Stone Energy cooperation has paid much attention to specific deep sea drilling expeditions. The Derbio Well as well as the Mt Providence Well have recently been searched out as part of their programs. The CEO believes that this is the major reason behind the increased cash flows for the company. Their investors get to earn a lot from this success. These exploits come after the merger with Talos Energy that is based in Houston, TX. The merged entity was announced in November 2017 and it will be incharge of all off shore drilling and exploration activities. The board of directors of the two firms agreed on Talos Energy Inc as the banner for the new entity.
In 2017 there was a notable decrease on what was spent on the General, Salaries and Administrative expenses. $54.7 million was used compared to $58.9 million that was spent by the close of 2016. This registered a decrease of 2.55%. This was mainly attributed to the employee reduction as a result of the restructuring that the company had in 2017. The Net Derivative expenses on the other hand were on the rise. Having registered $0.8 million in 2016, they spent well up to $15.2 million in 2017. The 2017-2019 comodity derivative of the company was designated as cash flow hedges owing to a new policy by the firm. This resulted in the exponential growth of the expenses.The Amortization, Depletion and Depreciation costs added up to $133.8 million.The Gathering, processing and transport departments spent the least through the year. Their expenses totalled to $11 million.
The firm has $263.5 million as cash at hand. $87.4 million remains untouched in the circling credit line. Restrictive accounts hold close to $18.7 million that is used to take care of near term operating expenses.
The exploration of the Mt Providence Deep Water Well has unearthed prime quality oil that is close to 153 feet deep. This is far beyond what the explorerers had estimated when they set out into the sea. Natural gas was found in abundance in the Rampart well project. The well had a depth of 107 feet according to reports.