Energy XXI Reports Fiscal First-Quarter Results
Quarterly Volumes Grow 90% To More Than 26,000 BOE/d; Cash Flow More Than Quadruples To Nearly $77 Million
HOUSTON, Nov. 13, 2007 (PRIME NEWSWIRE) -- Energy XXI (Bermuda) Limited (Nasdaq:EXXI) (AIM: EXXS, EXXI) today announced fiscal first-quarter financial and operating results for the period ended Sept. 30, 2007.
"Energy XXI achieved a 25 percent increase in production volumes relative to the immediately preceding quarter, and a 90 percent increase relative to the prior year's fiscal first quarter," Energy XXI Chairman and CEO John Schiller said. "Our volumes remained on an upward trajectory in October, averaging 26,500 barrels of oil equivalent per day (BOE/d), despite the shut-in of our Rabbit Island field due to maintenance on a third-party natural gas pipeline. The shut-in affected about 2,000 BOE/d of net production beginning in mid-October and is expected to last through November."
For the 2008 fiscal first-quarter, revenues were $143.6 million and earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) totaled $102.4 million, compared with revenues of $65.8 million and EBITDA of $45.1 million in the 2007 fiscal first quarter. Net income was $1.9 million, or $.02 per diluted share, compared with net income of $1.9 million, or $.02 per diluted share, in the 2007 fiscal first quarter.
Net cash provided by operating activities totaled $76.7 million for the 2008 fiscal first quarter, compared with $17.7 million in the 2007 fiscal first quarter. Discretionary cash flow was $79.0 million in the 2008 fiscal first quarter, compared with $40.3 million in the 2007 fiscal first quarter.
For the 2008 fiscal first quarter, sales volumes averaged 26,200 BOE/d, compared with 13,800 BOE/d in the 2007 fiscal first quarter. The net realized price received for the company's production in the 2008 fiscal first quarter averaged $59.63 per BOE, including $3.94 per BOE contributed by hedging, compared with a net realized price of $52.03 per BOE, including $1.68 per BOE contributed by hedging, in the 2007 fiscal first quarter.
Capital Expenditures
During the 2008 fiscal first quarter, capital expenditures, excluding acquisitions, totaled $79.5 million. In addition, producing property acquisitions totaled $33.4 million, including $29.9 million involving a partnership with Castex Energy. The fiscal-year 2008 capital budget, excluding acquisitions, is unchanged at approximately $260 million.
1st Quarter Operational Highlights
During the fiscal first quarter, Energy XXI was successful in four of five exploration wells and one of three development wells. Further detail on the exploration and development program is provided in the attached Operations Report.
"Volume growth last year was driven by a very active development drilling program, particularly at our South Timbalier 21 field offshore Louisiana, whereas growth this year revolves around the optimization of production at the former Pogo properties acquired in June," Energy XXI President and Chief Operating Officer Steve Weyel said. "We have made good progress with the newly added properties, which continue to achieve volume growth ahead of our expectations, without having drilled a single well. We plan to ramp up the offshore drilling program later in the year, but for now we are concentrating on operating enhancements, getting higher rates from the existing producing wells while improving the on-line performance of the acquired facilities."
Conference Call Today at 10 a.m. EST, 3 p.m. London Time
Energy XXI will host its first-quarter conference call today, Tuesday, Nov. 13, 2007, at 10 a.m. EST (3 p.m. London time). The dial-in number is 1 (913) 312-0868 in the U.S. and 08000 517 166 in the U.K., and the confirmation code is 7144886. For complete instructions on how to actively participate in the conference call, or to listen to the live audio webcast or a replay, please refer to www.energyxxi.com.
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.
Competent Person Disclosure
The technical information contained in this announcement relating to operations adheres to the standard set by the Society of Petroleum Engineers. Tom O'Donnell, Vice President of Corporate Development, a registered Petroleum Engineer, is the qualified person who has reviewed and approved the technical information contained in this announcement.
