Filed by Stone Energy Corporation and Basin
Exploration, Inc. pursuant to Rule 425 under the
Securities Act of 1933 and deemed filed pursuant
to Rule 14a-12 of the Securities Act of 1934
Stone Energy Commission File No.: 001-12074
Basin Exploration Commission File No.: 000-20125
Subject Company: Basin Exploration, Inc.
THE FOLLOWING IS A PRESS RELEASE DISSEMINATED BY STONE ENERGY CORPORATION
ON DECEMBER 20, 2000
STONE ENERGY CORPORATION
ANNOUNCES PRODUCTION TEST ON NARWHAL PROSPECT AND
FOURTH QUARTER 2000 PRODUCTION ESTIMATES
NYSE--SGY
LAFAYETTE, LA. December 20, 2000
Stone Energy Corporation announced today that it has completed drilling
operations on the OCSG-2899 No. D-2 Well on the Narwhal Prospect at Eugene
Island Block 243. The well was drilled to a total depth of 15,100 feet and
logged 205 feet (MD) of net pay in two sands. On December 20, 2000, Stone
perforated the deepest productive interval and tested the well at a gross daily
rate of 7.2 million cubic feet of gas and 1,349 barrels of condensate on a
16/64th-inch choke with a flowing tubing pressure of 5,221 pounds. The well is
expected to begin sales before year-end from Stone's existing A Platform.
Stone expects to spud a delineation well, the No. D-3, before the end
of the year. This well will drill to a planned depth of 14,616 feet to evaluate
the "O" sand series in a fault block updip and adjacent to the D-2 discovery
well. Construction is in progress on a four-pile production platform that will
be set adjacent to existing facilities on the block. This new platform will add
additional daily processing capacity of 70 million cubic feet of gas and 5,000
barrels of oil to accommodate potential production associated with future
drilling prospects.
Stone has an approximate 89% working interest and a 70% net revenue
interest in the D-2 and D-3 Wells.
Excluding any production from the No. D-2 Well, Stone estimates that
its fourth quarter production volumes will be approximately flat with the third
quarter of 2000. During the fourth quarter, Stone deferred planned recompletions
at its South Pelto Block 23 and South Timbalier Block 8 fields. These
recompletions would have increased production from wells where the producing
rates from existing completions have declined. These existing wells are still
profitable due to current commodity prices. Stone continues to seek maximum
commercial reserve recovery from its wells as opposed to maximizing producing
rates. Based on the revised fourth quarter production rates, Stone estimates
that its average daily production for 2000 will be approximately 13% higher than
1999 daily rates. In addition, with the expected product price realizations for
the fourth quarter of 2000, the revised production estimates are still projected
to generate record quarterly revenue, net income and cash flow.
Stone Energy Corporation is an independent oil and gas company
headquartered in Lafayette, Louisiana, and is engaged in the acquisition,
exploitation and operation of oil and gas properties located in the Gulf Coast
Basin.
For additional information, contact James H. Prince, Chief Financial
Officer at 337-237-0410-phone, 337-237-0426-fax or via e-mail at
[email protected].
Certain statements in this press release are forward-looking and are
based upon Stone's current belief as to the outcome and timing of future events.
All statements, other than statements of historical facts that address
activities that Stone projects, estimates, expects, believes or anticipates
will, should or may occur in the future including future production of oil and
gas, future oil and gas prices, future capital expenditures and drilling and
recompletion of wells are forward-looking statements. Important factors that
could cause actual results to differ materially from those in the
forward-looking statements herein include the timing and extent of changes in
commodity prices for oil and gas, operating risks and other risk factors as
described in Stone's Annual Report on Form 10-K as filed with the Securities and
Exchange Commission. Should one or more of these risks or uncertainties occur,
or should underlying assumptions prove incorrect, Stone's actual results and
plans could differ materially from those expressed in the forward-looking
statements.
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