UPDATE 1-Stone Energy to offer additional shares to pay debt

Tue Jun 9, 2009 4:48pm EDT

* To offer 6 mln shares

* Shares down 6.5 pct after market

June 9 (Reuters) - Independent oil and gas company Stone Energy Corp (SGY.N) said it has commenced a public offering of 6 million shares of its common stock, the proceeds of which it may use to reduce debt under its credit facility.

The company added the underwriters will have a 30-day option to buy up to 0.9 million additional shares.

Shares of the company closed at $8.37 Tuesday on Nasdaq. It fell 6.5 percent to $7.82 after market close.

For the alerts, please double click [ID:nWNAB8126] (Reporting by Arup Roychoudhury in Bangalore; Editing by Jarshad Kakkrakandy) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))

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