Stone Energy Corp., Lafayette, La., (NYSE: SGY) and Newfield Exploration Co., Houston, (NYSE: NFX) reports a discovery on their deepwater Pyrenees prospect on Garden Banks Block 293 in the Gulf of Mexico.

The well encountered approximately 125 feet of net hydrocarbon pay in three zones. Stone has a 15% working interest in the prospect and a small overriding royalty, and Newfield is operator with a 40% working interest. The remaining interest is held by three private companies, Ridgewood Energy Corp. (15%), Arena Exploration (15%) and Deep Gulf Energy (15%).

The Pyrenees well has been temporarily abandoned while the partnership is working on field development plans. Delineation drilling on the Pyrenees discovery is planned for the second half of 2009.

Stone president and chief executive David Welch says, “This is an important exploration well for Stone Energy. Pyrenees is the first prospect for Stone's new deepwater exploration team, which is headed by Rich Smith. We hope for Pyrenees to be the first of a number of deepwater successes for Stone.”

Stone senior vice president, exploration and business development, Rich Smith says, “Stone seized the opportunity to participate in the large Central Gulf of Mexico lease sales in October 2007 and March 2008. During those sales, the company increased the number of its deepwater blocks from 10 to 64 blocks. Stone continues to evaluate prospects on our leasehold as well as look for other opportunities. We expect to participate in several other deepwater exploration wells in 2010 at an appropriate working interest.”

Stone has oil and gas properties in the Gulf of Mexico.

Newfield has operations in the Anadarko and Arkoma basins of the Midcontinent, the Rockies, onshore Texas and the Gulf of Mexico and international operations in Malaysia and China.