Stone Energy Announces Offering of Senior Subordinated Notes

Stone Energy Corporation (NYSE: SGY) intends to commence a private placement offering of approximately $150 million aggregate principal amount of senior subordinated notes due 2014. The interest rate and offering price are to be determined by negotiations between Stone and the initial purchaser of the notes. Proceeds of the offering are expected to be used to repay borrowings under Stone's bank credit facility. Stone expects the offering to close on or about December 15, 2004.

The offering will be made pursuant to Rule 144A Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The private offering, which is subject to market and other conditions, will be made only to qualified institutional buyers. The notes to be offered will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy the notes nor shall there be any sale of the notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.