EPL Signs Confidentiality Agreement with Stone Energy

Energy Partners, Ltd. (NYSE: EPL) has entered into a confidentiality agreement with Stone Energy Corporation (NYSE: SGY) to begin due diligence in conjunction with its proposed acquisition of Stone.

Richard A. Bachmann, EPL's Chairman and CEO, commented, "EPL is pleased that Stone has quickly responded to us and will allow us to begin our due diligence process today. We look forward to completing this process quickly and are hopeful it will lead to a definitive merger agreement with the proposed transaction to close in the third quarter of 2006. We are excited about the prospect of creating a premier E&P company capable of generating considerable upside value for shareholders of both companies."

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.