Energy XXI Receives Borrowing Base Redetermination Set at $240MM

Energy XXI has announced completion of its customary semi-annual redetermination of the borrowing base under its revolving credit facility, which has been set at $240 million.

On a pro forma basis, after completing all the commitments included as part of this redetermination, the company expects to be fully drawn under the revolver and have $61 million of cash on hand.

"The credit facility redetermination leaves Energy XXI with good liquidity and a strategic plan designed to allow us to further reduce debt," Energy XXI Chairman and CEO John Schiller said.

"In addition, the amended facility includes revised covenants that provide greater confidence that we can continue to pass coverage tests in the future."

Energy XXI also has agreed to discontinue making any dividend distributions until the next borrowing base redetermination is finalized in late 2009. The previous quarter's dividend rate was $0.005 per share.