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Conference call at 9

Energy XXI Reports Fiscal Third-Quarter Results
Wednesday April 30, 5:00 pm ET




* Volumes Rise 80% From Prior-Year Third Quarter
* Revenues and EBITDA More Than Double to New Record Highs
* Exploration Program Accelerates and Logs Success

HOUSTON, April 30, 2008 (PRIME NEWSWIRE) -- Energy XXI (Bermuda) Limited (NasdaqCM:EXXI - News) (LSE:EXXI.L - News) (LSE:EXXS.L - News) today announced fiscal third-quarter financial and operating results for the period ended March 31, 2008.

Source: Energy XXI


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``Our fiscal third-quarter operating results reflect the continued success of our acquire-and-exploit strategy,'' Energy XXI Chairman and CEO John Schiller said. ``Energy XXI remains on track to deliver a solid performance from our core producing properties during our 2008 fiscal year ending June 30, with the potential to significantly boost reserves through high-impact exploration.''

For the 2008 fiscal third quarter, revenues were $167.1 million and earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) totaled $117.5 million, more than double the 2007 fiscal third-quarter revenues of $77.6 million and EBITDA of $54.5 million. Net income was $10.3 million, or $0.12 per diluted share, which included a loss of $2.7 million, or $0.03 per diluted share, for non-cash mark-to-market charges on open oil and gas derivative contracts. In the 2007 fiscal third quarter, net income was $9.6 million, or $0.11 per diluted share, which included a mark-to-market gain of $1.6 million, or $0.02 per diluted share, for open oil and gas derivative contracts.

Net cash provided by operating activities totaled $112.5 million for the 2008 fiscal third quarter, compared with $76.2 million in the 2007 fiscal third quarter. Discretionary cash flow was $96.2 million in the 2008 fiscal third quarter, compared with $47.5 million in the 2007 fiscal third quarter.

For the 2008 fiscal third quarter, sales volumes averaged 26,100 barrels of oil equivalent per day (BOE/d), compared with 14,500 BOE/d in the 2007 fiscal third quarter. The net realized price received for the company's production in the 2008 fiscal third quarter averaged $70.33 per BOE, including an $8.92 per BOE reduction due to hedging, compared with a net realized price of $59.54 per BOE, including a $7.95 per BOE contribution from hedging, in the 2007 fiscal third quarter.

CAPITAL EXPENDITURES

During the 2008 fiscal third quarter, capital expenditures totaled $62.8 million. The fiscal-year 2008 capital budget, excluding acquisitions, is expected to approximate $300 million, which reflects about $40 million of added spending primarily associated with incremental exploration activity and development costs associated with successful exploration.

3RD QUARTER OPERATIONAL HIGHLIGHTS

During the fiscal third quarter, Energy XXI continued to implement its exploration and development program, details of which are provided in the attached Operations Report.

``The last few months have been encouraging for us from an operations standpoint,'' Energy XXI President and Chief Operating Officer Steve Weyel said. ``We initiated drilling and recompletion work at the Main Pass properties acquired last June, with good results that should positively impact our fourth quarter. We drilled a discovery at our Lake Salvador project onshore Louisiana, helping validate the extensive pre-drill work we have done in the area. We side-tracked and resumed drilling at the high-potential Cote de Mer prospect. More recently, we gained access to 425,000 gross acres across the ultra-deep prospect trend on the shallow-water Gulf of Mexico shelf, including the re-entry of the Blackbeard West wellbore. While production volumes continued to be frustrated by infrastructure outages during the quarter, our operated properties have performed ahead of our expectations.''

CONFERENCE CALL TOMORROW AT 9 A.M. CDT, 3 P.M. LONDON TIME

Energy XXI will host its third-quarter conference call tomorrow, Thursday, May 1, 2008, at 9 a.m. CDT (3 p.m. London time). The dial-in number is 1 [phone] in the U.S. and 08081 011 402 in the U.K., and the confirmation code is 4499493. 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 http://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