EXHIBIT 99.2


SOUTHERN MINERAL CORPORATION
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NEWS RELEASE                               CONTACT:
                                           Michael E. Luttrell
                                           Vice President-Finance
                                           and CFO
                                           (713) 658-9444

July 25, 2000


       SOUTHERN MINERAL ANNOUNCES CONFIRMATION OF PLAN OF REORGANIZATION

Houston, Texas - Southern Mineral Corporation (OTC Bulletin Board: SMINQ.OB) and
certain of its subsidiaries today announced that on July 21, 2000 the United
States Bankruptcy Court for the Southern District of Texas, Victoria Division
entered the order confirming their Second Amended Plan of Reorganization filed
May 2, 2000, as Amended, ("Plan"). The Plan is expected to become effective on
August 1, 2000.

Southern Mineral Corporation is an oil and gas acquisition, exploration and
production company that owns interests in oil and gas properties located along
the Texas Gulf Coast, Canada and Ecuador. The Company's principal assets include
interests in the Big Escambia Creek field in Alabama and the Pine Creek field in
Alberta, Canada. The Company's common stock is quoted on the OTC Bulletin Board
under the trading symbol "SMINQ.OB".

This news release contains forward-looking statements within the meaning of the
Securities Litigation Reform Act. The projections and statements reflect the
Company's current views with respect to future events and financial performance
that involve risks and uncertainties including price volatility, production
levels, drilling results, capital availability, successful negotiations with
other parties, evaluation of opportunities, operational and other risks,
uncertainties and factors described from time to time in the Company's publicly
available SEC reports.  Actual results may differ materially from those
projected.