​American oil and gas corporation reduces its capex guidance

Baku. 4 August. REPORT.AZ/ American oil and gas corporation Stone Energy reduced its capex guidance for 2016 as the loss widened in the second quarter.

Report informs referring to the Offshore Energy Today, in early 2016, Stone’s 2016 capital expenditure budget was authorized at $200 million, excluding rig subsidies or rig stacking expenses that were projected to be approximately $40 million to $50 million.

Capital expenditures for the second quarter of 2016 were approximately $32.7 million, which included $6.0 million of plugging and abandonment expenditures, while second quarter 2015 capital expenditures were approximately $91.1 million.

This updated rig schedule and other cost reduction efforts have decreased Stone’s projected annual capital expenditures, which are now expected to approximate $160 million to $170 million for 2016.

In addition, Stone on Tuesday reported a wider second quarter of 2016 net loss of $195.8 million on oil and gas revenue of $89 million, compared to a net loss of $152.9 million, on oil and gas revenue of $149.5 million in the second quarter of 2015.

The company’s net daily production during the second quarter of 2016 averaged 29.0 thousand barrels of oil equivalent (MBoe) per day (174 million cubic feet of gas equivalent (MMcfe) per day), compared to net daily production of 48.6 MBoe (291 MMcfe) per day in the second quarter of 2015.

Production guidance for the third quarter of 2016 is estimated at 35 – 37 MBoe per day (210 – 222 MMcfe per day). The company’s updated production guidance for 2016 is 33 – 35 MBoe (198 – 210 MMcfe) per day.