8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): April 30, 2008

Energy XXI (Bermuda) Limited

(Exact name of registrant as specified in its charter)

000-52281

(Commission File Number)

Bermuda	98-0499286
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Canon’s Court, 22 Victoria Street, PO Box HM
1179, Hamilton HM EX, Bermuda	Not Applicable
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: 441-295-2244

Check the appropriate below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

___	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
___	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
___	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))
___	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Item 2.02.  Results of Operations and Financial Condition

On April 30, 2008, Energy XXI (Bermuda) Limited (the "Company"), issued a press release regarding the results of its operations and financial condition for the third quarter ended March 31, 2008.  A copy of the press release is attached hereto as Exhibit 99.1, is incorporated by reference, and is hereby furnished.

Item 9.01.  Financial Statements and Exhibits.

(d) Exhibits.

EXHIBIT NO.	ITEM
99.1	Press Release issued April 30, 2008

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Energy XXI (Bermuda) Limited
Dated May 1, 2008	By	/s/ David West Griffin
		Name: David West Griffin
		Title: Chief Financial Officer

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Exhibit Index

EXHIBIT NO.	ITEM
99.1	Press Release issued April 30, 2008

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EX-99.1

Exhibit 99.1

Energy XXI Reports Fiscal Third-Quarter Results

·   Volumes rise 80% from prior-year third quarter

·   Revenues and EBITDA more than double to new record highs

·   Exploration program accelerates and logs success

HOUSTON – April 30, 2008 – Energy XXI (Bermuda) Limited (NASDAQ: EXXI) (AIM: EXXI, EXXS) today announced fiscal third-quarter financial and operating results for the period ended March 31, 2008.

“Our fiscal third-quarter operating results reflect the continued success of our acquire-and-exploit strategy,” Energy XXI Chairman and CEO John Schiller said.  “Energy XXI remains on track to deliver a solid performance from our core producing properties during our 2008 fiscal year ending June 30, with the potential to significantly boost reserves through high-impact exploration.”

For the 2008 fiscal third quarter, revenues were $167.1 million and earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) totaled $117.5 million, more than double the 2007 fiscal third-quarter revenues of $77.6 million and EBITDA of $54.5 million.  Net income was $10.3 million, or $0.12 per diluted share, which included a loss of $2.7 million, or $0.03 per diluted share, for non-cash mark-to-market charges on open oil and gas derivative contracts.  In the 2007 fiscal third quarter, net income was $9.6 million, or $0.11 per diluted share, which included a mark-to-market gain of $1.6 million, or $0.02 per diluted share, for open oil and gas derivative contracts.

Net cash provided by operating activities totaled $112.5 million for the 2008 fiscal third quarter, compared with $76.2 million in the 2007 fiscal third quarter.  Discretionary cash flow was $96.2 million in the 2008 fiscal third quarter, compared with $47.5 million in the 2007 fiscal third quarter.

For the 2008 fiscal third quarter, sales volumes averaged 26,100 barrels of oil equivalent per day (BOE/d), compared with 14,500 BOE/d in the 2007 fiscal third quarter.  The net realized price received for the company’s production in the 2008 fiscal third quarter averaged $70.33 per BOE, including an $8.92 per BOE reduction due to hedging, compared with a net realized price of $59.54 per BOE, including a $7.95 per BOE contribution from hedging, in the 2007 fiscal third quarter.

Capital Expenditures

During the 2008 fiscal third quarter, capital expenditures totaled $62.8 million.  The fiscal-year 2008 capital budget, excluding acquisitions, is expected to approximate $300 million, which reflects about $40 million of added spending primarily associated with incremental exploration activity and development costs associated with successful exploration.

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3rd Quarter Operational Highlights

During the fiscal third quarter, Energy XXI continued to implement its exploration and development program, details of which are provided in the attached Operations Report.

“The last few months have been encouraging for us from an operations standpoint,” Energy XXI President and Chief Operating Officer Steve Weyel said.  “We initiated drilling and recompletion work at the Main Pass properties acquired last June, with good results that should positively impact our fourth quarter.  We drilled a discovery at our Lake Salvador project onshore Louisiana, helping validate the extensive pre-drill work we have done in the area.  We side-tracked and resumed drilling at the high-potential Cote de Mer prospect.  More recently, we gained access to 425,000 gross acres across the ultra-deep prospect trend on the shallow-water Gulf of Mexico shelf, including the re-entry of the Blackbeard West wellbore. While production volumes continued to be frustrated by infrastructure outages during the quarter, our operated properties have performed ahead of our expectations.”

