A parameter-dependent Riccati equation approach is proposed to design and analyze the stability properties of an output feedback adaptive control law design. The adaptive controller is intended to augment an existing fixed-gain observer-based output feedback control law. Although the formulation is in the setting of model reference adaptive control, the realization of the adaptive controller does not require implementing the reference model. In this regard, the increased complexity of implementing the adaptive controller, above that of a fixed-gain control law, is less than that of other methods. The error signals are shown to be uniformly ultimately bounded, and an estimate for the ultimate bound is provided. The issue of sensor noise is addressed by introducing an error filter. The control design process and the theoretical results are illustrated using a model for wing rock dynamics.