Quarterly / Earnings Reports | First Quarter (1Q) Update | Offshore | Drilling Activity

Energy XXI Gulf Coast Talks Q1 Drilling, Production

By: Energy XXI Gulf Coast, Inc

Share Print Bookmark    |    Thursday,May 10,2018

Energy XXI Gulf Coast reported its Q1 2018 results.

Highlights:

- Incurred a net loss of $33.1 million, or $0.99 per share, which included a $12.8 million loss on derivative financial instruments

• Generated Adjusted EBITDA of $13.6 million, an increase of $2.8 million from fourth quarter 2017
• Entered into discussions with the owner and lessor of the Grand Isle Gathering System ("GIGS") regarding, among other things, a possible restructuring of the GIGS lease

- Provided updated results on the West Delta 31 High Tide well which is currently producing approximately 1,000 barrels of oil per day and about 2.0 million cubic feet of natural gas ("MMCF") per day, exceeding pre-drill expectations

- Drilled and completed the first well in the 2018 drilling program, the West Delta 73 McCloud well, below pre-drill capital estimates, and with first production expected in May

West Delta Well

EGC spud and successfully completed the first well of the 2018 drilling program in April, the West Delta 73 C-27 McCloud, a development well location, which is expected to begin production in May. The West Delta 74 C-41ST Cato, also a development well, was spud in early May, and is currently drilling to a total depth of 11,400 feet. After completion of the Cato well, the Company plans to recomplete the D-20 ST well in the same field. As previously reported, the High Tide well, which was spud in June 2017, transitioned to oil earlier this year and is currently producing greater than 1,000 barrels of oil and 2.1 MMCF per day. EGC has a 100% working interest in all of the wells mentioned above.