Conference Call Tomorrow at 9 a.m. CDT, 3 p.m. London Time

Energy XXI will host its third-quarter conference call tomorrow, Thursday, May 1, 2008, at 9 a.m. CDT (3 p.m. London time). The dial-in number is 1 (913) 312-0715 in the U.S. and 08081 011 402 in the U.K., and the confirmation code is 4499493. For complete instructions on how to actively participate in the conference call, or to listen to the live audio webcast or a replay, please refer to www.energyxxi.com.

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.

Competent Person Disclosure

The technical information contained in this announcement relating to operations (including information in the attached Operations Report) adheres to the standard set by the Society of Petroleum Engineers.  Tom O’Donnell, Vice President of Corporate Development, a registered Petroleum Engineer, is the qualified person who has reviewed and approved the technical information contained in this announcement.

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 primarily located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore. Collins Stewart Europe Limited and Tristone Capital Limitedare Energy XXI listing brokers in the United Kingdom.  In the United States, BMO Capital Markets, Collins Stewart, Dahlman Rose & Co., Jefferies & Company, Natixis Bleichroeder and Sterne Agee & Leach, Inc. are market makers.To learn more, visit the Energy XXI website at www.energyxxi.com.

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ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED BALANCE SHEETS

(In Thousands, except share information)

	March 31,		June 30,
	2008		2007
	(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	3,066	$	19,784
Accounts receivable
Oil and natural gas sales		95,613		55,763
Joint interest billings		25,488		14,377
Insurance and other		2,548		958
Prepaid expenses and other current assets		17,691		21,870
Deferred income taxes		30,258		—
Royalty deposits		4,548		2,175
Derivative financial instruments		—		17,131
Total Current Assets		179,212		132,058
Property and Equipment, net of accumulated depreciation, depletion, and amortization
Oil and natural gas properties - full cost method of accounting		1,529,845		1,491,685
Other property and equipment		8,494		3,097
Total Property and Equipment		1,538,339		1,494,782
Other Assets
Debt issuance costs, net of accumulated amortization		17,973		20,986
Deferred income taxes		2,724		—
Derivative financial instruments		—		616
Total Other Assets		20,697		21,602
Total Assets	$	1,738,248	$	1,648,442

LIABILITIES
Current Liabilities
Accounts payable	$	68,592		$	79,563
Advances from joint interest partners		5,053			2,026
Accrued liabilities		57,469			33,459
Deferred income taxes		—			1,044
Derivative financial instruments		95,268			1,480
Note payable		3,323			—
Current maturities of long-term debt		4,188			5,508
Total current liabilities		233,893			123,080
Long-term debt, less current maturities		1,066,377			1,045,511
Deferred income taxes		—			14,788
Asset retirement obligations		64,304			63,364
Derivative financial instruments		68,435			4,573
Total Liabilities		1,433,009			1,251,316
Commitments and Contingencies
Stockholders’ Equity
Preferred stock, $0.01 par value, 2,500,000 shares authorized and no shares issued at March 31, 2008 and June 30, 2007		—			—
Common stock, $0.001 par value, 400,000,000 shares authorized and 84,511,906 and 84,203,444 issued and outstanding at March 31, 2008 and June 30, 2007, respectively		84			84
Additional paid-in capital		363,285			363,206
Retained earnings		49,721			31,072
Accumulated other comprehensive income (loss), net of tax		(107,851	)		2,764
Total Stockholders’ Equity		305,239			397,126
Total Liabilities and Stockholders’ Equity	$	1,738,248		$	1,648,442

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ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, except per share information)

(Unaudited)

