What: Shares of Stone Energy Corporation (NYSE:SGY) had a wild day today, falling along with oil prices this morning only to recover and jump as much as 11% after management gave a production update.
So what: Midday, management said that the Cordona #6 development well in the Mississippi Canyon block 29 has been moving forward ahead of schedule and below budget.
Better yet, production for the quarter is expected to be higher than previously thought. Today's press release said, "Production for the second quarter is expected to be at or above the high end of the previous guidance range of 246-258 Mmcfe per day."
Now what: There hasn't been a lot of good news coming out of energy stocks recently, but this production surprise and positive drilling announcement has investors excited today. It should also lead to better-than-expected results for the second quarter, for which analysts estimate that Stone Energy lost $0.11 per share. It's too early to be expecting a profit, but if positive news keeps flowing in, the company could creep closer to profitability faster than anyone expected.