EPL to Launch Tender Offer for Senior Notes

Energy Partners, Ltd. on Monday announced its intention to commence a cash tender offer to purchase all of the Company's outstanding 8 3/4% Senior Notes due 2010 (the "Notes") in connection with the announced equity self-tender offer to purchase up to 8,700,000 outstanding common shares for $23 per share in cash. The cash tender offer is expected to be commenced within approximately 10 business days.

In conjunction with the tender offer, the Company will also seek consents to certain proposed amendments to certain provisions of the indenture that governs the Notes. The purpose of the proposed amendments is to eliminate substantially all restrictive covenants and certain event of default provisions of the indenture.

The purchase price for the Notes will be based on a fixed spread of 50 basis points over the yield of the relevant U.S. Treasury Note to the earliest redemption date of the Notes (August 1, 2007 at 104.375% of principal amount). The purchase price will be inclusive of a consent payment for holders who validly tender and do not withdraw Notes on or prior to the payment deadline. The consent payment deadline is expected to be the tenth business day following commencement of the tender offer. The tender offer will be conditioned upon, among other things, the receipt of consents from the holders of a majority in aggregate outstanding principal amount of the Notes, the concurrent closing of the Company's equity self-tender offer and consummation of the requisite financing to purchase the Notes.

Banc of America Securities LLC is expected to act as dealer manager for the equity self-tender offer and dealer manager for the debt tender offer and related consent solicitation. MacKenzie Partners, Inc. is expected to act as the information agent for both tender offers, and can be contacted at 1-800-322-2885 toll free or at 1-212-929-5500 collect or by e-mail at EPL@mackenziepartners.com.

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.


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