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2008			2007			2008			2007
Revenues
Oil sales	$	103,627		$	42,777		$	284,522		$	121,882
Natural gas sales		63,510			34,831			179,948			100,686
Total Revenues		167,137			77,608			464,470			222,568
Costs and Expenses
Lease operating expense		38,342			16,351			103,078			43,819
Production taxes		1,755			1,691			4,987			2,909
Depreciation, depletion and amortization		75,268			28,600			223,927			88,055
Accretion of asset retirement obligation		1,911			877			5,660			2,619
General and administrative expense		4,912			5,733			16,327			16,324
Loss (gain) on derivative financial instruments		2,700			(1,552	)		2,656			(3,110	)
Total Costs and Expenses		124,888			51,700			356,635			150,616
Operating Income		42,249			25,908			107,835			71,952
Other Income (Expense)
Interest income		348			307			1,249			1,599
Interest expense		(26,058	)		(12,646	)		(79,688	)		(39,653	)
Total Other Income (Expense)		(25,710	)		(12,339	)		(78,439	)		(38,054	)
Income Before Income Taxes		16,539			13,569			29,396			33,898
Provision for Income Taxes		6,252			3,988			10,747			11,976
Net Income	$	10,287		$	9,581		$	18,649		$	21,922
Earnings Per Share
Basic	$	0.12		$	0.11		$	0.22		$	0.26
Diluted	$	0.12		$	0.11		$	0.22		$	0.26
Weighted Average Number of Common Shares Outstanding
Basic		84,141			84,049			84,139			83,893
Diluted		84,141			84,049			85,259			83,893

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ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2008			2007			2008			2007
Cash Flows From Operating Activities
Net income	$	10,287		$	9,581		$	18,649		$	21,922
Adjustments to reconcile net income to net cash  provided by (used in) operating activities:
Deferred income tax expense		6,252			3,988			10,747			11,976
Change in derivative financial instruments		1,319			4,114			811			10,505
Accretion of asset retirement obligations		1,911			877			5,660			2,619
Depletion, depreciation, and amortization		75,268			28,600			223,927			88,055
Amortization and write-off of debt issuance costs		1,114			325			3,688			5,998
Common stock issued to Directors for services		—			—			67			—
Changes in operating assets and liabilities
Accounts receivable		(14,247	)		28,769			(48,142	)		35,807
Prepaid expenses and other current assets		20,676			(13,334	)		1,806			(39,501	)
Accounts payable and other liabilities		9,901			13,326			20,122			21,385
Net Cash Provided by Operating Activities		112,481			76,246			237,335			158,766
Cash Flows from Investing Activities
Acquisitions		(8,569	)		—			(38,935	)		(302,481	)
Capital expenditures		(62,784	)		(130,587	)		(234,002	)		(250,951	)
Proceeds from the sale of oil and natural gas properties		—			—			—			1,400
Other		(102	)		573			(135	)		1,333
Net Cash Used in Investing Activities		(71,455	)		(130,014	)		(273,072	)		(550,699	)
Cash Flows from Financing Activities
Proceeds from the issuance of common stock - net		—			108			32			13,167
Proceeds from long-term debt		21,000			65,000			204,135			364,000
Payments on long-term debt		(69,024	)		(10,000	)		(180,159	)		(24,625	)
Payments on put financing		(1,419	)		(2,011	)		(4,294	)		(7,030	)
Debt issuance costs		—			—			(675	)		(4,754	)
Other		(17	)		(407	)		(20	)		(1,037	)
Net Cash Provided by (Used in) Financing Activities		(49,460	)		52,690			19,019			339,721
Net Increase (Decrease) in Cash and Cash Equivalents		(8,434	)		(1,078	)		(16,718	)		(52,212	)
Cash and Cash Equivalents, beginning of period		11,500			11,255			19,784			62,389
Cash and Cash Equivalents, end of period	$	3,066		$	10,177		$	3,066		$	10,177

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ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED OPERATING RESULTS

(In Thousands, except per unit amounts)(Unaudited)

