Published:
Stone Energy Corporation Announces Impact From Hurricane Gustav
LAFAYETTE, La., Sept. 5 /PRNewswire-FirstCall/ -- Stone Energy Corporation
(NYSE: SGY) today provided an update on the impact of Hurricane Gustav on its
operations. The adverse weather conditions associated with Hurricane Gustav
resulted in substantially all offshore drilling and production activities in
theGulf of Mexico being suspended as of Saturday, August 30th. Stone safely
evacuated all employee and contract personnel prior to the arrival of the
storm. Net daily production (including volumes from the acquired Bois d'Arc
properties) of approximately 310 million cubic feet of natural gas equivalent
(Mmcfe) was shut-in as a result of the hurricane.
Flyovers of company and certain outside operated properties have begun and
based on an initial assessment, all facilities and infrastructure appear to
have remained intact. The initial inspections indicate that minimal property
damage occurred to some of its facilities. Repairs will begin shortly as
Stone had secured railing, grating and other equipment and supplies in advance
of the hurricane entering into theGulf of Mexico. Stone insures selected
properties and facilities subject to a deductible; however, Stone does not
maintain coverage for business interruption.
Stone has deployed personnel back to itsGulf of Mexico properties and is
beginning to restore production. Factors beyond Stone's control will affect
the timing in fully restoring production even if all the Stone facilities are
operational. These factors include the testing and condition of pipelines and
gas processing plants operated by third parties, as well as the availability
of electrical power to operate third party onshore facilities. Regarding
Stone's drilling program, none of the four contracted rigs were damaged by the
storm, and all are progressing toward resumption of operations. Stone expects
to provide a further update on its operations and production next week as
additional information becomes available.
Stone Energy is an independent oil and natural gas company headquartered
inLafayette, Louisiana, and is engaged in the acquisition, exploration,
exploitation, development and operation of oil and gas properties located
primarily in theGulf of Mexico. For additional information, contact Kenneth
H. Beer, Chief Financial Officer, at 337-237-0410-phone, 337-237-0426-fax or
via e-mail at CFO@StoneEnergy.com.
Certain statements in this press release are forward-looking and are based
upon Stone's current belief as to the outcome and timing of future events. All
statements, other than statements of historical facts, that address activities
that Stone plans, expects, believes, projects, estimates or anticipates will,
should or may occur in the future, including future production of oil and gas,
future capital expenditures and drilling of wells and future financial or
operating results are forward-looking statements. Important factors that could
cause actual results to differ materially from those in the forward-looking
statements herein include the timing and extent of changes in commodity prices
for oil and gas, operating risks and other risk factors as described in
Stone's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed
with the Securities and Exchange Commission ("SEC"). Should one or more of
these risks or uncertainties occur, or should underlying assumptions prove
incorrect, Stone's actual results and plans could differ materially from those
expressed in the forward-looking statements.
SOURCE Stone Energy Corporation
Copyright © 2009, PRNewswire
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Copyright © 2009, NewsBlaze,
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