"Our recent bolt-on acquisitions at Bayou Carlin represent a strategic opportunity in South Louisiana," Schiller said. "As operator of the field, we are moving quickly to prove up the extent of the discovery with the drilling of the third well in the field."
The Duplantis well (98.7% WI / 73.9% NRI) in the Bayou Carlin field was spud in late February and is drilling below 11,400 feet TVD/MD toward a proposed depth of 20,400 feet TVD/MD. Duplantis is targeting the MA-10 and MA-11A sands currently producing in existing wells, in addition to potential shallower and deeper sands that could add to the field's size.
Current production approximates 46,000 BOE/d net, including about 30,000 barrels per day (Bbl/d) of oil, with approximately 5,000 BOE/d temporarily offline due to various unrelated issues, bringing total capacity to approximately 51,000 BOE/d. Production for the fiscal third quarter ended March 31, 2013 is expected to average 44,000 BOE/d, of which approximately 29,000 Bbl/d is oil.Hedge Position Update Energy XXI restructured 16,000 Bbl/d of previously existing calendar year 2013 Brent put spreads, increasing the average protection level nearly $23.00/Bbl to approximately $106.00/Bbl, for a cost of $2.67/Bbl. Restructuring included purchasing 5,000 Bbl/d of calls for calendar year 2013, and an additional 5,000 Bbl/d of calls through June 2013, taking advantage of historically low implied volatility, to substantially enhance the upside potential of crude oil revenue. Forward-Looking Statements All statements included in this release relating to future plans, projects, events or conditions and all other statements other than statements of historical fact included in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions, including changes in long-term oil and gas prices or other market conditions affecting the oil and gas industry, reservoir performance, the outcome of commercial negotiations and changes in technical or operating conditions, among others, that could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements. Energy XXI assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. About the Company Energy XXI is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Cantor Fitzgerald Europe is Energy XXI's listing broker in the United Kingdom. To learn more, visit the Energy XXI website at www.EnergyXXI.com . GLOSSARY Barrel – unit of measure for oil and petroleum products, equivalent to 42 U.S. gallons. BOE – barrels of oil equivalent, used to equate natural gas volumes to liquid barrels at a general conversion rate of 6,000 cubic feet of gas per barrel. BOE/d – barrels of oil equivalent per day. MD – measured depth. MMcf/d – million cubic feet of gas per day. Net Pay – cumulative hydrocarbon-bearing formations. NRI, Net Revenue Interest – the percentage of production revenue allocated to the working interest after first deducting proceeds allocated to royalty and overriding interest. TVD – true vertical depth of a well. WI, Working Interest – the interest held in lands by virtue of a lease, operating agreement, fee title or otherwise, under which the owner of the interest is vested with the right to explore for, develop, produce and own oil, gas or other minerals and bears the proportional cost of such operations. Workover / Recompletion – operations on a producing well to restore or increase production. A workover or recompletion may be performed to stimulate the well, remove sand or wax from the wellbore, to mechanically repair the well, or for other reasons.
CONTACT: ENQUIRIES OF THE COMPANY Energy XXI Stewart Lawrence Vice President, Investor Relations and Communications 713-351-3006 firstname.lastname@example.org Greg Smith Director, Investor Relations 713-351-3149 email@example.com Cantor Fitzgerald Nominated Adviser: David Porter, Rick Thompson Corporate Broking: Richard Redmayne Tel: +44 (0) 20 7107 8000 Pelham Bell Pottinger James Henderson firstname.lastname@example.org Mark Antelme email@example.com +44 (0) 20 7861 3232