LAFAYETTE, La. (AFX) - Oil and natural gas company Stone Energy Corp. said Tuesday it plans to buy additional stakes in two Gulf of Mexico blocks for $190.5 million.
Stone said it expects the deal to close in late June or early in the third quarter. The acquisition would give the company a 100 percent working interest in Mississippi Canyon Block 109, up from 33 percent, and a 25 percent working interest in Mississippi Canyon Block 108, up from 17 percent. Stone also would become operator of the field.
Production at the two blocks is currently shut in, awaiting repairs to an oil pipeline damaged during Hurricane Katrina, the company said. Repairs are expected before the end of the year.
Stone said it plans to finance the deal with floating rate debt. If the purchase falls through, Stone plans to use cash raised from the floating rate debt to reduce borrowings under its credit facility.
The company's stock fell 51 cents to close at $45.49 on the New York Stock Exchange.
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