Forward-Looking Statements. This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Certain statements in this presentation are forward-looking and are based upon the current belief of Stone Energy Corporation ("Stone") as to the outcome and timing of future events. All statements, other than statements of historicalfacts, that address activities that Stone plans, expects, believes, projects, estimates or anticipates will, should or may occur in the future, including future production of oil and gas, future capitalexpenditures and drilling of wells and future financialor operating results are forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include the timing and extent of changes in commodity prices for oil and gas, operating risks, liquidity and other risk factors as described in Stone's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission ("SEC"). Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, Stone's actualresults and plans could differ materially from those expressed in the forward-looking statements.
Reserves. The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actualproduction or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use certain terms such as "probable" and "possible" reserves and "resources" or other descriptions of volumes of reserves or resources potentially recoverable through additionaldrilling or recovery techniques that the SEC's guidelines strictly prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by Stone. Resources refer to Stone's internalestimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additionaldrilling or recovery techniques. Resources do not constitute reserves within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System and do not include any proved reserves. Actual quantities that may be ultimately recovered from Stone's interests will differ substantially. Factors affecting ultimate recovery include the scope of our ongoing drilling program, which will be directly affected by the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals and other factors; and actualdrilling results, including geological and mechanicalfactors affecting recovery rates. Investors are urged to consider closely the disclosure in our Annual Report on Form 10-K, available free of charge on our internet site (http://www.stoneenergy.com). You can also obtain this form from the SEC on the SEC's internet site (http://www.sec.gov) or by calling 1-800-SEC-0330. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities of Stone.