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Pursuant
to Rule 425 under the Securities Act of 1933
and
deemed filed pursuant to Rule 14a-12
under
the Securities Exchange Act of 1934
Subject
Company: Stone Energy Corporation
Commission
File No.: 1-12074
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News
Release
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Energy
Partners, Ltd.
201
St. Charles Avenue, Suite 3400
New
Orleans, Louisiana 70170
(504)
569-1875
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EPL
Provides Update on Drilling Operations
and Schedules
Conference
Call to Discuss Second Quarter Results
Four
Exploratory Successes on Shelf and Onshore
NEW
ORLEANS, July 19, 2006 (BUSINESS WIRE) -- Energy Partners, Ltd. ("EPL")
(NYSE:EPL) today provided an update on drilling operations, including recent
exploratory results and current operations. Among other well updates, the
Company announced four exploratory successes on the Shelf and onshore. For
the
year to date, the Company has drilled eleven discoveries out of fifteen
exploratory tests in the Gulf of Mexico and onshore in the Gulf Coast region,
including two discoveries in the deepwater Gulf of Mexico. The Company also
announced it will host a conference call to review second quarter 2006 results
on Wednesday, August 9, 2006 at 8:30 A.M. central time.
Shelf
At
Eugene
Island 312, the #1 well, drilled to a total depth of 8,110 feet and encountered
approximately 70 feet of apparent high quality natural gas pay in a single
interval. The #1 well, which was a moderate risk, moderate potential well,
is
expected to be on line by mid-year 2007. Hunt
Petroleum (AEC), Inc.
(“Hunt”),
the operator, holds a 60% working interest in the well and EPL holds the
remaining 40%.
The
Company also announced an exploratory success in the South Timbalier 41/42
area
with the South Timbalier 42 #2 well. This well successfully encountered its
intended four development objectives and in addition found two new pay intervals
in that section of the well. This moderate risk, moderate potential well drilled
to a total depth of 19,500 feet and encountered a total of 150 feet of high
quality apparent oil and natural gas pay. The Company said that the well
encountered better than predicted pay intervals in both number and footage,
and
as a result will add new reserves this year. After securing all pay intervals
by
running casing, an attempt to drill deeper to test additional exploratory
potential was aborted due to adverse hole conditions. The next planned
exploratory well in this area, the high potential South Timbalier 42 #3, will
target sands deeper than those tested in the South Timbalier 42 #2. This most
recent well marks the seventh success in seven exploratory tests in the South
Timbalier 41/42 area since the first well was drilled in 2003. Both this new
well and last year’s discovery, the South Timbalier 42 #1, are expected be on
line in the third
quarter
of
2006. EPL, the operator, holds a 60% working interest in the well and Kerr-McGee
Corp. (NYSE:KMG) holds the remaining 40%.
In
the
Greater Bay Marchand area, the SB15#3st well, drilled to a total depth of 11,306
feet and encountered approximately 100 feet of apparent high quality oil pay
in
a single interval. The well, which was a low risk, moderate potential well,
is
expected to be on line later this year. EPL holds a 27% working interest in
the
well.
In
addition, the Company announced the high potential, high risk well at West
Cameron 25 did not encounter hydrocarbons. The well, in which the Company held
a
100% working interest, was drilled to a total depth of 11,373 feet. EPL expects
to recognize approximately $8.6 million in exploration expense in the second
quarter of 2006 attributable to this well.
EPL
currently has exploratory tests underway on the Shelf at East Cameron 109 and
East Cameron 46.
Onshore
Onshore
in
south Louisiana, the Company drilled a successful exploratory
test in the Little Lake area. This low risk, moderate potential well is expected
on line later this year. This well marks the fourteenth exploratory success
of
eighteen tests for the Company since the south Louisiana onshore program began
on the acreage acquired in early 2005.
Current
drilling operations continue at EPL’s high risk, high potential Lakeside
prospect, that is currently at 14,205 feet and progressing to its intended
total
depth.
Richard
A.
Bachmann, EPL’s Chairman and CEO, commented, “We are pleased that our drilling
program continues to be on track in what is proving to be an exciting year
for
us. While we are quickly moving forward with the pending acquisition of Stone
Energy Corporation (NYSE: SGY), which is set to close early in the fourth
quarter, we continue to focus on growth through the drill bit by maintaining
an
active exploratory drilling program in order to deliver value to our
shareholders.”
