Continuing forward with its 2003 exploration and production strategy, Energy Partners Ltd. (EPL) said Friday that it has drilled a discovery well in the shallow waters of the Gulf of Mexico and acquired new state leases in close proximity to its East Bay field.

Located approximately 230 miles southwest of New Orleans in 189 feet of water, the South Marsh Island 109 No. 1 well was drilled as a straight hole to a total depth of 10,400 feet, encountering natural gas pay in the objective sand interval. EPL holds a 25% working interest in the well, while Hunt Petroleum, a privately held exploration and production company, is the operator and has a 50% working interest. The remaining interests are held by Cheyenne International Corp. (18.75%) and CL & F Resources LP (6.25%).

New Orleans-based EPL said the well has been cased and suspended, and the operator is setting a template to facilitate the drilling of as many as three delineation wells. Drilling of the second well is expected to begin within the next week. Under the current timetable, initial production is expected in the second half of 2004.

“South Marsh Island 109 is an excellent example of how quickly exciting new prospects can be advanced through our exploratory program,” said CEO Richard A. Bachmann. “The lease was acquired in the March 2003 lease sale and the first well was drilled within five months of the date the lease was awarded.

“South Marsh Island 109 represents the first of what we hope will be many more drilling successes in the fourth quarter. We have a very busy and exciting schedule ahead of us, with as many as 16 additional exploratory prospects scheduled for drilling between now and year-end. We are pleased that our strong exploratory track record is continuing, with eight successes out of ten wells drilled so far in 2003,” he said.

In other news, the company announced that it was the successful high bidder on four tracts covering approximately 2,650 acres in the Louisiana State Lease Sale held on Oct. 8. All of the leases are either immediately adjacent or in close proximity to the EPL’s East Bay field at the mouth of the Mississippi River. EPL’s bids for the four tracts totaled just under $1 million.

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