Stone Energy Corporation has entered into an agreement to contract the ENSCO 8503 dynamically positioned deep water drilling rig for Stone's multi-year deep water drilling program in the Gulf of Mexico. The primary contract term is for 30 months and is expected to commence during the second quarter of 2015 at a rate of approximately $350,000 per day.
The contract permits Stone to exercise options to extend the term up to an additional 12 months. Subject to notification no later than March 31, 2015, Stone may reduce the 30 month primary term contract by up to six months. The ENSCO 8503 deep water drilling rig, which will be modified to include mooring capabilities prior to the commencement of the contract, can reach a maximum drill depth of 35,000 feet in up to 8,500 feet of water and holds the record for the deepest well drilled in the Gulf of Mexico.