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 primarily located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Collins Stewart Europe Limited and Tristone Capital Limited are Energy XXI listing brokers in the United Kingdom. In the United States, BMO Capital Markets, Collins Stewart, Dahlman Rose & Co., Jefferies & Company, Natixis Bleichroeder and Sterne Agee & Leach, Inc. are market makers. To learn more, visit the Energy XXI website at www.energyxxi.com
The Energy XXI logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3587
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED BALANCE SHEETS
(In Thousands, except share information)
September 30, June 30,
2007 2007
--------------------------
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 12,000 $ 19,784
Accounts receivable
Oil and natural gas sales 56,396 55,763
Joint interest billings 23,104 14,377
Insurance and other 20,365 958
Prepaid expenses and other
current assets 34,485 21,870
Royalty deposits 9,305 2,175
Derivative financial instruments 10,729 17,131
--------------------------
Total Current Assets 166,384 132,058
--------------------------
Property and Equipment, net of
accumulated depreciation, depletion,
and amortization
Oil and natural gas properties
- full cost method of accounting 1,530,248 1,491,685
Other property and equipment 3,153 3,097
--------------------------
Total Property and Equipment 1,533,401 1,494,782
--------------------------
Other Assets
Derivative financial instruments 1,767 616
Debt issuance costs, net of
accumulated amortization 19,857 20,986
--------------------------
Total Other Assets 21,624 21,602
--------------------------
Total Assets $ 1,721,409 $ 1,648,442
==========================
LIABILITIES
Current Liabilities
Accounts payable $ 80,372 $ 79,563
Advances from joint interest partners 1,716 2,026
Accrued liabilities 54,951 33,459
Deferred income taxes 1,044 1,044
Derivative financial instruments 9,356 1,480
Note payable 14,739 --
Current maturities of long-term debt 5,432 5,508
--------------------------
Total current liabilities 167,610 123,080
Long-term debt, less current maturities 1,080,234 1,045,511
Deferred income taxes 11,099 14,788
Asset retirement obligations 65,978 63,364
Derivative financial instruments 5,950 4,573
--------------------------
Total Liabilities 1,330,871 1,251,316
--------------------------
Stockholders' Equity
Preferred stock, $0.01 par value,
2,500,000 shares authorized and
no shares issued at September
30, 2007 and June 30, 2007 -- --
Common stock, $0.001 par value,
400,000,000 shares authorized and
84,511,906 and 84,203,444 issued
and outstanding at September 30, 2007
and June 30, 2007, respectively 84 84
Additional paid-in capital 363,305 363,206
Retained earnings 32,960 31,072
Accumulated other comprehensive
income (loss), net of tax expense (5,811) 2,764
--------------------------
Total Stockholders' Equity 390,538 397,126
--------------------------
Total Liabilities and
Stockholders' Equity $ 1,721,409 $ 1,648,442
==========================
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except per share information)
(Unaudited)
Three Months Ended
September 30,
----------------------
2007 2006
----------------------
Revenues
Oil sales $ 87,573 $ 35,152
Natural gas sales 56,035 30,665
----------------------
Total Revenues 143,608 65,817
----------------------
Costs and Expenses
Lease operating expense 30,693 14,681
Production taxes 1,960 811
Depreciation, depletion and amortization 73,253 27,744
Accretion of asset retirement obligation 1,760 871
General and administrative expense 5,771 5,018
Loss (gain) on derivative
financial instruments 1,042 (705)
