Stone Energy, a Gulf of Mexico focused oil and natural gas exploration and production company, has received a formal notice of non-compliance with the New York Stock Exchange (NYSE) market capitalization listing standard.
According to the company’s statement on Friday, Stone Energy was notified on May 17, 2016, by the NYSE that the company’s average global market capitalization has been less than $50 million over a consecutive 30 trading-day period at the same time that its stockholders’ equity is less than $50 million, which is non-compliant with Section 802.01B of the NYSE Listed Company Manual.
Under the NYSE’s rules, Stone Energy has 10 business days from receipt of the notification to submit a letter confirming that the company will submit a plan that demonstrates the company’s ability to regain compliance within 18 months.
Thereafter, the company will have 45 calendar days following its confirmation letter to the NYSE to submit such plan.
Stone Energy recently resolved an issue with the U.S. Bureau of Ocean Energy Management (BOEM) that sought financial assurances related to Stone’s abandonment obligations in the Gulf of Mexico. Namely, BOEM requires all operators in federal waters to provide financial assurances sufficient to cover the estimated cost of plugging and abandoning wells and decommissioning offshore facilities.