Exhibit 99.1

Energy XXI Reports Fiscal Second-Quarter Results

And Provides Operational Update

Acquisition, capital raises and debt exchange strengthen operations and financial position

Davy Jones discovery portends reserves and production growth

HOUSTON – Feb. 1, 2010 – Energy XXI (Bermuda) Limited (NASDAQ: EXXI) (AIM: EXXI) today announced fiscal second-quarter results for the period ended Dec. 31, 2009 and provided an operational update.

For the 2010 fiscal second quarter, Energy XXI reported earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) of $66.3 million, compared with $68.8 million in the 2009 fiscal second quarter.  Net income for the 2010 fiscal second quarter was $16.4 million ($0.46 per share – diluted) on revenues of $124.5 million and production of 20,900 barrels of oil equivalent per day (BOE/d), with an average of 35.8 million shares (diluted) outstanding for the period, adjusted for the recently effected reverse split.  These results reflect a partial contribution from the company’s Dec. 22, 2009 acquisition of certain Gulf of Mexico interests. The results also include a $17.8 million after-tax ($26.7 million pre-tax) non-cash gain due to the retirement of bonds previously repurchased at a discount to face value.  In the 2009 fiscal second quarter, the company had a net loss of $429.2 million, or $14.88 per share (reverse-split-adjusted), on revenues of $106.9 million and production of 19,200 BOE/d.  The 2009 fiscal second-quarter loss included a $415.5 million after-tax ceiling test impairment ($459.1 million pre-tax).

“The past four months have been the most momentous period in the company’s history,” Energy XXI Chairman and CEO John Schiller said.  “In November, we completed a bond exchange offer that reduced the face amount of our debt by $69 million, completed a private placement of new bonds and common shares to further strengthen the balance sheet, and announced a major acquisition that increased our proved reserves and daily production more than 40 percent. We closed the acquisition in just 30 days, following an equity road show in December that raised a total of $276 million after expenses.  Those accomplishments were followed in January by the Davy Jones discovery, which has the potential to be a very significant discovery for Energy XXI.  Between the expanded producing-property portfolio and the success of our ultra-deep-shelf exploration program, we expect to increase future capital programs while still targeting further debt reduction with free cash flow.  We look to the future with continued excitement.”

Production Update

Production volumes in January 2010 averaged approximately 23,000 BOE/d, positively affected by the December acquisition of Gulf of Mexico interests, partially offset by temporary shut-ins caused by a number of factors, including third-party-pipeline outages and dredging operations conducted by the U.S. Corps of Engineers.  Current production approximates 26,000 BOE/d, with the capacity to produce 27,500 BOE/d.  Following restoration of hurricane-affected properties, expected within a month, production capacity is expected to exceed 30,000 BOE/d.

Ultra-Deep Shelf Update

Energy XXI is funding 14.1 percent of the exploratory costs to earn a 15.8 percent working interest and 12.6 percent net revenue interest at the ultra-deep Davy Jones prospect at South Marsh Island Block 230 on the Gulf of Mexico shelf, offshore Louisiana.  This McMoRan-operated well, which is in 20 feet of water, has been declared a major discovery with a combined 200 net feet of hydrocarbon-bearing pay sands.  After being drilled to 28,603 feet, logging and coring operations were completed and drilling has resumed, toward a proposed total depth of 29,000 feet.

Capital Expenditures

During the first half of fiscal 2010, capital expenditures totaled $64.7 million, excluding acquisition costs, with $13.6 million in exploration and $51.1 million in development and other investments.

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 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 located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore.  Collins Stewart Europe Limited and Macquarie Capital (Europe) Limited are Energy XXI listing brokers in the United Kingdom.  To learn more, visit the Energy XXI website at www.energyXXI.com.