----------------------
Total Costs and Expenses 114,479 48,420
----------------------
Operating Income 29,129 17,397
----------------------
Other Income (Expense)
Interest income 498 426
Interest expense (26,811) (14,859)
----------------------
Total Other Income (Expense) (26,313) (14,433)
----------------------
Income Before Income Taxes 2,816 2,964
Provision for Income Taxes 929 1,031
----------------------
Net Income $ 1,887 $ 1,933
======================
Earnings Per Share
Basic $ 0.02 $ 0.02
Diluted $ 0.02 $ 0.02
Weighted Average Number of Common
Stock Outstanding
Basic 84,135 83,662
Diluted 94,321 83,833
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Three Months Ended
September 30,
---------------------
2007 2006
---------------------
Cash Flows From Operating Activities
Net income $ 1,887 $ 1,933
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Deferred income tax expense 929 1,031
Change in derivative financial instruments (22) 3,331
Accretion of asset retirement obligations 1,760 871
Depletion, depreciation, and amortization 73,253 27,744
Write-off and amortization of debt
issuance costs 1,120 5,367
Common stock issued to Directors
for services 67 --
Changes in operating assets and
liabilities
Accounts receivable (21,252) (20,120)
Prepaid expenses and other
current assets (19,745) (10,380)
Accounts payable and other
liabilities 38,675 7,884
---------------------
Net Cash Provided by Operating Activities 76,672 17,661
---------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions (3,521) (301,177)
Capital expenditures (79,489) (48,509)
Insurance payments received -- 4,581
Proceeds from the sale of oil and natural
gas properties -- 1,400
Other 2 2,540
---------------------
NET CASH USED IN INVESTING ACTIVITIES (83,008) (341,165)
---------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of common stock 32 20,385
Proceeds from long-term debt 20,000 269,000
Payments on long-term debt (20,000) (14,625)
Payments on put financing (1,490) (833)
Debt issuance costs -- (4,741)
Other 10 --
---------------------
NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES (1,448) 269,186
---------------------
NET DECREASE IN CASH AND CASH EQUIVALENTS (7,784) (54,318)
CASH AND CASH EQUIVALENTS, beginning of period 19,784 62,389
---------------------
CASH AND CASH EQUIVALENTS, end of period $ 12,000 $ 8,071
=====================
ENERGY XXI (BERMUDA) LIMITED
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In Thousands, except per share information)
(Unaudited)
As required under Regulation G of the Securities Exchange Act of
1934, provided below are reconciliations of net income to the
following non-GAAP financial measures: EBITDA and discretionary cash
flow. The company uses these non-GAAP measures as key metrics for the
management of the company and to demonstrate the company's ability to
internally fund capital expenditures and service debt. The non-GAAP
measures are useful in comparisons of oil and gas exploration and
production companies as they exclude non-operating fluctuations in
assets and liabilities.
Three Months Ended
September 30,
----------------------
2007 2006
----------------------
Net Income as Reported $ 1,887 $ 1,933
Total other (income) expense 26,313 14,433
Depreciation, depletion and amortization 73,253 27,744
Provision for income taxes 929 1,031
----------------------
EBITDA $ 102,382 $ 45,141
======================
EBITDA Per Share
Basic $ 1.22 $ 0.54
Diluted $ 1.09 $ 0.54
Weighted Average Number of
Common Stock Outstanding
Basic 84,135 83,662
Diluted 94,321 83,833
---------------------------------------------------------------------
Net Income as Reported $ 1,887 $ 1,933
