8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

June 20, 2006
Date of report (Date of earliest event reported)

STONE ENERGY CORPORATION

(Exact Name of Registrant as Specified in Charter)

Delaware	1-12074	72-1235413
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

625 E. Kaliste Saloom Road
Lafayette, Louisiana	70508
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (337) 237-0410

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c))

Item 8.01. Other Events.

     On June 20, 2006, we issued a press release announcing that we have exercised our preferential rights to acquire additional working interests in Mississippi Canyon Blocks 108 and 109 in the Gulf of Mexico for approximately $190.5 million, before closing adjustments. The press release is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 8.01.

Item 9.01. Financial Statements and Exhibits.

     (d) Exhibits

99.1 Press release dated June 20, 2006, “Stone Energy Corporation Exercises Preferential Purchase Rights on GOM Field.”

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, Stone Energy Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	STONE ENERGY CORPORATION
Date: June 21, 2006	By:	/s/ J. Kent Pierret
		J. Kent Pierret
		Senior Vice President, Chief Accounting Officer and Treasurer

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EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press release dated June 20, 2006, “Stone Energy Corporation Exercises Preferential Purchase Rights on GOM Field.”

EX-99.1

Exhibit 99.1

STONE ENERGY CORPORATION

Exercises Preferential Purchase Rights on GOM Field

LAFAYETTE, LA            June 20, 2006

     Stone Energy Corporation (NYSE:SGY) today announced that Stone has exercised its preferential rights to acquire additional working interests in Mississippi Canyon Blocks 108 and 109 in the Gulf of Mexico for approximately $190.5 million, before closing adjustments. Subject to the execution of a purchase and sale agreement relating to the proposed acquisition, Stone expects that closing would occur in late June or early in the third quarter. If the proposed acquisition is completed, Stone would have a 100% working interest in Mississippi Canyon Block 109 (up from 33%) and a 24.8% working interest in Mississippi Canyon Block 108 (up from 16.5%), and would become operator of the field. Currently, production from both blocks is shut in awaiting repairs to an oil pipeline that was damaged during Hurricane Katrina. The pipeline transports oil from the Amberjack platform on Mississippi Block 109, and the repair is expected before year-end. Stone intends to finance the proposed acquisition with floating rate debt. If the proposed acquisition is not completed, Stone intends to use the proceeds from this floating rate debt to reduce indebtedness under its credit facility.

     The floating rate debt has not been and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933.

About Stone Energy Corporation

     Stone is an independent oil and gas company headquartered in Lafayette, Louisiana, and is engaged in the acquisition and subsequent exploration, exploitation, development, operation and production of oil and gas properties located in the conventional shelf of the Gulf of Mexico (the “GOM”), deep shelf of the GOM, deep water of the GOM, several basins of the Rocky Mountains, the Williston Basin and Bohai Bay, China. For additional information, please contact Kenneth H. Beer, Senior Vice President and Chief Financial Officer, at 337-521-2210-phone, 337-237-0426-fax or via e-mail at CFO@StoneEnergy.com.

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 and other risk factors as described in Stone’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. 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.