Stone Energy Corp. grew its estimated proved reserves last year by 15% and said Monday it expects to spend about half of its 2011 budget in the Gulf of Mexico (GOM).

The company said estimated year-end 2010 proved reserves were 474 Bcfe compared with 411 Bcfe at year-end 2009. From all sources Stone replaced 182% of production last year. The change from year to year included production of 76 Bcfe, drilling additions/extensions of 99 Bcfe, upward revisions of 33 Bcfe and acquisitions of 7 Bcfe.

The present value of the estimated future net cash flows from estimated proved reserves before income taxes, using a 10% discount rate (PV10), was approximately $1.2 billion using 12-month average prices of $75.96/bbl of oil and $4.35/MMBtu of gas.

The estimated year-end 2010 proved reserves of 474 Bcfe included proved developed (PD) reserves of 325 Bcfe (split 46% oil, 54% gas) and proved undeveloped (PUD) reserves of 149 Bcfe (split 33% oil and 67% gas). In addition, there was 236 Bcfe of estimated probable reserves and 195 Bcfe of estimated possible reserves at year-end 2010.

The company's capital expenditure budget for 2011 is $425 million. About 50-55% of the budget is expected to be spent on the GOM shelf, including drilling, recompletions, facilities and abandonment. About 25% is projected to be spent in Appalachia, including drilling, facilities and minor land acquisitions. The remaining amount is budgeted for exploration projects in the Rocky Mountain region, the deep shelf, the GOM deepwater and other new venture opportunities.

Production for 2011 is expected to remain stable in the 200-220 MMcfe/d range (about 50% oil and 50% gas), the company said.

©Copyright 2011 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.