Boston, MA 04/30/2014 (wallstreetpr) – Stone Energy Corporation (NYSE:SGY) soared by nearly 9% on Tuesday after it announced drilling success at its Cardona South well, which is a deep water well located at Mississippi Canyon 29. The company currently owns a 65% working interest in the well.
Productions To Begin Early 2015
As per the released statement, the Cardona South well identifiedmore than 275 feet of net oil in three different sections of the well. The Cardona South attainment spreads the productive zone of the Mississippi Canyon 29 TB-9 well to the adjoining fault block towards the south and sets up a prospective second as well as third well in the fault block. The company intends to flow the Cardona South well along with the earlier discovered Cardona flow to its own Pompano platform, while the first set of production isestimated in early 2015.
Contribute Over Two-fold Volumes
Stone Energy Corporation (NYSE:SGY)’s Chairman, President and Chief Executive Officer David H. Welch mentioned that the latest Cardona South well achievement and the one earlier explored ill allow the company to get ahead with its accelerated development program. The company expects to start production by as early as 2015, taking less than a year since the first Cardona well was drilled. Moreover, the company expects volumes from the two wells to contribute over double capacity to its deep water oil production.
Production shell along with the subsea tree equipment has been been set and cemented in the Cardona South well. At this point of time, the rig will first complete its earlier Cardona well (MC 29 #4 well) drilling operations and will then move to the Cardona South well. On a separate note, the original Cardona well was earlier estimated to have nearly 84 feet of net oil pay, however, after extended valuation, it is now revised to have approximately 96 feet of net oil pay.
