Energy XXI Announces Pricing of Tender Offer for Its 16% Second Lien Junior Secured Notes Due 2014

/ Source: GlobeNewswire

HOUSTON, Dec. 15, 2010 (GLOBE NEWSWIRE) -- Energy XXI (Bermuda) Limited (Nasdaq:EXXI) today announced the pricing terms of the tender offer by its wholly owned subsidiary, Energy XXI Gulf Coast, Inc., to purchase for cash any and all of its outstanding 16% Second Lien Junior Secured Notes due 2014.

The total consideration for the notes tendered and accepted for purchase was determined as of 2:00 p.m., New York City time, on Dec. 15, 2010 by reference to a fixed spread of 50 basis points over the 1.125% U.S. Treasury Security due June 30, 2011, pursuant to the terms and subject to the conditions set forth in Energy XXI Gulf Coast, Inc.'s Offer to Purchase, dated Nov. 29, 2010.

Assuming an early payment date of Dec. 17, 2010, the total consideration for each $1,000.00 principal amount of notes validly tendered and not withdrawn at or prior to 5:00 p.m., New York City time, on Dec. 16, 2010 (the "Early Participation Payment Deadline"), is $1,140.76, which includes an early participation payment of $30.00 per $1,000.00 principal amount of notes (the "Early Participation Payment"). The tender offer remains open and is scheduled to expire at 12:00 a.m., New York City time, on Dec. 30, 2010 (the "Expiration Date"). Holders whose notes are validly tendered after the Early Participation Payment Deadline but prior to the Expiration Date will be eligible to receive the tender offer consideration, determined as set forth in the Offer to Purchase, but will not be eligible to receive the Early Participation Payment. Closing of the tender offer is subject to the satisfaction or waiver of certain conditions, including consummation of the previously announced acquisition of assets from ExxonMobil and a private placement of debt securities, as set forth in the Offer to Purchase.

The complete terms and conditions of the offer are set forth in an Offer to Purchase and related Letter of Transmittal that are being sent to holders of notes. Copies of the Offer to Purchase and Letter of Transmittal may be obtained from the Depositary and Information Agent for the Offer, D.F. King & Co., Inc. at (888) 628-1041 (US toll free).

RBS Securities Inc. and UBS Investment Bank are the Dealer Managers for the tender offer. Questions regarding the offer may be directed to RBS Securities Inc. at (877) 297-9832 (toll-free) and (203) 897-6145 (collect) or to UBS at (888) 719-4210 (toll-free) and (203) 719-4210 (collect).

This press release is neither an offer to purchase nor a solicitation of an offer to sell the notes or any other securities. The offer is made only by and pursuant to the terms of the Offer to Purchase and the related Letter of Transmittal. None of Energy XXI Gulf Coast, Inc., Energy XXI (Bermuda) Limited, the Dealer Managers or the Depositary and Information Agent makes any recommendations as to whether holders should tender their notes pursuant to the offer.

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. Seymour Pierce is Energy XXI's listing broker in the United Kingdom.

The Energy XXI logo is available at

CONTACT: Energy XXI Stewart Lawrence, Vice President, Investor Relations and Communications 713-351-3006 Seymour Pierce - UK AIM Adviser Jonathan Wright Jeremy Porter - Corporate Finance Richard Redmayne - Corporate Broking +44 (0) 20 7107 8000 Pelham Bell Pottinger James Henderson Mark Antelme +44 (0) 20 7861 3232