EPL Provides Lease Sale Results and Operational Update
Energy Partners, Ltd. (“EPL” or the “Company”) (NYSE:EPL) today provided results from the Central Gulf of Mexico Lease Sale 206 held yesterday in New Orleans, LA and an update on its operations.
The Company today announced that it was the high bidder on eight leases at the Central Gulf of Mexico Lease Sale 206 held yesterday in New Orleans, LA. The eight high bid lease blocks cover a total of 37,448 acres on a gross basis, and include seven blocks on the Gulf of Mexico Shelf and one in deepwater located in the Missisippi Canyon area. The seven high bid blocks on the Shelf are all located in EPL’s core focus area and include three South Timbalier, two Grand Isle and two West Delta blocks. EPL’s share of the high bids totals $4.7 million.
The Company announced that the moderate risk, moderate potential Gulf of Mexico Shelf exploratory well, South Timbalier 46 #5 (#A-3) well, was drilled to its objective section to the northeast of the initial discovery area and encountered sands, but did not see commercial hydrocarbons. The Company will recognize dry hole expense currently estimated at $18 million in the first quarter of 2008 in connection with this 100% working interest well.
In the Greater Bay Marchand area, the ST23 #CC-14st well, was drilled to a total depth of 10,247 feet and encountered apparent high quality oil pay in a single interval. The well, which was a moderate risk, moderate potential well, is expected to be on line in the second quarter. EPL holds a 27% working interest in the well.
The Company’s ongoing operations are concentrated in its Central and Eastern core areas. EPL is currently drilling the moderate risk, moderate potential ST23 #CC-15st well located in Bay Marchand and has a rig on location in its East Bay field which is scheduled early in the second quarter to drill the first well in its pilot horizontal program intended to enhance oil production. The Company also plans to begin operations on the first of three wells in South Timbalier 26, including the #F-18st, a moderate risk, moderate potential exploration well, and two development wells. Additionally, the Company has two Shelf development projects scheduled to commence production early to mid second quarter from discoveries made in prior years, and is expected to commence production on its first deepwater GOM well, Raton, in Mississippi Canyon 248, early in the second quarter.
Founded in 1998, EPL is an independent oil and natural gas exploration and production company based in New Orleans, Louisiana. The Company’s operations are focused along the U. S. Gulf Coast, both onshore in south Louisiana and offshore in the Gulf of Mexico.
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 or anticipates will or may occur in the future are forward-looking statements. These include statements regarding:
reserve and production estimates;
oil and natural gas prices;
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 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, (504) 569-1875.