Item 7.01. Regulation FD Disclosure.
On March 9, 2009, we issued a press release announcing the unwinding of the majority of our 2009 hedge positions and an operational update. 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 information in this report, including Exhibit 99.1, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 ("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 filing. Item 8.01. Other Events.
On March 3, 2009, we unwound all of our crude oil hedges for the period from April 2009 through December 2009, resulting in proceeds of approximately $59 million. On March 6, 2009, we unwound two of our natural gas hedges for the period from April 2009 through December 2009, resulting in proceeds of approximately $54 million. We intend to use a substantial portion of the proceeds to build our cash position and reduce bank borrowings. In addition, we may use some of the proceeds to reduce outstanding public debt and/or repurchase Stone common shares. We also re-hedged a portion of our 2009 volumes and will continue to evaluate hedging opportunities.
The following table provides our updated derivative position as of March 6, 2009:

Zero-Premium Collars Natural Gas Oil Daily Daily Volume Floor Ceiling Volume Floor Ceiling (MMBtus/d) Price Price (Bbls/d) Price Price 2009 20,000 $ 8.00 $ 14.30 Fixed-Price Swaps Natural Gas Oil Daily Daily Volume Swap Volume Swap (MMBtus/d) Price (Bbls/d) Price 2009 (Oct-Dec) 3,000 $ 50.00 2009 (Oct-Dec) 2,000 50.45 2010 20,000 $ 6.97 2,000 63.00 2010 20,000 6.50 2010 10,000 6.50

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Press release dated March 9, 2009, "Stone Energy Corporation Announces Unwinding of 2009 Hedge Positions Resulting in Proceeds of $113 Million and Provides Operational Update."

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