The Lineham Creek exploration prospect, located onshore in Cameron Parish, Louisiana, approximately 55 miles northwest of Davy Jones, is drilling below 29,400 feet, toward a target depth of 30,500 feet, targeting Eocene and Paleocene objectives below the salt weld. Chevron U.S.A. Inc., as operator of the well, holds a 50 percent working interest. Energy XXI holds a 9 percent working interest and a 6.75 percent net revenue interest in the well. Total net investment in Lineham Creek was approximately $16.0 million at March 31, 2013.Capital Expenditures During the 2013 fiscal third quarter, capital expenditures, including plug-and-abandonment and excluding acquisition costs, totaled $191 million, with $61 million in exploration and $130 million in development and other costs. Capital expenditures for the full fiscal year ending June 30, 2013, excluding acquisitions, are expected to total between $780 million and $810 million. Acquired Reserves Energy XXI added approximately 15 million barrels of oil equivalent (MMBOE) of proved reserves as a result of the Vermilion and Bayou Carlin acquisitions, made in late 2012 and early 2013, respectively. Probable reserves associated with the acquisitions totaled an additional 18 MMBOE, while possible reserves totaled 42 MMBOE. Expenditures for the acquisitions totaled $154 million. Sub-salt Exploration Joint Venture Energy XXI in March entered into an agreement with Apache Corp. to explore for oil and gas pay sands associated with salt dome structures on the central Gulf of Mexico shelf. The area of mutual interest (AMI) includes several salt domes within a 135-block area. In addition, Energy XXI acquired a 25 percent working interest in 19 non-producing primary-term leases with Apache. A new wide azimuth seismic program is underway to define the potential within the AMI, covering approximately 633,000 acres. Soon after completing the joint venture agreement, Apache and Energy XXI jointly bid and were the apparent high bidders on seven blocks in the Main Pass area during the recent central Gulf of Mexico lease sale #227 held by the U.S. Department of the Interior's Bureau of Ocean Energy Management. Separately, Energy XXI was the apparent high bidder on two additional blocks in the area.