Filed by Stone Energy Corporation and Basin
                                Exploration, Inc. pursuant to Rule 425 under the
                                Securities Act of 1933 and deemed filed pursuant
                                to Rule 14a-12 of the Securities Act of 1934

                                Stone Energy Commission File No.: 001-12074
                                Basin Exploration Commission File No.: 000-20125
                                Subject Company: Basin Exploration, Inc.

THE FOLLOWING IS A PRESS RELEASE DISSEMINATED BY STONE ENERGY CORPORATION
ON DECEMBER 20, 2000


STONE  ENERGY  CORPORATION
ANNOUNCES  PRODUCTION  TEST ON NARWHAL  PROSPECT AND
FOURTH QUARTER 2000 PRODUCTION ESTIMATES
NYSE--SGY
LAFAYETTE,  LA. December 20, 2000

     Stone Energy  Corporation  announced  today that it has completed  drilling
operations  on the  OCSG-2899  No. D-2 Well on the  Narwhal  Prospect  at Eugene
Island  Block  243.  The well was  drilled to a total  depth of 15,100  feet and
logged  205 feet (MD) of net pay in two  sands.  On  December  20,  2000,  Stone
perforated the deepest productive  interval and tested the well at a gross daily
rate of 7.2  million  cubic  feet of gas and 1,349  barrels of  condensate  on a
16/64th-inch  choke with a flowing tubing pressure of 5,221 pounds.  The well is
expected to begin sales before year-end from Stone's existing A Platform.

         Stone expects to spud a delineation  well, the No. D-3,  before the end
of the year.  This well will drill to a planned depth of 14,616 feet to evaluate
the "O" sand  series in a fault block  updip and  adjacent to the D-2  discovery
well.  Construction is in progress on a four-pile  production platform that will
be set adjacent to existing  facilities on the block. This new platform will add
additional daily  processing  capacity of 70 million cubic feet of gas and 5,000
barrels  of oil to  accommodate  potential  production  associated  with  future
drilling prospects.

         Stone has an  approximate  89% working  interest  and a 70% net revenue
interest in the D-2 and D-3 Wells.

         Excluding any production  from the No. D-2 Well,  Stone  estimates that
its fourth quarter  production volumes will be approximately flat with the third
quarter of 2000. During the fourth quarter, Stone deferred planned recompletions
at  its  South  Pelto  Block  23 and  South  Timbalier  Block  8  fields.  These
recompletions  would have  increased  production  from wells where the producing
rates from existing  completions  have declined.  These existing wells are still
profitable  due to current  commodity  prices.  Stone  continues to seek maximum
commercial  reserve  recovery from its wells as opposed to maximizing  producing
rates.  Based on the revised fourth quarter  production  rates,  Stone estimates
that its average daily production for 2000 will be approximately 13% higher than
1999 daily rates. In addition,  with the expected product price realizations for
the fourth quarter of 2000, the revised production estimates are still projected
to generate record quarterly revenue, net income and cash flow.

         Stone  Energy  Corporation  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.

         For additional  information,  contact James H. Prince,  Chief Financial
Officer   at    337-237-0410-phone,    337-237-0426-fax   or   via   e-mail   at
princejh@stone-energy.com.

         Certain  statements in this press release are  forward-looking  and are
based upon Stone's current belief as to the outcome and timing of future events.
All  statements,   other  than  statements  of  historical  facts  that  address
activities  that Stone  projects,  estimates,  expects,  believes or anticipates
will,  should or may occur in the future including future  production of oil and
gas,  future oil and gas prices,  future capital  expenditures  and drilling and
recompletion of wells are  forward-looking  statements.  Important  factors that
could   cause   actual   results  to  differ   materially   from  those  in  the
forward-looking  statements  herein  include the timing and extent of changes in
commodity  prices for oil and gas,  operating  risks and other  risk  factors as
described in Stone's Annual Report on Form 10-K as filed with the Securities and
Exchange  Commission.  Should one or more of these risks or uncertainties occur,
or should  underlying  assumptions  prove incorrect,  Stone's actual results and
plans  could  differ  materially  from those  expressed  in the  forward-looking
statements.