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                                                                      EXHIBIT 99



                                                                        CONTACT:
                                                                   James H Price
                                                          Vice President-Finance
                                                                  (713) 658-9444


December 23, 1996


           SOUTHERN MINERAL REPORTS PRIVATE PLACEMENT OF COMMON STOCK



         HOUSTON-- Southern Mineral Corporation (NASDAQ:SMIN) today announced
the private placement of 2,500,000 shares of the Company's common stock at
$4.50 per share to institutional investors.  Immediately following closing, the
Company will register the shares in a shelf registration to be filed with the
Securities and Exchange Commission.  Proceeds from the offering of
approximately $10,600,000, after related expenses, will reduce bank debt, fund
the cost of future exploration and development projects and provide additional
working capital for general corporate purposes.  Morgan Keegan & Company, Inc.
acted as placement agent for the Company in the issuance of the shares.

         "This placement is a major step for Southern Mineral Corporation,"
stated Steven H. Mikel, President.  "We are positioning the Company to begin
1997 on strong financial footing to pursue acquisitions as well as exploration
and development.  This is another step in our plan to create market awareness
of the Company, and we are pleased to have added over a dozen new institutional
shareholders to our existing shareholder base."

         Southern Mineral Corporation is an oil and gas acquisition,
exploration and production company that owns interests in oil and gas
properties located along the Gulf Coast, the Mid-continent and in Canada.  The
Company is listed on the NASDAQ SmallCap Market under the symbol SMIN.