More drilling in the works: Stone plans more wells in US Gulf of Mexico.
Stone ups production numbers
US junior Stone Energy said it expects third-quarter production to be at the upper end of its earlier forecast, sending its shares up 5%.
Stone Energy, which narrowed its full-year production view, expects third-quarter net daily production to average between 230 and 235 million cubic feet equivalent.
It previously forecast production of 215 to 235 mmcfe.
The company sees average daily production this year in the range of 210 to 220 mmcfe per day, compared with its earlier forecast of 205 to 225 mmcfe per day.
The company also said its borrowing base will remain at $425 million, according to a Reuters report.
As of 30 September, Stone Energy had $250 million in borrowings outstanding on its credit facility and another $69 million in outstanding letters of credit.
Its cash position was about $97 million.
The company also gave updates on three drilling projects in the US Gulf of Mexico.
Stone wrapped up drilling and testing of a delineation well at Pyrenees is complete but mechanical problems kept the company from testing a prospective deeper zone at 25,000 feet.
Stone holds a 15% working interest in the Newfield Exploration-operated project.
In early November, Stone expects to move in a platform rig to the Amberjack platform in Mississippi Canyon block 109 and spud the first well in December. The company plans four to five wells in next year on the 100%-owned project.
The company also has a rig on location at Vermilion Block 96 and has spud the first of possibly two wells. The Cardinal exploration well will be drilled to about 8000 feet and could be followed by a second well, Blue Jay, which would be drilled to about 10,850 feet. Stone has a 100% working interest in the wells.