 feet of net pay in two intervals, similar to the Cardona #5 net pay of 275 feet. Analysis of logging and pressure data confirmed the existence of oil in the pay zones. The well has been cased and cemented across all productive zones, the subsea tree has been installed and completion operations have begun.
The well will be tied into the company’s existing Cardona subsea infrastructure, which flows into Stone’s Pompano platform. It is expected that gross production from Cardona #6 will reach approximately 5,000 Boe per day (65% working interest) from the lower completion by late September. Stone said that the upper completion is expected to have a similar production rate and will be accessed in the future by hydraulically shifting sleeves between the upper and lower completions.
Stone added that, upon completion of the Cardona #6 well, the ENSCO 8503 deepwater drilling rig will be released for approximately 60 days to receive scheduled maintenance and to be outfitted with mooring capabilities. The rig will then be mobilized to Mississippi Canyon block 26 to finish the completion of the Amethyst discovery (100% working interest). Amethyst will also be tied back to the Pompano platform, where first production is expected early in the first quarter of 2016.
Following the Amethyst completion, the rig is currently projected to drill the Cardona#7 development well and the Lamprey deep water exploration prospect.
Production for the second quarter is expected to be at or above the high end of the previous guidance range of 246-258 Mmcfe per day.The increase is a result of reduced scheduled third-party pipeline downtime in the GOM deepwater and flatter than expected production declines in Appalachia. Additional upward revisions in Appalachian production may be realized in the second quarter of 2015 earnings results pending participation elections by Stone’s operating partners.