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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						Six Months Ended
	December 31,						December 31,
	2009			2008			2009		2008
Net Income (Loss) as Reported	$	16,446		$	(429,203	)	$	4,146	$	(433,854	)
Total other (income) expense		(3,313	)		19,064			15,663		40,035
Impairment of oil and gas properties		—			459,109			—		459,109
Depreciation, depletion and amortization		44,972			65,002			80,323		127,411
Income tax expense (benefit)		8,206			(45,194	)		17,453		(48,045	)
EBITDA	$	66,311		$	68,778		$	117,585	$	144,656
EBITDA Per Share (1)
Basic	$	1.96		$	2.39		$	3.74	$	5.01
Diluted	$	1.85		$	2.39		$	3.60	$	5.01
Weighted Average Number of Common Shares Outstanding (1)
Basic		33,788			28,835			31,470		28,896
Diluted		35,815			28,835			32,627		28,896

(1) Data adjusted for the Jan. 28, 2010 1-for-5 reverse stock split

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ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED BALANCE SHEETS

(In Thousands, except share information)

	December 31,			June 30,
	2009			2009
ASSETS	(Unaudited)
Current Assets
Cash and cash equivalents	$	23,270		$	88,925
Accounts receivable
Oil and natural gas sales		68,924			40,087
Joint interest billings		7,353			17,624
Insurance and other		14,069			2,562
Prepaid expenses and other current assets		37,611			16,318
Royalty deposit		1,638			1,746
Derivative financial instruments		24,567			31,404
Total Current Assets		177,432			198,666
Property and equipment, net of accumulated depreciation, depletion, amortization and impairment
Oil and natural gas properties - full cost method of accounting		1,365,977			1,102,596
Other property and equipment		8,259			9,149
Total Property and Equipment – net		1,374,236			1,111,745
Other Assets
Derivative financial instruments		6,435			3,838
Restricted cash		2,160			—
Debt issuance costs, net of accumulated amortization		12,251			14,413
Total Other Assets		20,846			18,251
Total Assets	$	1,572,514		$	1,328,662
LIABILITIES
Current Liabilities
Accounts payable	$	74,219		$	81,025
Note payable		6,549			—
Accrued liabilities		43,671			36,180
Asset retirement obligations		85,733			66,244
Derivative financial instruments		19,551			15,732
Current maturities of long-term debt		3,865			4,107
Total Current Liabilities		233,588			203,288
Long-term debt, less current maturities, face value of $766,367,000 and $858,720,000
at December 31, 2009 and June 30, 2009, respectively		815,664			858,720
Deferred income taxes		32,189			26,889
Asset retirement obligations		86,935			77,955
Derivative financial instruments		507			4,818
Other		—			29,492
Total Liabilities		1,168,883			1,201,162
Commitments and Contingencies
Stockholders’ Equity
Preferred stock, $0.01 par value, 2,500,000 shares authorized and 1,100,000 shares and no shares
issued and outstanding at December 31, 2009 and June 30, 2009, respectively		11			—
Common stock, $0.005 par value, 200,000,000 shares authorized and 50,819,323 and 29,283,051
shares issued and 50,804,389 and 29,150,116 shares outstanding at
December 31, 2009 and June 30, 2009, respectively		253			146
Additional paid-in capital		899,494			604,724
Accumulated deficit		(512,053	)		(515,867	)
Accumulated other comprehensive income, net of income taxes		15,926			38,497
Total Stockholders’ Equity		403,631			127,500
Total Liabilities and Stockholders’ Equity	$	1,572,514		$	1,328,662

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ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except per share information)

(Unaudited)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2009			2008			2009			2008
Revenues
Oil sales	$	98,050		$	66,668		$	164,343		$	148,730
Natural gas sales		26,456			40,184			45,070			77,866
Total Revenues		124,506			106,852			209,413			226,596
Costs and Expenses
Lease operating expense		35,050			37,564			60,475			72,562
Production taxes		1,007			1,878			2,282			3,914
Impairment of oil and gas properties		—			459,109			—			459,109
Depreciation, depletion and amortization		44,972			65,002			80,323			127,411
Accretion of asset retirement obligations		6,160			2,433			11,306			4,894
General and administrative expense		14,022			6,236			22,088			12,471
Loss (gain) on derivative financial instruments		1,956			(10,037	)		(4,323	)		(11,901	)
Total Costs and Expenses		103,167			562,185			172,151			668,460
Operating Income (Loss)		21,339			(455,333	)		37,262			(441,864	)
Other Income (Expense)
Other income		27,658			2,104			29,644			3,438
Interest expense		(24,345	)		(21,168	)		(45,307	)		(43,473	)
Total Other Income (Expense)		3,313			(19,064	)		(15,663	)		(40,035	)
Income (Loss) Before Income Taxes		24,652			(474,397	)		21,599			(481,899	)
Income Tax Expense (Benefit)		8,206			(45,194	)		17,453			(48,045	)
Net Income (Loss)		16,446			(429,203	)		4,146			(433,854	)
Preferred Stock Dividends		332			—			332			—
Net Income (Loss) Available for Common Stockholders	$	16,114		$	(429,203	)	$	3,814		$	(433,854	)
Earnings (Loss) Per Share(1)
Basic	$	0.48		$	(14.88	)	$	0.12		$	(15.01	)
Diluted	$	0.46		$	(14.88	)	$	0.13		$	(15.01	)
Weighted Average Number of Common Shares Outstanding(1)
Basic		33,788			28,835			31,470			28,896
Diluted		35,815			28,835			32,467			28,896

