Energy Partners Says Initial Assessment Shows Only Minimal Damage

Energy Partners provided an update on its activities in the Gulf of Mexico and onshore South Louisiana to discuss the impact of Hurricane Katrina. All of the Company's manned facilities were safely evacuated in advance of the storm. As of this morning the Company had completed an initial physical assessment of all of its key operated facilities and an aerial survey of the majority of its remaining operated fields. All operated platforms and producing structures are intact and appear to have suffered only minimal damage. While the Company has not conducted any inspections of pipeline and other downstream assets owned by third parties, it is currently in contact with such companies to ensure that EPL's production will be brought on line as soon as such facilities are capable of accepting the Company's production.

EPL reports that the majority of its operated production was unaffected by the storm.

In EPL's Central Shelf area, EPL reports that all production was shut in beginning Saturday and that it has mobilized crews to its facilities to prepare for the recommencement of production. The main production facilities in this area, including those in the South Timbalier 26 and 41 complexes, appear to have suffered only light damage and are expected to be capable of being returned to production shortly, subject to the ability of downstream pipelines and plants to receive and process the production.

In EPL's Eastern Shelf area, which is home to the East Bay field where all production was shut in prior to the storm, the initial damage assessments of the Company's operated properties are encouraging. The major structures in the East Bay field and field production facilities, including compressors, generators, storage tanks, and the like, appear to have weathered the storm with little damage. Other facilities, which include the crew quarters, field offices and associated support facilities, did incur significant damage. At this point the production at East Bay will more likely be constrained by logistics than actual production capabilities. Additionally, a deepwater semisubmersible drilling rig not associated with Company operations was found grounded in the East Bay field. An assessment team is expected to be on the ground at East Bay tomorrow to determine the most expeditious means of getting necessary personnel to the field to begin the process of restoring the field to production.

EPL's onshore south Louisiana operations suffered only light damage and the wells are either currently producing or ready to recommence production once third party transmission lines are ready to receive that production.

As concerns rig operations, all four of EPL's operated rigs were safely secured and evacuated prior to the storm. In all cases, crews have returned to the rigs and are in various stages of resuming drilling and completion operations.

EPL will be updating its production and drilling operations as additional information becomes available. After the Company has the appropriate information, it will provide updated guidance relative to production volumes for the third 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 shallow to moderate depth waters of the Gulf of Mexico Shelf.
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