Deferred income tax expense 929 1,031
Change in derivative financial instruments (22) 3,331
Accretion of asset retirement obligations 1,760 871
Depletion, depreciation, and amortization 73,253 27,744
Write-off and amortization of debt
issuance costs 1,120 5,367
Common stock issued to Directors
for services 67 --
----------------------
Discretionary Cash Flow $ 78,994 $ 40,277
======================
ENERGY XXI (BERMUDA) LIMITED
CONSOLIDATED OPERATING RESULTS
(In Thousands)
(Unaudited)
Twelve
Quarter Ended Months
--------------------------------------------- Ended
Sept 30, Dec 31, Mar 31, June 30, Sept 30, Sept 30,
2006 2006 2007 2007 2007 2007
------- ------- ------- -------- -------- --------
Operating
Revenues $65,817 $79,143 $77,608 $118,716 $143,608 $419,075
------- ------- ------- -------- -------- --------
Operating
Expenses
Lease operating
expense
Insurance
expense 2,662 2,653 4,866 2,489 5,058 15,066
Workover
expense 1,322 (495) 1,910 5,532 4,832 11,779
Other lease
operating
expense 10,697 10,629 9,575 17,145 20,803 58,152
------- ------- ------- -------- -------- --------
Total lease
operating
expense 14,681 12,787 16,351 25,166 30,693 84,997
Production
taxes 811 407 1,691 686 1,960 4,744
DD&A 27,744 31,711 28,600 57,873 73,253 191,437
General and ad-
ministrative 5,018 5,573 5,733 10,183 5,771 27,260
Other - net 166 18 (675) 1,545 2,802 3,690
------- ------- ------- -------- -------- --------
Total operating
expenses 48,420 50,496 51,700 95,453 114,479 312,128
------- ------- ------- -------- -------- --------
Operating
Income $17,397 $28,647 $25,908 $ 23,263 $ 29,129 $106,947
======= ======= ======= ======== ======== ========
Sales Volumes
per Day
Natural gas
(MMcf) 47.1 52.1 42.1 60.0 83.5 59.5
Crude oil
(MBbls) 5.9 7.0 7.5 10.9 12.3 9.4
Total (MBOE) 13.8 15.7 14.5 20.9 26.2 19.3
Average Sales
Price
Natural gas
per Mcf $ 6.28 $ 6.67 $ 7.77 $ 7.78 $ 5.83 $ 6.85
Hedge gain
per Mcf 0.80 0.67 1.43 0.80 1.46 1.11
------- ------- ------- -------- -------- --------
Total natural
gas per
Mcf $ 7.08 $ 7.34 $ 9.20 $ 8.58 $ 7.29 $ 7.96
======= ======= ======= ======== ======== ========
Crude oil
per Bbl $ 67.16 $ 56.77 $ 56.24 $ 67.46 $ 79.19 $ 67.10
Hedge gain
(loss) per Bbl (2.48) 11.14 7.36 5.21 (1.52) 4.54
------- ------- ------- -------- -------- --------
Total crude
oil per Bbl $ 64.68 $ 67.91 $ 63.60 $ 72.67 $ 77.67 $ 71.64
======= ======= ======= ======== ======== ========
Hedge gain
per BOE $ 1.68 $ 7.19 $ 7.95 $ 5.03 $ 3.94 $ 5.64
======= ======= ======= ======== ======== ========
Operating
Revenues per
BOE $ 52.03 $ 54.71 $ 59.54 $ 62.53 $ 59.63 $ 59.38
------- ------- ------- -------- -------- --------
Operating
Expenses per
BOE
Lease operating
expense
Insurance
expense 2.10 1.83 3.73 1.31 2.10 2.13
Workover
expense 1.04 (0.34) 1.47 2.91 2.00 1.67
Other lease
operating
expense 8.46 7.35 7.34 9.03 8.64 8.24
------- ------- ------- -------- -------- --------
Total lease
operating
expense 11.60 8.84 12.54 13.25 12.74 12.04
Production
taxes 0.64 0.28 1.30 0.36 0.81 0.67
DD&A 21.93 21.92 21.94 30.48 30.42 27.13
General and ad-
ministrative 3.97 3.85 4.40 5.37 2.40 3.86
Other - net 0.14 0.02 (0.52) 0.82 1.16 0.53
------- ------- ------- -------- -------- --------
Total operating
expenses 38.28 34.91 39.66 50.28 47.53 44.23
------- ------- ------- -------- -------- --------
Operating
Income per
BOE $ 13.75 $ 19.80 $ 19.88 $ 12.25 $ 12.10 $ 15.15
======= ======= ======= ======== ======== ========
ENERGY XXI (BERMUDA) LIMITED
SUMMARY OF HEDGE POSITIONS AS OF NOVEMBER 13, 2007
Natural Gas (000 MMBTU)
------------------------------------------------------------
Average
---------------------