(1) Data adjusted for the Jan. 28, 2010 1-for-5 reverse stock split

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ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2009			2008			2009			2008
Cash Flows From Operating Activities
Net income (loss)	$	16,446		$	(429,203	)	$	4,146		$	(433,854	)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Deferred income tax expense (benefit)		8,206			(45,910	)		17,453			(48,761	)
Change in derivative financial instruments		(4,759	)		(8,520	)		(17,115	)		(9,862	)
Accretion of asset retirement obligations		6,160			2,433			11,306			4,894
Depreciation, depletion, and amortization		44,972			65,002			80,323			127,411
Impairment of oil and gas properties		—			459,109			—			459,109
Amortization of deferred gain on debt		(29,024	)		(1,148	)		(30,867	)		(1,466	)
Amortization and write-off of debt issuance costs		3,341			988			4,459			2,000
Stock-based compensation		839			602			1,742			865
Changes in operating assets and liabilities
Accounts receivable		(53,661	)		(460	)		(38,385	)		53,608
Prepaid expenses and other current assets		(14,489	)		14,028			(21,185	)		(12,706	)
Asset retirement obligations		(32,615	)		(7,004	)		(42,449	)		(13,484	)
Accounts payable and other liabilities		(10,389	)		(25,472	)		(7,149	)		(32,254	)
Net Cash Provided by (Used in) Operating Activities		(64,973	)		24,445			(37,721	)		95,500
Cash Flows from Investing Activities
Acquisitions		(274,518	)		—			(274,518	)		—
Capital expenditures		(37,670	)		(94,761	)		(47,811	)		(180,884	)
Insurance payments received		45,199			—			53,178			—
Restricted cash		(1,634	)		—			(2,160	)		—
Other		46			(255	)		134			(255	)
Net Cash Used in Investing Activities		(268,577	)		(95,016	)		(271,177	)		(181,139	)
Cash Flows from Financing Activities
Proceeds from the issuance of common and preferred stock, net of offering costs		294,527			—			294,527			—
Dividends to shareholders		—			(1,453	)		—			(1,453	)
Proceeds from long-term debt		75,837			105,239			75,837			249,990
Payments on long-term debt		(118,782	)		(2,320	)		(123,443	)		(152,403	)
Purchase of bonds		—			(32,563	)		—			(91,355	)
Other		(2,063	)		(401	)		(3,678	)		(868	)
Net Cash Provided by Financing Activities		249,519			68,502			243,243			3,911
Net Decrease in Cash and Cash Equivalents		(84,031	)		(2,069	)		(65,655	)		(81,728	)
Cash and Cash Equivalents, beginning of period		107,301			89,303			88,925			168,962
Cash and Cash Equivalents, end of period	$	23,270		$	87,234		$	23,270		$	87,234

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ENERGY XXI (BERMUDA) LIMITED

CONSOLIDATED OPERATIONAL INFORMATION (In thousands) (Unaudited)

