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Stone Energy Corporation Announces 2012 Reserve Growth of 28%, Production Replacement of 288%

  Stone Energy Corporation Announces 2012 Reserve Growth of 28%, Production
                             Replacement of 288%

PR Newswire

LAFAYETTE, La., Jan. 15, 2013

LAFAYETTE, La., Jan. 15, 2013 /PRNewswire/ -- Stone Energy Corporation (NYSE:
SGY) today announced its estimated year-end 2012 proved reserves were 129
Mmboe (million barrel equivalents) or 773 Bcfe (billion cubic feet of natural
gas equivalent), as compared with 100 Mmboe or 602 Bcfe at year-end 2011,
representing a 28% increase in its estimated proved reserves. From all
sources, Stone replaced approximately 288% of production in 2012. The
estimated proved reserves were 35% oil, 14% natural gas liquids (NGLs) and 51%
gas on an equivalent basis. The changes from 2011 year-end estimated proved
reserves to 2012 year-end estimated proved reserves included production of
approximately 15 Mmboe or 91 Bcfe, drilling additions/extensions of 30 Mmboe
or 181 Bcfe, net upward revisions of 7 Mmboe or 44 Bcfe and net acquisitions
of 6 Mmboe or 37 Bcfe.

The present value of the estimated future net cash flows from estimated proved
reserves before income taxes, using a 10% discount rate (PV10), was
approximately $2.0 billion using 12 month average prices after differentials
of $101.20 per barrel of oil, $38.23 per barrel of NGLs and $2.68 per Mmbtu of
gas. The estimated year-end 2012 proved reserves included proved developed
(PD) reserves of 73 Mmboe or 437 Bcfe (split 40% oil, 12% NGLs, 48% gas) and
proved undeveloped (PUD) reserves of 56 Mmboe or 337 Bcfe (split 28% oil, 17%
NGLs, 55% gas). In addition, there were 59 Mmboe or 356 Bcfe of estimated
probable reserves and 167 Mmboe or 1.0 Tcfe of estimated possible reserves at
year-end 2012. All of Stone's 2012 year-end estimated proved, probable and
possible reserves were independently engineered by Netherland Sewell &
Associates.

Chairman, President and Chief Executive Officer David Welch stated, "We are
very pleased with our third consecutive year of reserve growth in 2012. Our
strategy of investing in price advantaged natural gas and material oil
projects is paying off in this low natural gas price environment. Our programs
in Appalachia, deep water and deep gas all generated increased reserve volumes
for the year. Our reserves mix is now 44% Appalachia, 34% Deep Water, and 22%
Conventional Shelf/Deep Gas, confirming our diversification strategy. Our
reserve life has grown from 5.2 years in 2009 to approximately 8.5 years
currently. Stone is a very different company from several years ago in its
asset balance and its exciting opportunity set."

Production guidance for the fourth quarter of 2012 of 42,500 - 45,000 Boe per
day (255-270 Mmcfe per day) is confirmed towards the upper end of the range.
Production guidance for 2013 remains at 41,000 - 44,000 Boe per day (245-265
Mmcfe per day) as projected production from the La Cantera #3 well in the
third quarter is expected to offset lost production during the first quarter
from Stone's Mary field in Appalachia. The Mary field has been shut-in since
late December due to a third party pipeline repair issue. The pipeline impacts
approximately 50 Mmcfe per day and is expected to be repaired before the end
of the month.

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.

Forward Looking Statements

Certain statements in this press release are forward-looking and are based
upon Stone's current belief as to the outcome and timing of future events. All
statements, other than statements of historical facts, 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 capital expenditures and drilling of wells and future financial or
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 risks, political
and regulatory developments and legislation, including developments and
legislation relating to our operations in the Gulf of Mexico and Appalachia,
and other risk factors and known trends and uncertainties as described in
Stone's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed
with the SEC. Should one or more of these risks or uncertainties occur, or
should underlying assumptions prove incorrect, Stone's actual results and
plans could differ materially from those expressed in the forward-looking
statements.

Non-GAAP Financial Measure

PV-10 is the estimated future net cash flows fromestimated proved reserves
discounted at an annual rate of 10 percent before giving effect to income
taxes. Standardized Measure is the after-tax estimated future cash flows
fromestimated proved reserves discounted at an annual rate of 10 percent,
determined in accordance with GAAP. Stone uses PV-10 as one measure of the
value of its estimated proved reserves and to compare relative values of
proved reserves among exploration and production companies without regard to
income taxes. Stone believes that securities analysts and rating agencies use
PV-10 in similar ways. Stone's management believes PV-10 is a useful measure
for comparison of proved reserve values among companies because, unlike
Standardized Measure, it excludes future income taxes that often depend
principally on the characteristics of the owner of the reserves rather than on
the nature, location and quality of the reserves themselves. Stone cannot
reconcile PV-10 to Standardized Measure at this time becausefinal income tax
information for 2012 is notyet available.

SOURCE Stone Energy Corporation

Website: www.stoneenergy.com