Stone Energy plans to offer 5 million shares
LAFAYETTE, La. (AP) — Stone Energy Corp. has filed notice with the Securities Exchange Commission of its intent to sell 5 million shares of common stock.
New Orleans CityBusiness reported (http://bit.ly/1sasSAO) the Lafayette-based oil and gas company says it expects to raise more than $216 million from the offering.
In a prepared statement, Stone said it would use the money for general purposes. Those could include developing its Amethyst discovery in the Gulf of Mexico, drilling of a second well at the Cardona South site in the Gulf, the Utica Shale development in the Appalachian basin in the eastern United States and for acquisition of more acreage in the shale tract.
CEO David Welch said Stone will begin drilling its first Utica Shale exploration well shortly and will go ahead with tests to determine its commercial viability.
In February, Stone announced discoveries at its Tomcat and Amethyst deep water Gulf of Mexico wells. The company has complete working interest in Amethyst.
Production on the Tomcat well is expected to begin in June. The Cardona and Cardona South wells will start production the first quarter of 2015, and Amethyst production should begin the first quarter in 2016.
“We have started the year with four successful discovery wells which provide us with short and intermediate term production,” Welch said. “Overall, it has been an excellent start to 2014
Information from: New Orleans CityBusiness, http://www.neworleanscitybusiness.com