Stone Energy to sell non-core GOM properties to Talos Energy Offshore

Posted on 04 July 2014

Stone Energy Corp announced a definitive agreement to sell its non-core Gulf of Mexico (GOM) conventional shelf properties to Talos Energy Offshore for $200 million in cash and assumed future undiscounted abandonment liabilities estimated at approximately $117 million. These properties represented production volumes of approximately 57 million cu ft equivalent per day for Q1 2014, at 58% natural gas. The estimated proved reserves associated with these properties represented approximately 9% of Stone’s year-end 2013 estimated proved reserves. Stone will retain an option for a 50% working interest in the deep drilling rights on the properties.

“The sale of our non-core GOM shelf properties will allow us to further focus our efforts on GOM deepwater, Gulf Coast deep gas and Appalachian projects, which we have targeted for our growth,” Stone Energy Chairman, President and CEO David H. Welch stated. “We also retained the right to drill deep gas prospects on the divested properties. Our remaining conventional GOM shelf properties will consist of two core operated fields currently producing approximately 6,000 boe per day (86% oil), which will allow us to better focus our human capital and financial capital. Together with the sale of our two onshore south Louisiana properties in late 2013 and first quarter 2014, we have sold approximately $300 million in non-core GOM shelf properties with over $140 million in future undiscounted abandonment liabilities.”

The transaction is expected to close by early August 2014, subject to customary closing conditions and adjustments.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 31 October 2014

    Japan Drilling to operate new jackup under construction at Keppel

    The KFELS Super B Class design has a drilling depth of 35,000 ft. The rig's leg structure is designed to provide enhanced robustness for operations at 400 ft water depth...

  • 29 October 2014

    New intelligent water management solution based on oxidizer technology

    Nalco Champion has launched the RenewIQ line of oilfield water reuse solutions to help operators reduce freshwater consumption and associated handling costs...

  • 29 October 2014

    Baker Hughes launches all-electric intelligent well system

    Baker Hughes has commercially released its MultiNode all-electric intelligent well system. It allows operators to remotely monitor and control a greater number of production zones...

  • 29 October 2014

    Tercel collaborates with TOTAL to design MicroCORE PDC drill bit

    Tercel Oilfield Products has launched the MicroCORE cutting system at the 2014 SPE Annual Technical Conference and Exhibition in Amsterdam. The MicroCORE cutting...

  • 28 October 2014

    First extension well in pre-salt Libra leads to oil discovery

    The Libra consortium announced that the drilling of the first extension well in the Libra area, known as 3-BRSA-1255-RJS (3-RJS-731), has proven the discovery of high-quality oil...

  • Read more news