Energy Partners, Ltd. (fka ERPLQ)

[di4]

EPL Receives Court Approval on All "First-Day Motions" in Its Voluntary Chapter 11 Filing
Operations to continue in the ordinary course
May 4, 2009 8:30:00 AM
Copyright Business Wire 2009


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View Additional ProfilesNEW ORLEANS--(BUSINESS WIRE)-- Energy Partners, Ltd. ("EPL" or, the "Company") (Pink Sheets: ERPL.PK) today announced the approval of all of its first-day motions by the United States Bankruptcy Court for the Southern District of Texas, Houston Division.

On May 1, 2009, the Company received Court approval during its first-day hearings to, among other things, pay employee wages and continue healthcare and related benefit plans during its restructuring under Chapter 11 on an interim basis. EPL has also received interim authority to maintain its cash management systems and for the use of its cash collateral. At the time of filing, EPL had in excess of $13 million in cash on hand. As it proceeds with its financial restructuring, the Company expects, based on current commodity prices, that its cash on hand and cash from operating activities will be adequate to fund its projected cash needs, including the payment of operating costs and expenses.

"We are pleased that the Court has granted these approvals so quickly," said Alan D. Bell, Chief Restructuring Officer. "Gaining these approvals will allow us to continue to operate in the ordinary course as we proceed through our restructuring process as planned. We intend to work closely with all of our constituencies to facilitate a controlled and expeditious process, and we look forward to emerging as a stronger and more competitive company."

The Company's lead Chapter 11 petition has been assigned case number 09-32957. Additional information about EPL's restructuring, including access to court documents and other general information about the Chapter 11 cases, is available at http://chapter11.epiqsystems.com/EPL.

Forward-Looking Statements

This press release may contain forward-looking information and statements regarding EPL. Any statements included in this press release that address activities, events or developments that EPL expects, believes, plans, projects, estimates or anticipates will or may occur in the future are forward-looking statements. We believe these judgments are reasonable, but actual results may differ materially due to a variety of important factors. Among other items, such factors might include:

-- our inability to continue business operations during the Chapter 11
proceeding;
-- our ability to obtain court approval of our plan of reorganization and
various other motions we expect to file as part of the Chapter 11
proceeding;
-- our ability to consummate our plan of reorganization as currently
planned;
-- risks associated with third party motions in the Chapter 11 proceeding,
which may interfere with our reorganization as currently planned;
-- the potential adverse effects of the Chapter 11 proceeding on our
liquidity and results of operations;
-- our ability to retain and motivate key executives and other necessary
personnel while seeking to implement our plan of reorganization;
-- our ability to continue as a going concern;
-- discussions with our bank lender group, our noteholders, our other
creditors and the Minerals Management Service;
-- changes in general economic conditions;
-- uncertainties in reserve and production estimates;
-- unanticipated recovery or production problems;
-- unanticipated results from wells being drilled or completed;
-- the effects of delays in completion of gas gathering systems, pipelines
and processing facilities;
-- oil and natural gas prices and competition;
-- the impact of derivative positions;
-- production expense estimates;
-- cash flow estimates;
-- future financial performance;
-- planned capital expenditures; and
-- other matters that are discussed in EPL's filings with the Securities
and Exchange Commission.

These statements are based on current expectations and projections about future events and involve known and unknown risks, uncertainties, and other factors that may cause actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. Please refer to EPL's filings with the SEC, including Form 10-K for the year ended December 31, 2007, Form 10-Q for the quarter ended September 30, 2008, Notification of Late Filing on Form 12b-25 related to EPL's Form 10-K for the year ended December 31, 2008 and current reports on Form 8-K, for a discussion of these risks.

Additional Information and Where to Find It

Security holders may obtain information regarding the Company from EPL's website at www.eplweb.com, from the Securities and Exchange Commission's website at www.sec.gov, or by directing a request to: Energy Partners, Ltd. 201 St. Charles Avenue, Suite 3400, New Orleans, Louisiana 70170, Attn: Secretary, [phone].




Source: Energy Partners, Ltd.


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Energy Partners
Ltd.
T.J. Thom
504-799-4830
or
Media:
Joele Frank
Wilkinson Brimmer Katcher
Jeremy Jacobs/Jed Repko
212-355-4449