EPL 2008 E&P Budget Approved for $200 Million

Energy Partners Ltd (EPL) currently has two moderate risk, moderate potential exploratory wells located on the Shelf underway, including the South Timbalier (ST) 46 #5 (A-3) well and the ST 23 CC-14st well located in Bay Marchand. Both of these wells are located in EPL's core Central offshore area.

EPL's total budget for its current 2008 exploration and development program is approved up to $200 million. In addition to the two Shelf exploratory wells currently drilling in its Central offshore area, the Company plans to commence a pilot program late in the first quarter within its East Bay field to enhance oil production through the drilling of two infill horizontal wells. Additionally, the Company has three projects scheduled to commence production early to mid second quarter, including EPL's first deepwater GOM well, Raton, in Mississippi Canyon 248. The Company does not budget for acquisitions.