Item 7.01. Regulation FD Disclosure.
On December 17, 2008, we issued a press release which announced our 2009 capital budget, updated production and reserve guidance, a possible year end full cost ceiling test write-down and our redetermined borrowing base. 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, including Exhibit 99.1, 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 8.01. Other Events.
In early December 2008, we received notice from our bank group that the borrowing base under our bank credit facility has been reduced from $700 million to $625 million. The borrowing base under the credit facility is redetermined periodically based on the bank group's evaluation of the estimated proved oil and gas reserves of Stone and its direct and material indirect subsidiaries. Borrowings outstanding at December 17, 2008 under the facility totaled $425 million, and letters of credit totaling $46.1 million had been issued under the facility, leaving $153.9 million of borrowings available under the credit facility.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press release dated December17, 2008, "Stone Energy Corporation Announces 2009 Capital Budget, Updated Production and Reserve Guidance, Possible Year End Full Cost Ceiling Test Write-down and Affirmed Borrowing Base."

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