Energy XXI Announces Subsidiary's Cash Tender Offer For Its 10% Senior Notes Due 2013

HOUSTON, Feb. 10, 2011 (GLOBE NEWSWIRE) -- Energy XXI (Bermuda) Limited ("Energy XXI") (Nasdaq:EXXI) (LSE:EXXI) today announced an offer by its wholly owned subsidiary, Energy XXI Gulf Coast, Inc., to purchase for cash any and all of such subsidiary's 10% Senior Notes due 2013. Energy XXI and each of Energy XXI Gulf Coast Inc.'s subsidiaries has unconditionally guaranteed the obligations of Energy XXI Gulf Coast, Inc. under the notes.

The total consideration for the notes tendered and accepted for purchase pursuant to the tender offer will be up to $1,050.00 for each $1,000.00 principal amount of notes tendered by such holder if such notes are accepted for purchase pursuant to the offer.

Each holder who validly tenders (and does not validly withdraw) its notes on or prior to 5:00 p.m., EST, on Feb. 24, 2011 (the "Early Participation Payment Deadline") will be entitled to an early participation payment (the "Early Participation Payment"), which is included in the total consideration set forth above, of $30.00 for each $1,000.00 principal amount of notes tendered by such holder if such notes are accepted for purchase pursuant to the offer. Holders who tender notes after this date but prior to the expiration of the offer will receive only the tender consideration, which is equal to the total consideration less the Early Participation Payment. Energy XXI Gulf Coast, Inc. may accept and pay for any notes at any time after the Early Participation Payment Deadline. All holders whose notes are tendered and accepted for purchase will also receive accrued and unpaid cash interest up to, but not including, the applicable payment date.

The offer is scheduled to expire at 12:00 midnight EST on Mar. 10, 2011, unless extended or earlier terminated. The offer is subject to the satisfaction or waiver of certain conditions, including consummation of a private placement of debt securities. The offer is not subject to the receipt of any minimum amount of tenders.