Energy XXI Receives Borrowing Base Redetermination

Energy XXI (Bermuda) Limited 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.
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.


Contact:

Energy XXI (Bermuda) Limited
Stewart Lawrence, Vice President, Investor Relations and
Communications
+1 713-351-3006
slawrence@energyxxi.com

Collins Stewart Europe Limited
Nominated Adviser and Joint UK Broker
Piers Coombs
pcoombs@collinsstewart.com
Stewart Wallace
+44 207 523 8350

Pelham PR
James Henderson
+44 207 743 6673
james.henderson@pelhampr.com
Mark Antelme
+44 203 178 6242
mark.antelme@pelhampr.com

source: yahoo