Energy XXI to earn Blackbeard interest

Energy XXI has signed an agreement with McMoRan Exploration to earn working interests in the South Timbalier block 168 No. 1 exploration well, formerly known as the Blackbeard West No. 1, on the shelf.

Offshore staff

HOUSTON -- Energy XXI has signed an agreement with McMoRan Exploration to earn working interests in the South Timbalier block 168 No. 1 exploration well, formerly known as the Blackbeard West No. 1, on the shelf.

The agreement earns the company a 20% working interest in five blocks encompassing the Blackbeard West prospect. Subject to certain preferential rights held by third parties, McMoRan will also assign a proportional share of its interest in 81 additional blocks to Energy XXI.

"Blackbeard is an exciting, opportunistic addition to our drilling program, offering multiple trillions of cubic feet of natural gas potential," says John Schiller, chairman and CEO of Energy XXI. "We reserve a portion of our drilling budget for swing-for-the-fences projects such as this, and are pleased to team up with McMoRan again, following our joint success last year with the Laphroaig discovery."

04/03/2008

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