Energy Partners Increases Capital Budget by 21%

Energy Partners Limited reports that at the most recent meeting of the Board of Directors, the Board approved an increase in the 2004 capital budget from $145 million to $175 million. The new budget represents a 21% increase over the previous budget and a 40% increase over EPL's initial 2004 capital budget of $125 million. The Company said that the increase in the budget will fund the continued expansion of the 2004 exploratory program as well as contribute to the development of recent exploratory successes. EPL stated that the expanded budget will be funded entirely with internally generated cash flow.

Richard A. Bachmann, EPL's Chairman, President and Chief Executive Officer commented, "The combination of continued success in our drilling program, a growing inventory of new exploratory prospects and increased cash flow drove us to this latest increase in our capital budget. So far this year, we have already completed drilling or are currently drilling a total of 14 exploratory wells and now expect to drill at least 32 in 2004."