	Quarter Ended
	Mar. 31, 2007			June 30, 2007		Sept. 30,  2007			Dec. 31, 2007			Mar. 31, 2008
															Twelve Months Ended Mar. 31, 2008
Operating Revenues	$	77,608		$	118,716	$	143,608		$	153,725		$	167,137		$	583,186
Operating Expenses
Lease operating expense
Insurance expense		4,866			2,489		4,832			4,812			4,642			16,775
Workover and maintenance		1,910			5,532		5,720			4,489			5,447			21,188
Direct lease operating expense		9,575			17,145		20,141			24,742			28,253			90,281
Total lease operating expense		16,351			25,166		30,693			34,043			38,342			128,244
Production taxes		1,691			686		1,960			1,272			1,755			5,673
DD&A		28,600			57,873		73,253			75,406			75,268			281,800
General and administrative		5,733			10,183		5,771			5,644			4,912			26,510
Other – net		(675	)		1,545		2,802			903			4,611			9,861
Total operating expenses		51,700			95,453		114,479			117,268			124,888			452,088
Operating Income	$	25,908		$	23,263	$	29,129		$	36,457		$	42,249		$	131,098
Sales Volumes per Day
Natural gas (MMcf)		42.1			60.0		83.5			78.1			73.3			73.7
Crude oil (MBbls)		7.5			10.9		12.3			13.0			13.9			12.5
Total (MBOE)		14.5			20.9		26.2			26.0			26.1			24.8
Average Sales Price
Natural gas per Mcf	$	7.77		$	7.78	$	5.83		$	7.48		$	9.25		$	7.51
Hedge gain per Mcf		1.43			0.80		1.46			0.93			0.28			0.89
Total natural gas per Mcf	$	9.20		$	8.58	$	7.29		$	8.41		$	9.53		$	8.40
Crude oil per Bbl	$	56.24		$	67.46	$	79.19		$	90.71		$	100.10		$	85.44
Hedge gain (loss) per Bbl		7.36			5.21		(1.52	)		(12.68	)		(18.20	)		(7.59	)
Total crude oil per Bbl	$	63.60		$	72.67	$	77.67		$	78.03		$	81.90		$	77.85
Hedge gain (loss) per BOE	$	7.95		$	5.03	$	3.94		$	(3.56	)	$	(8.92	)		(1.18	)
Operating Revenues per BOE	$	59.54		$	62.53	$	59.63		$	64.24		$	70.33		$	64.25
Operating Expenses per BOE
Lease operating expense
Insurance expense		3.73			1.31		2.00			2.01			1.95			1.85
Workover and maintenance		1.47			2.91		2.38			1.88			2.29			2.33
Direct lease operating expense		7.34			9.03		8.36			10.34			11.89			9.95
Total lease operating expense		12.54			13.25		12.74			14.23			16.13			14.13
Production taxes		1.30			0.36		0.81			0.53			0.74			0.63
DD&A		21.94			30.48		30.42			31.51			31.67			31.05
General and administrative		4.40			5.37		2.40			2.36			2.07			2.92
Other – net		(0.52	)		0.82		1.16			0.38			1.94			1.08
Total operating expenses		39.66			50.28		47.53			49.01			52.55			49.81
Operating Income per BOE	$	19.88		$	12.25	$	12.10		$	15.23		$	17.78		$	14.44

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ENERGY XXI (BERMUDA) LIMITED

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(In Thousands, except per share information)

(Unaudited)

As required under Regulation G of the Securities Exchange Act of 1934, provided below are reconciliations of net income to the following non-GAAP financial measures: EBITDA and discretionary cash flow.  The company uses these non-GAAP measures as key metrics for the management of the company and to demonstrate the company’s ability to internally fund capital expenditures and service debt.  The non-GAAP measures are useful in comparisons of oil and gas exploration and production companies as they exclude non-operating fluctuations in assets and liabilities.

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2008		2007		2008		2007
Net Income as Reported	$	10,287	$	9,581	$	18,649	$	21,922
Total other (income) expense		25,710		12,339		78,439		38,054
Depreciation, depletion and amortization		75,268		28,600		223,927		88,055
Provision for income taxes		6,252		3,988		10,747		11,976
EBITDA	$	117,517	$	54,508	$	331,762	$	160,007
EBITDA Per Share
Basic	$	1.40	$	0.65	$	3.94	$	1.91
Diluted	$	1.40	$	0.65	$	3.89	$	1.91
Weighted Average Number of Common Shares Outstanding
Basic		84,141		84,049		84,139		83,893
Diluted		84,141		84,049		85,259		83,893
Net Income as Reported	$	10,287	$	9,581	$	18,649	$	21,922
Deferred income tax expense		6,252		3,988		10,747		11,976
Change in derivative financial instruments		1,319		4,114		811		10,505
Accretion of asset retirement obligations		1,911		877		5,660		2,619
Depletion, depreciation, and amortization		75,268		28,600		223,927		88,055
Amortization and write-off of debt issuance costs		1,114		325		3,688		5,998
Common stock issued to Directors for services		—		—		67		—
Discretionary Cash Flow	$	96,151	$	47,485	$	263,549	$	141,075

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ENERGY XXI (BERMUDA) LIMITED

