Stone Energy reported that its Board of Directors has authorized a 2013 capital expenditure budget of $650 million, which excludes acquisitions and capitalized SG&A and interest. The budget is spread across Stone's major areas of investment with approximately 29% allocated to Deep Water, 8% allocated to Deep Gas projects, 27% allocated to the GOM conventional shelf, 33% allocated to the Marcellus shale and 3% allocated to Onshore Exploration projects. The allocation of capital across the various areas is subject to change based on several factors including permitting times, rig availability, non-operator decisions, farm-in opportunities and commodity pricing.

The Deep Water capital budget is focused on exploration drilling, preparation work to accommodate a rig at the Pompano platform, long lead-time items for future operated drill wells, template work for sub-sea tie backs to the Pompano platform and lease acquisition. Stone expects to participate in 2-4 non-operated exploration wells for the year. Approximately $80 million is projected to be spent on long lead-time items for operated deep water drilling and template tie-back expenditures for the Pompano platform.

Tags: Stone Energy Corporation