The remainder of the capital budget is focused on Onshore Exploration projects and new venture opportunities. This includes funds for continued non-operated development drilling in the Eagle Ford Shale formation and other new venture opportunities.
Stone expects average net daily production for 2013 to be relatively flat with 2012 production, or in the range of 41-44,000 boe per day, or 245–265 MMcfe per day. According to our 3-year plan, projected production in 2014 and 2015 is expected to grow, exceeding 50,000 boe (or 300 MMcfe) per day in 2015 as longer-term projects from the Deep Water area are developed. The 2013 production is estimated to be approximately 50%-52% natural gas and 50%-48% crude oil/natural gas liquids (NGLs) on a btu equivalent basis.
The 2013 capital program is expected to be funded by projected cash flow and cash on hand. Stone's cash position is currently over $200 million after the recent issuance of the $300 million Senior Notes due 2022, and after the completion of the tender offer, redemption and retirement of all the $200 million Senior Subordinated Notes due 2014. The borrowing base of $400 million under our bank credit facility remains undrawn, with $379 million available after accounting for outstanding letters of credit of $21 million.
Stone Energy is an independent oil and natural gas exploration and production company headquartered in Lafayette, Louisiana with additional offices in New Orleans, Houston and Morgantown, West Virginia. Our business strategy is to leverage cash flow generated from existing assets to maintain relatively stable GOM shelf oil production, profitably grow gas reserves and production in price-advantaged basins such as Appalachia and the Gulf Coast Basin, and profitably grow oil reserves and production in material impact areas such as the deep water GOM and onshore oil. For additional information, contact Kenneth H. Beer, Chief Financial Officer, at 337-521-2210 phone, 337-521-9880 fax or via e-mail at CFO@StoneEnergy.com .Guidance Disclosure Guidance is subject to all the cautionary statements and limitations described below and under the caption "Forward Looking Statements". Estimates for Stone's future production volumes are based on assumptions of capital expenditure levels and the assumption that market demand and prices for oil and gas will continue at levels that allow for economic production of these products. The production, transportation and marketing of oil and gas are subject to disruption due to transportation and processing availability, mechanical failure, human error, hurricanes and numerous other factors. Stone's estimates are based on certain other assumptions, such as well performance, which may vary significantly from those assumed. Lease operating expenses, which include major maintenance costs, vary in response to changes in prices of services and materials used in the operation of our properties and the amount of maintenance activity required.