SUMMARY OF HEDGE POSITIONS AS OF APRIL 30, 2008

Natural Gas (000 MMBTU)											Crude Oil (000 BBL)
					Average											Average
Qtr		Instrument	Volume		Sub		Floor		Cap		Qtr		Instrument	Volume		Sub		Floor		Cap
	Q408	Swaps		1,150				8.86		8.86		Q408	Swaps		217				79.66		79.66
		3 Way Collars		460		5.67		7.41		10.10			3 Way Collars		66		54.09		67.21		78.61
		Collars		264				7.96		10.49			Collars		60				65.47		76.36
		Puts		40				8.00					Puts		10				60.00
		Put Spreads		450		6.00		8.00
	Q109	Swaps		3,020				8.90		8.90		Q109	Swaps		676				82.60		82.60
		3 Way Collars		1,340		5.66		7.38		10.11			3 Way Collars		205		54.12		67.44		78.99
		Collars		744				7.97		10.46			Collars		55				60.00		78.00
		Puts		120				8.00					Puts		27				60.00
		Put Spreads		1,280		6.00		8.00
	Q209	Swaps		2,450				8.82		8.82		Q209	Swaps		472				78.88		78.88
		3 Way Collars		1,250		5.63		7.34		10.12			3 Way Collars		184		54.02		67.40		79.09
		Collars		685				7.97		10.43			Collars		162				70.28		96.67
		Puts		110				8.00					Puts		26				60.00
		Put Spreads		1,170		6.00		8.00
	Q309	Swaps		2,080				8.46		8.46		Q309	Swaps		325				70.85		70.85
		3 Way Collars		1,040		6.00		8.09		9.97			3 Way Collars		170		53.94		67.24		78.94
		Collars		302				7.72		9.96			Collars		233				76.74		107.25
	Q409	Swaps		1,830				8.46		8.46		Q409	Swaps		303				70.86		70.86
		3 Way Collars		930		6.00		8.10		9.96			3 Way Collars		137		53.69		67.37		79.66
		Collars		289				7.73		9.91			Collars		220				76.67		107.17
	Q110	Swaps		1,770				8.47		8.47		Q110	Swaps		277				70.97		70.97
		3 Way Collars		820		6.00		8.11		9.96			3 Way Collars		111		53.38		67.52		80.49
		Collars		137				8.00		8.85			Collars		211				76.58		107.07
	Q210	Swaps		1,580				8.47		8.47		Q210	Swaps		257				71.01		71.01
		3 Way Collars		740		6.00		8.12		9.95			3 Way Collars		87		52.93		67.70		81.64
		Collars		137				8.00		8.85			Collars		201				76.51		106.99
	Q310	Swaps		1,700				8.12		8.12		Q310	Swaps		238				70.86		70.86
		3 Way Collars		490		6.00		8.12		9.95			3 Way Collars		68		52.35		67.35		82.05
													Collars		190				76.53		104.76
	Q410	Swaps		1,500				8.12		8.12		Q410	Swaps		215				70.89		70.89
		3 Way Collars		460		6.00		8.20		9.92			3 Way Collars		60		52.00		67.00		82.04
													Collars		174				76.49		104.68
	Q111	Swaps		1,380				8.12		8.12		Q111	Swaps		193				70.93		70.93
		3 Way Collars		440		6.00		8.20		9.92			3 Way Collars		52		51.54		66.54		82.03
													Collars		156				76.48		104.66
	Q211	Swaps		1,280				8.12		8.12		Q211	Swaps		171				70.96		70.96
		3 Way Collars		420		6.00		8.21		9.91			3 Way Collars		45		50.95		65.95		82.02
													Collars		146				76.50		104.69

Includes production for June 2008 and later; Quarters based on June 30 fiscal year-end

All prices are weight-averaged by contract volume

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FY 2008 3rd Quarter Operations Report

EXXI Fiscal 3rd Quarter 2008 Drilling Results
	Exploration		Development		Total
	Gross	Net	Gross	Net	Gross	Net
Operated
Oil	0	0	1	1	1	1
Gas	0	0	0	0	0	0
Dry	0	0	0	0	0	0
Non-Operated
Oil	0	0	0	0	0	0
Gas	2	0.85	0	0	2	0.85
Dry	2	0.64	0	0	2	0.64
Total	4	1.49	1	1	5	2.49
	Exploration		Development		Total
Success Rates	50%	57%	100%	100%	60%	74%
	Exploration		Development		Total
Onshore	4		0		1
Offshore	0		1		4
Total	4		1		5

Gulf Of Mexico Shelf Highlights

South Timbalier 21 (100% WI)

South Timbalier 21 net production averaged 8,549 BOE/d during the fiscal third quarter, an increase of almost 1,400 BOE/d net from the previous quarter.  

