The Lineham Creek exploration prospect (9% WI/ 6.75% NRI), located onshore in Cameron Parish, Louisiana, has reached total depth in the sidetrack wellbore at 24,600 feet. The results of the well are under review, and Freeport McMoRan Oil and Gas plans to propose a completion operation in the sands above 24,000 feet under the Operating Agreement.
The Lomond North prospect (18% WI/ 13% NRI) in the Highlander area, located primarily in St. Martin Parish, Louisiana, is drilling below 26,800 feet toward a proposed total depth of 30,000 feet. The well is targeting Lower Wilcox and Cretaceous objectives below the salt weld. Lomond North is approximately 65 miles north of the partnership's Davy Jones discovery.
Capital expenditures for fiscal 2014, which began July 1, 2013, are now estimated at $675 million. The additional $15 million over the previously announced budget are due to the reclassification of certain general and administrative costs as capitalized costs, and therefore do not affect free cash flow expectations.Annual Investor Day Energy XXI will host an investor day in New York tomorrow, Oct. 23, 2013, beginning with a presentation at 9 a.m. Eastern time by Chairman and Chief Executive Officer John Schiller. Information regarding webcasting will be available on the Energy XXI homepage ( www.EnergyXXI.com ) in the Investor Relations, Events & Presentations section. 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 . Competent Person Disclosure The technical information contained in this announcement relating to operations adheres to the standard set by the Society of Petroleum Engineers. Phil Kerig, Director of Corporate Development, a registered Petroleum Engineer, is the qualified person who has reviewed and approved the technical information contained in this announcement. 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. Bbl/d – barrels per day of oil or condensate. MMBTU – million British thermal units. Mcf/d – thousand cubic feet of gas per day. MD – total measured depth of a well. 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. Proved, Probable, Possible reserves – are as defined in the SPE/World Petroleum Congress Standard. psi – pounds per square inch. TD – target total depth of a well. 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: 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 Europe Nominated Adviser: David Porter, Rick Thompson Corporate Broking: Richard Redmayne Tel: +44 (0) 20 7894 7000 Pelham Bell Pottinger James Henderson firstname.lastname@example.org Mark Antelme email@example.com +44 (0) 20 7861 3232
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