EXHIBIT 99 
  
  
                            FOR IMMEDIATE RELEASE

                         STONE ENERGY CORPORATION ADOPTS
                  STOCKHOLDER RIGHTS PLAN AND BYLAW AMENDMENTS

                                                     Contact:
  October 15, 1998                                          Michael L. Finch
Lafayette, Louisiana                                     Chief Financial Officer
      NYSE:SGY                                               (318)237-0410

                  Stone Energy  Corporation  ("the Company")  announced that its
Board of  Directors  (the  "Board")  has adopted a  stockholder  rights plan and
certain bylaw  amendments which are designed to improve the ability of the Board
to protect and  advance  the  interests  of its  stockholders  in the event of a
proposed takeover of the Company.  The rights will be issued on October 26, 1998
to stockholders of record on that date, and will expire on September 30, 2008.

                  The plan  provides  for the  issuance  of one  right  for each
outstanding  share of the  Company's  common  stock.  The  rights  would  become
exercisable  only if a person or group (the "acquiring  party")  acquires 15% or
more of the Company's outstanding voting stock or announces a tender or exchange
offer that would  result in  ownership  of 15% or more of its voting  stock.  In
those circumstances,  each right would entitle holders, other than the acquiring
party,  to purchase  shares of the  Company's  common stock for a price equal to
one-half of their market value. The Board may amend the plan at any time and may
elect  to  redeem  the  rights  prior to the  acquisition  of 15% or more of the
Company's stock by an acquiring party.

                  The  plan  includes  other  customary   provisions  which  are
intended to discourage an acquiring  party from seeking  control by other means,
such as through a merger  transaction.  In addition to the adoption of the plan,
the Board approved certain  amendments to the Company's bylaws to give the Board
more control in the event of a proposed takeover. The amendments include advance
notice for  stockholder  proposals  and director  nominees,  limitations  on the
calling of special  meetings and an 80% voting  requirement for the amendment of
certain bylaws. The bylaw amendments were effective as of October 9, 1998.

                  The  stockholder  rights plan is not being adopted in response
to any pending  takeover threat to the Company,  nor is it intended to prevent a
takeover  on terms  that are fair  and in the best  interests  of the  Company's
stockholders.  Since the  rights  may be  redeemed  by the Board  under  certain
circumstances,  their  existence  should not interfere  with any merger or other
business  combination approved by the Board. The issuance of the rights does not
in any way diminish the financial  strength of the Company or interfere with its
business  plans.  The  issuance of the rights has no dilutive  effect,  will not
affect reported earnings per share, and will not change the way its common stock
is currently traded.

                  Stone   Energy  is  an   independent   oil  and  gas   company
headquartered  in  Lafayette,  Louisiana,  and is  engaged  in the  acquisition,
exploitation  and operation of oil and gas properties  located in the Gulf Coast
Basin.


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