HOUSTON, March 26, 2009 (GLOBE NEWSWIRE) -- Energy XXI (Bermuda) Limited (Nasdaq:EXXI) (AIM:EXXI) today announced completion of its customary semi-annual redetermination of the borrowing base under its revolving credit facility, which has been set at $240 million. On a pro forma basis, after completing all the commitments included as part of this redetermination, the company expects to be fully drawn under the revolver and have $61 million of cash on hand.
"The credit facility redetermination leaves Energy XXI with good liquidity and a strategic plan designed to allow us to further reduce debt," Energy XXI Chairman and CEO John Schiller said. "In addition, the amended facility includes revised covenants that provide greater confidence that we can continue to pass coverage tests in the future."
Energy XXI also has agreed to discontinue making any dividend distributions until the next borrowing base redetermination is finalized in late 2009. The previous quarter's dividend rate was $0.005 per share.
Forward-Looking Statements
All statements included in this release relating to future plans, projects, events or conditions and all other statements other than statements of historical fact included in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations and are subject to a number of risks, uncertainties and assumptions, including changes in long-term oil and gas prices or other market conditions affecting the oil and gas industry, reservoir performance, the outcome of commercial negotiations and changes in technical or operating conditions, among others, that could cause actual results, including project plans and related expenditures and resource recoveries, to differ materially from those described in the forward-looking statements. Energy XXI assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law.
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 located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Collins Stewart Europe Limited and Tristone Capital Limited are Energy XXI listing brokers in the United Kingdom. To learn more, visit the Energy XXI website at www.energyxxi.com.
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