HOUSTON, June 19, 2007 (PRIME NEWSWIRE) -- Energy XXI (Bermuda) Limited (AIM: EXXS, EXXI) (OTCBB:EXXIF) today updated its hedge position for future sales of oil and natural gas production through 2010.
The hedges detailed in the attached table include new positions totaling 1.65 million barrels of oil and approximately 2.22 billion cubic feet of natural gas, primarily associated with the company's recent purchase of Gulf of Mexico producing properties. The new positions are comprised of fixed-price swaps averaging $69.88 per barrel on 1.22 million barrels of oil, three-way costless collars with a $50 subfloor, $65 floor and $82 ceiling on 432,000 barrels of oil, and three-way costless collars with a $6 subfloor, $8.50 floor and $9.80 ceiling on approximately 2.22 billion cubic feet of natural gas.
About the Company
Energy XXI is an independent oil and natural gas exploration and production company whose growth strategy emphasizes acquisitions, enhanced by its value-added organic drilling program. The company's properties are primarily located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. On June 8, 2007, Energy XXI closed the purchase of Gulf of Mexico shelf properties from Pogo Producing Company. Due to the transaction, the company's registration statement on Form S-1, which in April was declared effective by the U.S. Securities and Exchange Commission, has been temporarily suspended. Collins Stewart Europe Limited and Jefferies International are Energy XXI listing brokers in the United Kingdom. In the United States, Jefferies & Company, BMO Capital Markets, Collins Stewart and Natexis Bleichroeder are market makers.
The Energy XXI logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3587
Summary: CL (Volumes in 000 Barrels) Year Hedge Volume Price 2007 Swap 223 $65.95 2008 Swap 1152 $69.40 2009 Swap 918 $69.55 2010 Swap 737 $69.61 Total 3030 $69.24 Year Hedge Volume Price 2007 Collar 153 $60/$78 2008 Collar 231 $60/$78 Total 384 $60/$78 Year Hedge Volume Price 2007 3-Way Collar 92 $55/$65/$72.90 2008 3-Way Collar 304 $55/$65/$72.90 2009 3-Way Collar 117 $55/$65/$72.90 Total 513 $55/$65/$72.90 Year Hedge Volume Price 2007 3-Way Collar 417 $45/$55/$61.60 Total 417 $45/$55/$61.60 Year Hedge Volume Price 2008 3-Way Collar 144 $50/$65/$82 2009 3-Way Collar 144 $50/$65/$82 2010 3-Way Collar 144 $50/$65/$82 Total 432 $50/$65/$82 Year Hedge Volume Price Premium 2007 Put 78 $60.00 $4.20 2008 Put 116 $60.00 $4.20 Total 194 $60.00 Total Notional Hedge 4970 Summary: NG (Volumes in 000 mmBtu) Year Hedge Volume Price 2007 Swap 5858 $8.72 2008 Swap 7800 $8.82 2009 Swap 4160 $8.54 Total 17818 $8.72 Year Hedge Volume Price 2007 Collar 500 $8/$11.10 2008 Collar 940 $8/$11.10 Total 1440 $8/$11.10 Year Hedge Volume Price 2007 Collar 420 $8.50/$10.425 2008 Collar 840 $8.50/$10.425 Total 1260 $8.50/$10.425 Year Hedge Volume Price 2007 3-Way Collar 280 $6/$8/$10 2008 3-Way Collar 1130 $6/$8/$10 2009 3-Way Collar 2810 $6/$8/$10 Total 4220 $6/$8/$10 Year Hedge Volume Price 2007 3-Way Collar 60 $6/$8.50/$9.80 2008 3-Way Collar 720 $6/$8.50/$9.80 2009 3-Way Collar 720 $6/$8.50/$9.80 2010 3-Way Collar 720 $6/$8.50/$9.80 Total 2220 $6/$8.50/$9.80 Year Hedge Volume Price Premium 2007 Put 420 $8.00 $0.323 2008 Put 490 $8.00 $0.915 Total 910 $8.00 Year Hedge Volume Price Premium 2007 Put 70 $8.50 $0.000 (a) Total 70 $8.50 Year Hedge Volume Price Premium 2007 Put Spread 3700 $6/$8 $0.527 2008 Put Spread 5380 $6/$8 $0.910 Total 9080 $6/$8 Total Notional Hedge 37018 (a) The $0.00 premium for the $8.50 puts is not an error. EXXI converted costless collars to put spreads and puts by re-purchasing the upper call for cash. 2007 includes production for delivery 1 July 2007 and later.