Stone Energy Corp. issued the company’s official capital budget for oil and gas operations in 2011. The budget was recently approved by the Board of Directors of Stone Energy.
Stone Energy Corp. has allocated $425 million in capital for 2011 oil and gas operations. This amount is flat with the company’s 2010 expenditures.
Stone Energy Corp. said that approximately 50% to 55% of the capital budget will be spent in the Gulf of Mexico. The company is active in developing the Continental shelf area of this region, and will spend the money on drilling, facilities to enable production and other capital expenses.
Stone Energy Corp. said that approximately 25% of the 2011 capital budget will be spent in the Appalachian region in the United States. The company is developing the Marcellus Shale and several other formations in this area. The balance of the capital spending will be used for drilling exploratory wells in the Rocky Mountain area.
Stone Energy Corp. estimates that this level of capital spending in 2011 will keep the company’s production stable next year, at between 200 million and 220 million cubic feet of natural gas equivalents per day.
For more information on the company, go to www.stoneenergy.com