Stone Energy Corporation (SGY) provided an update on its oil and gas operations in the Appalachian Basin for the fourth quarter of 2010. The company has 75,000 net acres under lease and is active in developing the Marcellus Shale formation.
Stone Energy has drilled a total of 16 wells into the Marcellus Shale since April 2010, with 12 in West Virginia and 4 in Pennsylvania. The company has completed 10 of these wells and reported initial production rates ranging from 3 million to 10 million cubic feet per day.
Stone Energy is working with Caiman Energy to arrange gathering infrastructure and expects this to be operational by the third quarter of 2011. The company plans to operate one rig in 2011 and drill between 16 and 18 wells.