EPL provides operational update

Energy Partners, Ltd. has provided results from the Central Gulf of Mexico Lease Sale 206 and an update on its operations.

The Company 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’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.