Stone Energy to Increase Notes Offering to $200 Million

Stone Energy Corporation (NYSE: SGY) has agreed to sell $200 million aggregate principal amount of 6 3/4% senior subordinated notes due 2014 in a private placement. This is an increase from the previously announced $150 million offering. 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.

This offering is being made pursuant to Rule 144A and Regulation S under the Securities Act of 1993, as amended (the "Securities Act"). The notes have not been 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.