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

December 11, 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 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

     On December 11, 2006, Craig L. Glassinger resigned from his position of Executive Vice President — Business Development effective December 31, 2006. Pursuant to our Executive Change of Control and Severance Plan, Mr. Glassinger will be receiving within thirty days of December 31, 2006 a lump sum cash payment equal to his Annual Pay and 100% of his bonus opportunity for 2006. In addition to amounts paid pursuant to the Plan, he will receive a cash payment of $168,039.

Item 7.01. Regulation FD Disclosure.

     On December 13, 2006, we issued a press release announcing that our Board of Directors has approved and endorsed a strategic plan to re-focus on our Gulf of Mexico shelf exploitation properties. As part of this strategy, we expect to divest selected properties in the Rocky Mountains and in the Gulf of Mexico/Gulf Coast. We anticipate that the proceeds from the planned asset sales would be used to materially reduce our debt level. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 7.01.

     In accordance with General Instruction B.2 of Form 8-K, the foregoing information, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press release dated December 13, 2006, “Stone Energy Corporation Announces Divestiture Program, Debt Reduction Plans.”

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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: December 14, 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 December 13, 2006, “Stone Energy Corporation Announces Divestiture Program, Debt Reduction Plans.”

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EX-99.1

Exhibit 99.1

STONE ENERGY CORPORATION

Announces Divestiture Program, Debt Reduction Plans

LAFAYETTE, LA. December 13, 2006

     Stone Energy Corporation (NYSE: SGY) announced that its Board of Directors has approved and endorsed a strategic plan to re-focus on its Gulf of Mexico shelf exploitation properties. As part of this strategy, Stone expects to divest selected properties in the Rocky Mountains and in the Gulf of Mexico/Gulf Coast. Stone anticipates that the proceeds from the planned asset sales would be used to materially reduce its debt level. Stone expects the divestiture program to be completed in the second quarter of 2007. Additionally, Stone expects to reduce its exploration exposure in 2007, concentrating on its lower risk exploitation projects. The Board has also determined that it would not actively seek a merger partner at this time.

     Chief Executive Officer David Welch commented, “After fifteen months in which Stone has endured significant external and internal distractions, the Board has elected to focus a majority of its capital on Stone’s Gulf of Mexico exploitation projects as its near term strategy. These projects have historically provided high production rates and a quick payback. We expect to limit our exploration spending to a smaller percentage of our capital program in 2007, with most of the exposure being tied to our exploration venture in Bohai Bay, China.”

     Chief Financial Officer Kenneth Beer stated, “The realizations from the planned asset sales should significantly improve our balance sheet. We have a multi-year inventory of Gulf of Mexico exploitation projects, and will target our program to generate excess cash flow for future debt reduction, acquisitions, and/or stock repurchases.”

     Stone Energy is an independent oil and natural gas company headquartered in Lafayette, Louisiana, and is engaged in the acquisition and subsequent exploration, development, operation and production of oil and gas properties located in the conventional shelf of the Gulf of Mexico, the deep shelf of the Gulf of Mexico, the deepwater of the Gulf of Mexico, the Rocky Mountain region and the Williston Basin. Stone is also engaged in an exploratory joint venture in Bohai Bay, China. For additional information, contact Kenneth H. Beer, Chief Financial Officer at 337-237-0410-phone, 337-237-0426-fax or via e-mail at CFO@StoneEnergy.com.

     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.