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EPL Announces Oil Weighted Acquisition in Shallow GOM Shelf



EPL Announces Oil Weighted Acquisition in Shallow GOM Shelf

  * $70 million acquisition in Eugene Island 258/259 field
  * Purchasing ~2.6 million boe (91% oil) with production of ~900 boe/d ( 95%
    oil)
  * Long-lived reserves, low P&A liabilities and identified upside
  * Enhances operating synergies and adds to organic inventory

HOUSTON, Jan. 2, 2014 (GLOBE NEWSWIRE) --EPL Oil & Gas, Inc. (NYSE:EPL) (EPL
or the Company) today announced it has executed a purchase and sale agreement
to acquire oil and natural gas assets in the shallow-water central Gulf of
Mexico (GOM) from Nexen Petroleum Offshore U.S.A. Inc. for $70.4 million.

The Eugene Island 258/259 field consists of five leases, namely 254, 255, 257,
258, and 259, all at 100% working interest. The assets are currently producing
approximately 900 net barrels of oil equivalent (Boe) per day, about 95% of
which is oil. EPL estimates the proved reserves as of the September 1, 2013
effective date consist of approximately 2.6 million Boe of proved developed
producing reserves, about 91% of which is oil. The field areas exhibit shallow
decline and EPL has identified upside potential beyond the current proved
reserves. The Company also estimates the asset retirement obligation to be
assumed in the acquisition is expected to total approximately $27 million.

Gary Hanna, EPL's President and CEO commented, "This purchase adds another
layer of long-lived oil production to our current asset base and additional
upside. The assets are within our shallow water Central GOM focus area, which
allows for excellent operational synergies and efficient integration. As our
successful strategy has demonstrated with prior acquisitions, we will apply
our proven regional knowledge and technical skills to exploit the upside
potential of these assets. This purchase dovetails nicely into our commitment
to acquire new 3D datasets. A new Full Azimuth Nodal dataset is currently
being shot covering these field areas, and we expect to have the data in house
during the second half of 2014. Additionally, post transaction, we will
maintain substantial liquidity through our expanded revolving credit
facility."

EPL has worked with its lenders to expand the borrowing base under its senior
secured credit facility from $425 million to $475 million, which maintains
substantial liquidity for the Company. Currently EPL has $130 million
outstanding under its revolving credit facility. EPL has begun implementing
additional oil hedges to provide further downside protection in conjunction
with this acquisition and its anticipated oil growth in 2014.

The closing of the transaction is subject to customary closing conditions and
adjustments. The economic effective date is September 1, 2013, with closing
expected late January.

Description of the Company

Founded in 1998, EPL is an independent oil and natural gas exploration and
production company headquartered in Houston, Texas with an office in New
Orleans, Louisiana. The Company's operations are concentrated in the U.S. Gulf
of Mexico shelf, focusing on the state and federal waters offshore Louisiana.
For more information, please visit www.eplweb.com.

Forward-Looking Statements

This press release may contain forward-looking information and statements
regarding EPL. Any statements included in this press release that address
activities, events or developments that EPL "expects," "believes," "plans,"
"projects," "estimates" or "anticipates" will or may occur in the future are
forward-looking statements. We believe these judgments are reasonable, but
actual results may differ materially due to a variety of important factors.
Among other items, such factors might include: the failure to complete the
proposed acquisition on the terms described above, as well as any delays in
completing the acquisition; uncertainties in estimating the asset retirement
obligations and the timing of the expenditures required to address that
obligation; hurricane and other weather-related interference with business
operations; the effects of delays in completion of, or shut-ins of, gas
gathering systems, pipelines and processing facilities; stock market
conditions; the trading price of EPL's common stock; cash demands caused by
planned and unplanned capital expenditures; changes in general economic
conditions; uncertainties in reserve and production estimates, particularly
with respect to internal estimates that are not prepared by independent
reserve engineers; unanticipated recovery or production problems; changes in
legislative and regulatory requirements concerning safety and the environment
as they relate to operations and to abandonment of wells and production
facilities; oil and natural gas prices and competition; the impact of
derivative positions; production expenses and expense estimates; cash flow and
cash flow estimates; future financial performance; drilling and operating
risks; our ability to replace oil and gas reserves; risks and liabilities
associated with properties acquired in acquisitions; integration of acquired
assets; volatility in the financial and credit markets or in oil and natural
gas prices; and other matters that are discussed in EPL's filings with the
Securities and Exchange Commission. (http://www.sec.gov/)

                                                                        13-033

CONTACT: Investors/Media
         T.J. Thom, Chief Financial Officer
         713-228-0711
         tthom@eplweb.com

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