Energy Partners Comes Up Dry in Bay Marchand

Energy Partners, Ltd. announced that it has completed drilling the X-8A prospect and that the well did not encounter commercial quantities of hydrocarbons and will be plugged and abandoned.

The X 8-A well is located at Greater Bay Marchand approximately four miles south of the Louisiana coast in the shallow waters of the Gulf of Mexico. The well was drilled to a total depth of 14,240 feet and encountered 160 feet of gross interval in the primary objective of the well, the 11,800 foot sand, and an additional 130 feet of gross interval in a deeper horizon, the 12,000 foot sand. Both indicated oil and gas shows during drilling. Upon logging and coring, it was determined that the intervals were laminated and not of reservoir quality. Two shallower secondary objectives encountered a total of 28 feet of reservoir-quality sands but will be targeted for production in a later well at a potentially more attractive location.

The Company was the operator of the well and owned an 80% working interest. EPL will incur additional exploration expense of $4.7 million in the third quarter and $1.9 million in the fourth quarter because of the write-off associated with the well. Prior to the X 8-A well, EPL successfully drilled four out of five moderate-risk exploration wells so far this year, with 2 at East Bay and 2 at Greater Bay Marchand.