Qtr Instrument Volume Sub Floor Cap
---- ------------- ------ ----- ----- -----
Q208 Swaps 2,762 8.22 8.22
3-Way Collars 540 5.71 7.48 10.09
Collars 400 8.26 10.75
Puts 100 8.00
Put Spreads 1,100 6.00 8.00
Q308 Swaps 3,210 8.60 8.60
3-Way Collars 1,500 5.70 7.45 10.10
Collars 570 8.26 10.74
Puts 140 8.00
Put Spreads 1,540 6.00 8.00
Q408 Swaps 2,730 8.64 8.64
3-Way Collars 1,420 5.68 7.42 10.10
Collars 460 8.24 10.78
Puts 120 8.00
Put Spreads 1,390 6.00 8.00
Q109 Swaps 1,480 8.78 8.78
3-Way Collars 1,340 5.66 7.38 10.11
Collars 390 8.22 10.81
Puts 120 8.00
Put Spreads 1,280 6.00 8.00
Q209 Swaps 1,820 8.77 8.77
3-Way Collars 1,250 5.63 7.34 10.12
Collars 360 8.21 10.82
Puts 110 8.00
Put Spreads 1,170 6.00 8.00
Q309 Swaps 1,920 8.62 8.62
3-Way Collars 1,040 6.00 8.09 9.97
Q409 Swaps 1,720 8.46 8.46
3-Way Collars 930 6.00 8.10 9.96
Q110 Swaps 1,530 8.46 8.46
3-Way Collars 820 6.00 8.11 9.96
Q210 Swaps 1,390 8.46 8.46
3-Way Collars 740 6.00 8.12 9.95
Q310 Swaps 1,700 8.12 8.12
3-Way Collars 180 6.00 8.50 9.80
Q410 Swaps 1,500 8.12 8.12
3-Way Collars 180 6.00 8.50 9.80
Q111 Swaps 1,380 8.12 8.12
3-Way Collars 180 6.00 8.50 9.80
Q211 Swaps 1,280 8.12 8.12
3-Way Collars 180 6.00 8.50 9.80
-----------------------------------------------------------
Crude Oil (000 BBL)
-----------------------------------------------------------
Average
---------------------
Qtr Instrument Volume Sub Floor Cap
---- ------------- ------ ----- ----- -----
Q208 Swaps 383 76.60 76.60
3-Way Collars 181 46.88 56.88 63.72
Collars 191 64.46 76.98
Puts 24 60.00
Q308 Swaps 505 71.98 71.98
3-Way Collars 240 54.25 67.30 78.49
Collars 162 64.79 76.56
Puts 33 60.00
Q408 Swaps 398 70.14 70.14
3-Way Collars 208 54.13 67.19 78.50
Collars 189 65.46 76.36
Puts 30 60.00
Q109 Swaps 364 70.38 70.38
3-Way Collars 205 54.12 67.44 78.99
Collars 55 60.00 78.00
Puts 27 60.00
Q209 Swaps 320 70.37 70.37
3-Way Collars 184 54.02 67.40 79.09
Collars 51 60.00 78.00
Puts 26 60.00
Q309 Swaps 325 70.85 70.85
3-Way Collars 170 53.94 67.24 78.94
Q409 Swaps 303 70.86 70.86
3-Way Collars 137 53.69 67.37 79.66
Q110 Swaps 277 70.97 70.97
3-Way Collars 111 53.38 67.52 80.49
Q210 Swaps 257 71.01 71.01
3-Way Collars 87 52.93 67.70 81.64
Q310 Swaps 238 70.86 70.86
3-Way Collars 68 52.35 67.35 82.05
Q410 Swaps 215 70.89 70.89
3-Way Collars 60 52.00 67.00 82.04
Q111 Swaps 193 70.93 70.93
3-Way Collars 52 51.54 66.54 82.03
Q211 Swaps 171 70.96 70.96
3-Way Collars 45 50.95 65.95 82.02
Includes production for November 2007 and later
All prices are weight-averaged by contract volume
FY 2008 1st Quarter Operations Report
EXXI Fiscal 1st Quarter 2008 Drilling Results
Exploration Development Total
-------------- ------------- -------------
Gross Net Gross Net Gross Net
------ ------ ------- ----- ------ ------
Operated
Oil 1 1 1 1 2 2
Gas 1 1 0 0 1 1
Dry 0 0 2 2 2 2
Non-Operated
Oil 0 0 0 0 0 0
Gas 2 1.25 0 0 2 1.25
Dry 1 0.5 0 0 1 0.5
------ ------ ------- ----- ------ ------
Total 5 3.75 3 3 8 6.75
------ ------ ------- ----- ------ ------
Exploration Development Total
-------------- ------------- -------------
Success Rate
(Net) 87% 33% 63%
-------------- ------------- -------------
Exploration Development Total
-------------- ------------- -------------
Onshore 4 2 6
Offshore 1 1 2
====== ==== ======
Total 5 3 8
Gulf of Mexico Shelf Highlights
South Timbalier 21 (100% WI)
During the fiscal first quarter, South Timbalier 21 net production averaged 8,250 BOE/d as flush production volumes delivered by last year's accelerated drilling program dissipated. The current one-rig program is designed to essentially offset natural field declines from the more normalized 7,000 - 8,000 BOE/d range.
