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Stone hits pay at Mt. Providence

Written by  OE Staff Wednesday, 10 January 2018 15:11

US-based Stone Energy hit oil at its 100%-owned Mt. Providence development well in Mississippi Canyon block 28, in the deepwater US Gulf of Mexico.

The Mt. Providence well (also known as MC 28 #4) hit approximately 153ft of high quality, primarily oil pay in one Miocene interval with no visible water level, which exceeded pre-drill expectations, the company said. Completion operations will begin in Q2 2018 with first production expected early Q3.

The well is expected to have an initial production rate of approximately 3000-5000 boe/d and will be tied back to the 100% Stone-owned Pompano platform through existing subsea infrastructure. See OE's feature on Pompano here.

James M. Trimble, Stone Energy's interim CEO and President said: "We are excited about the Mt. Providence drilling results. This successful well will quickly generate additional production and cash flow with minimal incremental operating cost since we can capitalize on existing subsea infrastructure and available capacity at our Pompano platform. I appreciate the efforts of the entire Stone team that contributed to this success."

Separately, the Derbio well (also known as MC 72 #3) will spud in late January 2018 with results expected early Q2 2018. Derbio follows the Rampart Deep success announced in September 2017. If successful, the Rampart Deep/Derbio project could be a multi-well tieback to Pompano, with first production expected by late 2019.

Stone holds 40% non-operated interest in Derbio. Its partners on the prospect are Deep Gulf Energy III (30%, operator) and entities managed by Ridgewood Energy (including Riverstone Holdings and its portfolio company ILX Holdings III) with 30% interest. 

In November 2017, Stone and Talos announced the two companies would merge in a US$1.9 billion stock deal.

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