Stone Energy has sanctioned the development of the Amethyst field in the U.S. Gulf of Mexico.
In its second quarter report, the company revealed that the development plan for Amethyst was sanctioned early in the second quarter of 2014 and long lead items have been ordered for a single well tie-back to the Stone-owned and operated Pompano platform, located less than five miles from the discovery.
Production from the discovery located at the Mississippi Canyon 26 is expected to begin in 2016.
The company in February this year said the deep water Amethyst exploration well in Mississippi Canyon block 26 encountered approximately 90 feet of net hydrocarbon pay.
Analysis of logging, coring and fluid data then confirmed the existence of natural gas, condensate and natural gas liquids in the pay zone (an estimated yield of 60-80 barrels of liquids per million cubic foot of natural gas).
In a quarterly statement today, the company added that production results from the Amethyst well will assist in the evaluation of Stone’s Derbio prospect located nearby.
For the second quarter of 2014, Stone reported net income of $4.4 million, or $0.08 per share, on oil and gas revenue of $205.0 million, compared to net income of $25.9 million, or $0.52 per share, on oil and gas revenue of $222.6 million in the first quarter of 2014, and compared to net income of $39.0 million, or $0.78 per share, on oil and gas revenue of $243.5 million in the second quarter of 2013.
The company explained that lower natural gas and natural gas liquids (NGL) realized prices and a higher unit depreciation, depletion and amortization (DD&A) rate were the primary causes of the reduced earnings in the second quarter of 2014 compared to the first quarter of 2014.