EPL Epl Oil & Gas

Energy Partners, Ltd. (EPL or the Company) (NYSE:EPL) reported probable reserve estimates based upon estimates provided by its third party engineering firms totaling 9.2 million barrels of oil equivalent (Boe) as of year-end 2009.

As previously reported, EPL’s proved reserves at year-end 2009 stood at 31.2 million Boe. EPL’s proved reserves at year-end 2009 were 64% oil and 36% natural gas, and 79% were classified as proved developed. Today, EPL reported estimated probable reserves associated with its proven reserve base at year-end 2009 of 9.2 million Boe. The estimated probable reserves are concentrated within its Gulf of Mexico Shelf core assets in the East Bay and South Timbalier areas, and are comprised of 75% oil and 25% gas. Eighty-six percent of the probable reserve estimates are associated with proved developed reserves that will require production performance of the proven reserve base before being considered for proved classification, with the remainder requiring additional capital investment to test the estimated unproven reserve quantities. Additionally, the probable reserve estimates as reported are unrisked quantities.

All of the Company’s proved and probable reserve figures are based upon third party engineering estimates prepared by Netherland, Sewell & Associates, Inc. and Ryder Scott Company, L.P.

Gary Hanna, EPL’s Chief Executive Officer, commented, "We are encouraged by this evaluation by our third party engineers as it has confirmed our belief that our existing resource base contains material upside, much of which is oil potential. The concentration of the probables within our core fields, such as East Bay, matches up well with our strategy to devote resources to exploiting these assets."

Reserve Category

 

Oil (Mmboe)

 

Gas (Bcf)

 

Mmboe

Proved Developed Producing 7.9 15.4 10.4 Proved Developed Non-Producing 7.2 41.7 14.1 Proved Undeveloped 4.9 10.2 6.6 Proved 19.9 67.4 31.2 Probables 6.9 13.6 9.2 Total 26.8 81.0 40.4

Description: Founded in 1998, EPL is an independent oil and natural gas exploration and production company based in New Orleans, LA and Houston, TX. The Company’s operations are concentrated in the shallow to moderate depth waters in the Gulf of Mexico focusing on the areas offshore Louisiana as well as the deepwater Gulf of Mexico in depths less than 5,000 feet. For more information, please visit www.eplweb.com.

Forward-Looking Statements

This press release may contain forward-looking information and statements regarding EPL. Any statements included in this press release that address activities, events or developments that EPL expects, believes, plans, projects, estimates or anticipates will or may occur in the future are forward-looking statements. We believe these judgments are reasonable, but actual results may differ materially due to a variety of important factors. Among other items, such factors might include: changes in general economic conditions; uncertainties in reserve and production estimates; unanticipated recovery or production problems; hurricane and other weather-related interference with business operations; the effects of delays in completion of, or shut-ins of, gas gathering systems, pipelines and processing facilities; oil and natural gas prices and competition; the impact of derivative positions; production expenses and expense estimates; cash flow and cash flow estimates; future financial performance; planned and unplanned capital expenditures; volatility in the financial and credit markets or in oil and natural gas prices; and other matters that are discussed in EPL's filings with the Securities and Exchange Commission. (http://www.sec.gov/).