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| EPL Announces Discovery at South Timbalier 41 and Provides Operational Update |
NEW ORLEANS, La.--(BUSINESS WIRE)--Jan. 7, 2004--Energy Partners, Ltd. ("EPL") (NYSE:EPL) today provided an operational update covering results on two exploratory wells, current drilling operations, and a narrowing of its production guidance for the fourth quarter 2003. The Company announced that the South Timbalier 41 #1 well, on the Gulf of Mexico Shelf in 70 feet of water 70 miles south of New Orleans, was drilled as a straight hole to a depth of 15,700 feet and encountered 60 feet of apparent pay in the primary objective. EPL is the operator and owns a 60% working interest in the well; Westport Resources Corporation (NYSE:WRC) has the remaining 40% working interest. Development plans are presently being evaluated, and initial production is expected in the second half of 2004. EPL also announced that the Eugene Island 145 #1 exploratory well was a dry hole. The well penetrated sands in the target interval, but the sands were wet. The well has since been plugged and abandoned. EPL holds a 33% working interest in the project. The remaining working interests are held by private companies. EPL expects to realize a net dry hole cost of approximately $1.4 million on the project. Regarding the success at South Timbalier 41, Richard A. Bachmann, EPL's Founder, Chairman, President and CEO, remarked, "We are very pleased with the results of this well. We acquired this lease in the March 2003 lease sale and were able to successfully drill the prospect in the same year. Since the block is contiguous to one of our core properties, South Timbalier 26, we will be able to leverage infrastructure on that block for production. With initial production expected near mid-year 2004, this well shows how quickly and effectively EPL can drill and produce a well after acquiring acreage." EPL is currently drilling five other exploratory prospects on the following OCS blocks: East Cameron 378, Eugene Island 142, Eugene Island 277, South Timbalier 180, and High Island A-6. The Company also said that it expects production for the fourth quarter to fall between 22,100 and 22,600 barrels of oil equivalent (Boe) per day. This range is within the guidance range issued earlier for production, which was 22,000 to 24,000 Boe per day. Founded in 1998, EPL is an independent oil and natural gas exploration and production company based in New Orleans, Louisiana. The Company's operations are focused in the shallow to moderate depth waters of the Gulf of Mexico Shelf. Any statements made in this news release, other than those of historical fact, about an action, event or development, which the Company hopes, believes or anticipates may or will occur in the future, are "forward-looking statements" under U. S. securities laws. Such statements are subject to various assumptions, risks and uncertainties, which are specifically described in our Annual Report on Form 10-K for fiscal year ended December 31, 2002 filed with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance or an assurance that the Company's current assumptions and projections are valid. Actual results may differ materially from those projected. CONTACT: Energy Partners, Ltd., New Orleans
SOURCE: Energy Partners, Ltd. |