Stone Energy Corporation
(SGY - Analyst Report
) announced exploration discoveries at its 100% operated prospects – deepwater Amethyst and deep gas Tomcat.
Located in the Mississippi Canyon block 26, the deepwater exploration well Amethyst hit around 90 feet of net hydrocarbon pay in one interval. Evaluation of logging, coring and fluid data established the presence of natural gas, condensate and natural gas liquids in the pay zone. The interval, which has been placed safely behind pipe for a future completion, is estimated to yield 60–80 barrels of liquids per million cubic foot of natural gas.
A complete analysis, including seismic and subsurface data integration, is necessary prior to confirming the hydrocarbon quantities and approval of a particular development plan. A probable development option is a single or multi-well tie-back to Stone’s 100% owned Pompano platform, located less than 5 miles from the discovery.
Located at West Cameron block 76, deep gas exploration prospect Tomcat also points at a commercial find about 30 feet of net hydrocarbon pay in the Camerina interval. Well log analysis, together with offset Camerina production history, implies that the zone is likely to yield rich natural gas with about 60 barrels of condensate per million cubic feet of natural gas as well as natural gas liquids volumes. The production is scheduled to begin in the second half of 2014. Per the initial development plans, a tie-back to the nearby Stone-operated East Cameron block 64 production platform is possible.
The rigs remain on location at both Amethyst and Tomcat to conduct operations and prepare the wells for future production.
Stone Energy carries a Zacks Rank #3 (Hold). However, there are other stocks in the oil and gas sector – Helmerich & Payne, Inc.
(HP - Analyst Report
), Matrix Service Company
(MTRX - Snapshot Report
) and Matador Resources Company
(MTDR - Snapshot Report
) – which hold a Zacks Rank #1 (Strong Buy) and are expected to perform better.