Second
Quarter 2006 Conference Call
The
Company announced it will host a conference call to review second quarter 2006
results on Wednesday, August 9, 2006 at 8:30 A.M. central time. The Company
will
issue a press release on the same morning before the call covering results
for
the quarter. On the call, management will discuss operational and financial
results and also provide an update on guidance for 2006.
To
participate in the EPL conference call, callers in the United States and Canada
can dial (877) 612-5303 and international callers can dial (706) 634-0487.
The
Conference I.D. for callers is 3313134.
The
call
will be available for replay beginning two hours after the call is completed
through midnight of August 14, 2005. For callers in the United States and
Canada, the toll-free number for the replay is (800) 642-1687. For international
callers the number is (706) 645-9291. The
Conference
I.D. for all callers to access the replay is 3313134.
The
conference call will be webcast live as well as for on-demand listening at
the
Company's web site, www.eplweb.com. Listeners may access the call through the
"Conference Calls" link in the Investor Relations section of the site. The
call
will also be available through the CCBN Investor Network.
Founded
in
1998, EPL is an independent oil and natural gas exploration and production
company based in New Orleans, Louisiana. The Company’s operations are focused
along the U. S. Gulf Coast, both onshore in south Louisiana and offshore in
the
Gulf of Mexico.
Forward
Looking Statements & Additional Information
This
press
release contains forward-looking information regarding EPL and Stone that is
intended to be covered by the safe harbor “forward-looking statements” provided
by the Private Securities Litigation Reform Act of 1995. All statements included
in this press release that address activities, events or developments that
EPL
or Stone expects, believes or anticipates will or may occur in the future are
forward-looking statements. These include statements regarding:
•
completion of the proposed merger,
•
effective integration of the two companies,
•
reserve
and production estimates,
•
oil
and
gas prices,
•
the
impact of derivative positions,
•
production expense estimates,
•
cash
flow estimates,
•
future
financial performance,
•
planned
capital expenditures, and
•
other
matters that are discussed in EPL’s and Stone’s filings with the SEC.
These
statements are based on current expectations and projections about future events
and involve known and unknown risks, uncertainties, and other factors that
may
cause actual results and performance to be materially different from any future
results or performance expressed or implied by these forward-looking statements.
Please refer to EPL’s and Stone’s filings with the SEC, including each company’s
Form 10-K for the year ended December 31, 2005, for a discussion of these risks.
EPL
AND
STONE WILL FILE A JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS WITH
THE
SECURITIES AND EXCHANGE COMMISSION. INVESTORS AND SECURITY HOLDERS ARE URGED
TO
READ CAREFULLY THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES
AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION REGARDING EPL, STONE
AND
THE ACQUISITION. A DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS WILL BE SENT
TO
SECURITY HOLDERS OF EPL
AND
STONE
SEEKING THEIR APPROVAL OF THE ACQUISITION.
The
documents filed with the SEC by EPL may be obtained free of charge from EPL’s
website at www.eplweb.com or by directing a request to: Energy Partners, Ltd.,
201 St. Charles Avenue, Suite 3400, New Orleans, Louisiana 70170, Attn:
Secretary, (504) 569-1875. In addition, the documents filed with the SEC by
Stone may be obtained free of charge from Stone website at www.stoneenergy.com
or by directing a request to: Stone Energy Corporation, 625 E. Kaliste Saloom
Road, Lafayette, Louisiana 70508, Attn: Kenneth Beer, (337) 237-0410. Investors
and security holders are urged to read the joint proxy statement/prospectus
and
the other relevant materials when they become available before making any voting
or investment decision with respect to the proposed acquisition.
EPL,
Stone
and their respective executive officers and directors may be deemed to be
participants in the solicitation of proxies from the stockholders of EPL and
Stone in favor of the acquisition. Information about the executive officers
and
directors of EPL and their direct or indirect interests, by security holdings
or
otherwise, in the acquisition will be set forth in the proxy
statement-prospectus relating to the acquisition when it becomes available.
Information about the executive officers and directors of Stone and their direct
or indirect interests, by security holdings or otherwise, in the acquisition
will be set forth in the proxy statement-prospectus relating to the acquisition
when it becomes available.
Contacts
Investors:
T.J.
Thom
(504-799-4830)
/
Al
Petrie (504-799-1953)
Energy
Partners Ltd.
Media:
Eden
Abrahams / Steve Frankel (212-355-4449)
Joele
Frank, Wilkinson Brimmer Katcher
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