Method and apparatus are presented for perforating a subterranean formation so as to establish fluid communication between the formation and a wellbore, the wellbore having casing cemented therein, the casing having a cement sheath therearound. The casing is perforated with a mechanical perforator and thereafter a propellant material is ignited within the casing thereby perforating the cement sheath. The formation may thereafter be stimulated with an acid stimulator. The mechanical perforator may include use of a toothed wheel, or a needle-punch perforator. The propellant may be deployed in a sleeve and may comprise an abrasive material.