After working through minor facility obstacles, the Beaujolais (ST 21 #138) well’s production was stabilized by mid-February and production has been averaging 1,700 BOE/d net from the D-15 and D-18 sands.

The Sangria (ST 27 #D-13ST2) development well commenced production during February at a peak rate of 1,200 BOE/d net from the D-7 Stray sand.

The #135 well was recompleted through tubing to the D-10 sand during February and initially produced at a rate of 490 BOE/d net.

The #75ST well was recompleted through tubing to the S-4A sand during January and initially produced at a rate of 570 BOE/d net.

The Cabernet (#89 ST) well was recently reworked to restore production from the lower D-7 sand.  The initial net rate was 334 BOE/d.

Acquired Pogo Properties

The Gulf of Mexico shelf properties acquired in June 2007 from Pogo Producing Company averaged 9,598 BOE/d net during the fiscal third quarter. After completing MMS compliance work and getting the properties released from MMS probation in the previous quarter, the first rig program was initiated in the third quarter, along with some non-rig workovers.  Activity in the field temporarily interrupted some production volumes.

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The Ensco 82 rig arrived at Main Pass 61-B in early February.  The recompletion of well #B-1 was successful, resulting in 600 BOE/d net of new production starting late March.  The #B-6 development well was spud in late March and is expected to come online in May.  Also in the fiscal third quarter, 550 BOE/d net was added at MP 73 as a result of a successful non-rig workover.

The Ensco 82 rig will move to the Main Pass 61-A platform in May to drill and complete the MP 60 #A-9 exploratory well and change out tubing in the MP 62 #A-4.  This rig is then expected to spud the Main Pass 147 #1 development well near the end of June.  Two additional rigs are expected to arrive in May and June to begin well work at MP 61-C and MP 126.

           In Lease Sale 206, Energy XXI was high bidder on five blocks adjacent to the South Pass 49 field.  Following facility upgrades, including replacement of separation and compression units, gas lift optimization and acid stimulations on four D-69/D-70 sand wells are planned for South Pass 49.

South Louisiana Onshore Highlights

Eugene Island

·   SL 17695 #1 (35% WI) (Comus Prospect), Iberia Parish – spud 12/22/07 with a proposed TD of 13,800’; primary objective wet; secondary target zone, the Cris I sand, deemed commercial; awaiting completion rig.

Cote de Mer

·   McIlhenny #1 (35% WI) (Cote de Mer Prospect), Vermillion Parish – Coastal rig 21 arrived March 13th; sidetracked at approximately 13,000’; preparing to run casing to 15,685’ MD; proposed TD is 21,000’.

Kaplan NW

·   Green & Broussard #1 (100% WI) (Kaplan Prospect), Vermillian Parish – Spud 3/28/08; drilling at about 6,300’ MD toward proposed TD of 18,500’.

Venus

·   SL 19515 #1(50% WI) (Venus Prospect), Cameron Parish – Spud 4/30/08; beginning to drill toward proposed TD of 16,000’.

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Enquiries of the Company

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

Seema Paterson

+44 207 523 8321

spaterson@collins-stewart.com

Pelham PR

James Henderson

+44 207 743 6673

james.henderson@pelhampr.com

Alisdair Haythornthwaite

+44 207 743 6676

alisdair.haythornthwaite@pelhampr.com

GLOSSARY

Barrel – unit of measure for oil and petroleum products, equivalent to 42 U.S. gallons.

BOE – barrels of oil equivalent, used to equate natural gas volumes to liquid barrels at a general conversion rate of 6,000 cubic feet of gas per barrel.

BOE/d – barrels of oil equivalent per day.

Field – an area consisting of a single reservoir or multiple reservoirs all grouped on, or related to, the same individual geological structural feature or stratigraphic condition. The field name refers to the surface area, although it may refer to both the surface and the underground productive formations.

FTP – flowing tubing pressure.

MBOE – thousand barrels of oil equivalent.

MMBOE – million barrels of oil equivalent.

MD – measured depth.

Net Pay – cumulative hydrocarbon-bearing formations.

Spud – to begin drilling a well.

TD – target total depth of a well.

TD’d – to finish drilling a well.

TVD – total vertical depth.

Workover – operations on a producing well to restore or increase production. A workover may be performed to stimulate the well, remove sand or wax from the wellbore, to mechanically repair the well, or for other reasons.

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