Stone Energy Corporation (ticker: SGY) estimates that its 2018 capital expenditure budget will reach up to $212 million. The budget allocates 36% to exploration, 27% to development and 37% to P&A expenditures.
Interim CEO and President James M. Trimble said, “We exited 2017 with solid operational results and a strong financial position, and with several prospective near-term, deep water drilling opportunities. We drilled a successful development well at Mt. Providence in December 2017 and expect it to be tied into our Pompano facility by the third quarter of 2018.”
“We currently expect to spud the Stone-generated Derbio exploration prospect in late-February 2018 and could have another non-operated drilling opportunity in the first half of 2018. Our strong liquidity position provides us with financial flexibility for 2018. In addition, we continue to advance the previously announced combination of Stone with Talos Energy LLC,” Trimble said.
Production
Net daily production during Q4 2017 averaged approximately 17.6 MBOEPD, compared to net daily production of approximately 19.2 MBOEPD for the quarter ended September 30, 2017. Q4 2017 volumes included five full days of downtime from Hurricane Nate and a ten-day planned shut-in of the Pompano platform in November to replace a compressor engine. The production mix for Q4 2017 was approximately 72% oil, 21% natural gas and 7% NGLs.
Net daily production volumes from the Gulf of Mexico for full year 2017 averaged 19.2 MBOEPD, however, this excludes production from the Appalachia properties that Stone sold on February 27, 2017.
The company expects production rates to range from 17.5 MBOEPD to 18.0 MBOEPD for the first quarter of 2018.
Proved reserves
Stone said that as of December 31, 2017 the company had approximately 32.5 MMBOE for proved reserves in the Gulf of Mexico (this number excludes the divested Appalachia properties). At the end of 2016, the company had 35.4 MMBOE in the Gulf of Mexico.
The year-end 2017 estimated proved reserves were 67% oil, 26% natural gas and 7% NGLs, on an equivalent basis. This estimate included proved developed reserves of approximately 28.3 MMBOE and proved undeveloped reserves of approximately 4.2 MMBOE.
