Energy XXI provided an update highlighting activity on the Gulf of Mexico shelf and onshore Louisiana.

The company has entered into an agreement with Apache Corp. to explore for oil and gas pay sands associated with salt dome structures on the central Gulf of Mexico shelf. The area of mutual interest (AMI) includes several salt domes within a 135 block area. In addition, Energy XXI has acquired a 25 percent working interest in 21 non-producing primary-term leases with Apache. A new wide azimuth seismic program is underway to define the potential of the AMI, covering approximately 633,000 acres.

"This joint venture exemplifies our interest in exploring salt structures where new seismic data, remapping and remodeling could uncover significant hidden hydrocarbons," Energy XXI Chairman and Chief Executive Officer John Schiller said. "Our Pendragon exploration well, being drilled in the Vermilion area, is a similar analog. We are very excited about the potential of this new joint venture with Apache, a world-class operator with extensive expertise in the Gulf of Mexico."

Tags: Apache Corporation, Energy XXI