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June 30, 2014
16:17 EDTSGYStone Energy sells non-core GOM properties to Talos Energy Offshore
Stone Energy announced a definitive agreement to sell its non-core Gulf of Mexico, GOM, conventional shelf properties to Talos Energy Offshore for $200M in cash and assumed future undiscounted abandonment liabilities estimated at approximately $117M. These properties represented production volumes of approximately 57 MMcfe per day for the first quarter of 2014. 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. Chairman, President and CEO David H. Welch stated, "The sale of our non-core GOM shelf properties will allow us to further focus our efforts on GOM deep water, gulf coast deep gas and Appalachian projects, which we have targeted for our growth. 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, 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 $300M in non-core GOM shelf properties with over $140M in future undiscounted abandonment liabilities." The effective date will be April 1 and the transaction is expected to close by early August, subject to customary closing conditions and adjustments. After the closing of this transaction, Stone will be providing updated 2014 guidance, which will adjust for the proposed divestiture.
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