Activity during the quarter included the company's first exploration well in the field. Beaujolais, spud 07/17/07, TD'd at 14,066' and encountered approximately 40' of net pay in the primary D-15 through D-18 sand objectives, 20' of net pay in the S-4 interval and 16' of net pay in the D-7 and D-9 sands. The well is being dual completed in the D-15 and D-18 sands and is expected to be on production in December.
Pinot, the first of three planned South Timbalier development wells in the FY 2008 budget, spud 10/25/07 and is drilling ahead toward a planned TD of 11,375'.
Acquired Pogo Properties
Gulf of Mexico shelf properties acquired in June from Pogo Producing Company averaged 7,800 BOE/d in the fiscal first quarter, and entered the second quarter producing more than 10,000 BOE/d. Volumes from these properties have improved as extensive repair and maintenance work has been completed and efforts to optimize production have been undertaken. Evaluation of the properties is ongoing, and the company is encouraged by newly identified exploration and exploitation opportunities on and near existing producing facilities.
South Louisiana Onshore Highlights
Bayou Carlin
* C. M. Peterson Jr. #1 (31.25% WI) (Laphroaig Discovery), St. Mary Parish - Commenced production Aug. 15; ramped up in October to 40 MMcf/d and 742 BOPD through a 26/64" choke with 11,750 psig FTP.
Lake Salvador
* Devon-Mar #1 (37.5% WI), Lafourche Parish - Spud 9/12/07; reached TD of 12,480' MD on 10/06/07; three amplitude-supported objectives in the Middle Miocene Cib Op sands were found to be very high porosity wet sandstones; although the well was plugged and abandoned, the physical property logs acquired by this well will be valuable in calibrating the seismic attributes in the Lake Salvador Seismic Project.
Golden Meadow
* LaTerre Co. Inc. #1 (50% WI) (W. Lake Verret Discovery), Lafourche Parish - Spud 04/24/07; reached TD of 15,800' on 06/17/07; encountered 46' net pay; completed in the Cib. Carst. E Sand on 10/12/07 with production of 462 BOPD and 4.4 MMcf/d through a 10/64 choke with a FTP of 9,250 psig.
* LL&E #232 (25% WI), Lafourche Parish - Spud 09/22/07; reached TD of 14,000' on 10/12/07; encountered more than 100' of gross pay in the main Duval sand objective; completion operations scheduled for November.
South Lake Verret
* Jeanerette Lumber & Shingle 34-1 (100% WI), St. Martin Parish - Spud 08/08/07; reached TD of 15,069' on 09/07/07; encountered three zones of interest in the Operc 9 section; a completion rig will be brought in to test these zones.
Cote de Mer
* McIlhenny #1 well (35% WI) (Cote de Mer Prospect), Vermilion Parish - Spud 02/07/07; experienced uncontrolled release of gas on 06/11/07 at about 20,400' MD; washed out drill string to 18,600'; wellbore being evaluated for continued drilling operations while control operations are completed.
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.
Field - an area consisting of a single reservoir or multiple reservoirs all grouped on, or related to, the same individual geological structural feature or stratigraphic condition. The field name refers to the surface area, although it may refer to both the surface and the underground productive formations.
FTP - flowing tubing pressure.
MBOE - thousand barrels of oil equivalent.
MMBOE - million barrels of oil equivalent.
MD - measured depth.
Net Pay - cumulative hydrocarbon-bearing formations.
Spud - to begin drilling a well.
TD - target total depth of a well.
TD'd - to finish drilling a well.
TVD - total vertical depth.
Workover - operations on a producing well to restore or increase production. A workover 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 (Bermuda) Limited
Stewart Lawrence, Vice President, Investor Relations
and Communications
+1 713-351-3006
slawrence@energyxxi.com
Collins Stewart Europe Limited
Nominated Adviser and Joint UK Broker
Seema Paterson
+44 207 523 8321
spaterson@collins-stewart.com
Pelham PR
James Henderson
+44 207 743 6673
james.henderson@pelhampr.com
Alisdair Haythornthwaite
+44 207 743 6676
alisdair.haythornthwaite@pelhampr.com
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