Energy Partners Makes Discovery at East Cameron 161

Energy Partners successfully completed five of seven wells drilled during the second quarter of 2003. All five of the successful wells were exploratory discoveries. The Company also said that it had successfully drilled the East Cameron 161 A1 sidetrack well. This exploratory well was drilled from an existing platform to a total vertical depth of 8,235 ft. and encountered approximately 50 ft. of net natural gas pay. The well is currently being completed and is expected to be onstream by the end of August. EPL is the operator and owns a 100% working interest in the well. Nine workovers/recompletions were also completed during the second quarter, of which six were natural gas and three were oil. In addition, production was initiated during the quarter at West Cameron 210 and South Marsh Island 24, both of which were successful exploratory wells in the fourth quarter of 2002. Production also commenced at Eyeball, a successful exploratory well drilled at Greater Bay Marchand in the first quarter of 2003.

On July 28, 2003, the Company initiated production from its Eugene Island 27 field, which was a 2002 exploratory discovery. The Company owns a 100% working interest in this field.

During the second quarter, the Company was awarded the six leases on which it was high bidder during the Central Gulf of Mexico Lease Sale 185 held in March 2003. The six new leases total approximately 30,000 gross acres.

Bachmann continued, "So far this year, we have successfully drilled seven of eight exploratory wells for an 88% success rate. Our strong cash flow combined with our ongoing drilling success has encouraged us to expand our capital and exploration budget for 2003. We recently announced that we intend to invest $110 million in that program, a 22% increase over the $90 million budget established at the beginning of the year. The second half of 2003 will be particularly busy, as we now plan to drill as many as 16 to 17 additional exploratory wells by year-end. Furthermore, we anticipate that at current price levels we will generate additional free cash flow that will be available to fund acquisitions or for other purposes."