Energy Partners expects to exceed fourth quarter 2009 production guidance and has increased its full year 2010 production guidance. EPL also announced its borrowing base under its $125 million Senior Secured Revolving Credit Facility has been reaffirmed.

Increased Fourth Quarter 2009 Production Estimate and 2010 Production Guidance As previously announced, the Company had three rig operations underway in the fourth quarter 2009 on the Gulf of Mexico shelf. The operations on all three wells, which were completed just prior to or after the end of 2009, were successful and the production from the program significantly enhanced fourth quarter 2009 production averages and expectations for 2010 production averages. As a result, the Company estimates its fourth quarter 2009 production was approximately 13,700 barrels of oil equivalent (boe) per day, slightly above the production guidance given for the fourth quarter 2009 of 12,500 to 13,500 boe per day. The Company also estimated that first quarter 2010 production should average between 14,000 and 16,000 boe per day. Additionally, the Company increased its full year 2010 production guidance to 13,000 to 15,000 boe per day from the previous range of 12,500 to 13,500 boe per day (see attached guidance table).

Gary C. Hanna, the Company's CEO, stated,"Our near term focus on realigning our cost structure, converting our core proved non-producing oil assets to cash flow and internalizing plugging and abandonment expertise is progressing as planned. I am very encouraged with operational performance in the fourth quarter 2009, and we are starting to see the positive effects of the program in our production levels estimated for 2010. Combined with changes to our cost structure, implemented as part of our 2009 restructuring, our outlook for fourth quarter 2009 and 2010 cash flow remain quite bright. We will be just as active this year, with drilling and workover activities planned to commence in late February or early March."

Tags: Energy Partners