	Dec. 31, 2009			Sept. 30, 2009			June 30, 2009			Mar. 31, 2009			Dec. 31, 2008
Operating revenues
Crude oil sales	$	93,974		$	58,114		$	58,920		$	46,492		$	53,388
Natural gas sales		16,812			9,770			15,168			20,435			33,111
Hedge gain (loss)		13,720			17,023			27,010			39,209			20,353
Total revenues		124,506			84,907			101,098			106,136			106,852
Percent of operating revenues from crude oil
Prior to hedge gain (loss)		84.8	%		85.6	%		79.5	%		69.5	%		61.7	%
Including hedge gain (loss)		78.8			78.1	%		70.8	%		68.3	%		62.4	%
Operating expenses
Lease operating expense
Insurance expense		7,827			5,954			4,356			4,980			4,934
Workover and maintenance		2,678			3,231			4,622			341			7,094
Direct lease operating expense		24,545			16,240			15,646			19,643			25,536
Total lease operating expense		35,050			25,425			24,624			24,964			37,564
Production taxes		1,007			1,275			(51	)		1,587			1,878
Impairment of oil and gas properties		—			—			—			117,887			459,109
Depreciation, depletion and amortization		44,972			35,351			39,744			50,052			65,002
General and administrative		14,022			8,066			6,168			6,117			6,236
Other – net		8,116			(1,133	)		3,852			7,643			(7,604	)
Total operating expenses		103,167			68,984			74,337			208,250			562,185
Operating income (loss)	$	21,339		$	15,923		$	26,761		$	(102,114	)	$	(455,333	)
Sales volumes per day
Natural gas (MMcf)		40.7			33.2			41.1			49.2			54.4
Crude oil (MBbls)		14.2			10.0			11.9			12.5			10.1
Total (MBOE)		20.9			15.5			18.7			20.7			19.2
Percent of sales volumes from crude oil		67.6	%		64.5	%		63.6	%		60.4	%		52.7	%
Average sales price
Natural gas per Mcf	$	4.49		$	3.20		$	4.06		$	4.62		$	6.62
Hedge gain per Mcf		2.58			2.90			3.85			2.98			1.41
Total natural gas per Mcf	$	7.07		$	6.10		$	7.91		$	7.60		$	8.03
Crude oil per Bbl	$	72.17		$	63.44		$	54.56		$	41.40		$	57.38
Hedge gain per Bbl		3.13			8.93			11.68			23.16			14.27
Total crude oil per Bbl	$	75.30		$	72.37		$	66.24		$	64.56		$	71.65
Total hedge gain per BOE	$	7.12		$	11.95		$	15.86		$	21.07		$	11.54
Operating revenues per BOE	$	64.65		$	59.59		$	59.36		$	57.04		$	60.57
Operating expenses per BOE
Lease operating expense
Insurance expense		4.06			4.18			2.56			2.68			2.79
Workover and maintenance		1.39			2.27			2.71			0.18			4.02
Direct lease operating expense		12.74			11.40			9.19			10.56			14.48
Total lease operating expense		18.19			17.85			14.46			13.42			21.29
Production taxes		0.52			0.89			(0.03	)		0.85			1.06
Impairment of oil and gas properties		—			—			—			63.35			260.26
Depreciation, depletion and amortization		23.35			24.81			23.34			26.90			36.85
General and administrative		7.28			5.66			3.62			3.29			3.54
Other – net		4.22			(0.80	)		2.27			4.11			(4.31	)
Total operating expenses		53.56			48.41			43.66			111.92			318.69
Operating income (loss) per BOE	$	11.09		$	11.18		$	15.70		$	(54.88	)	$	(258.12	)

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GLOSSARY

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

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

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.

MBOE – thousand barrels of oil equivalent.

MMBOE – million barrels of oil equivalent.

MD – measured depth.

Net Pay – cumulative hydrocarbon-bearing formations.

Net Revenue Interest – the percentage of production revenue allocated to the working interest after first deducting proceeds allocated to royalty and overriding interest.

Spud – to begin drilling a well.

TD – target total depth of a well.

TD’d – to finish drilling a well.

TVD – total vertical depth.

Working Interest – the interest held in lands by virtue of a lease, operating agreement, fee title or otherwise, under which the owner of the interest is vested with the right to explore for, develop, produce and own oil, gas or other minerals and bears the proportional cost of such operations.

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

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

Piers Coombs, Stewart Wallace

+44 207 523 8350

pcoombs@collinsstewart.com

Pelham Bell Pottinger

James Henderson

+44 207 743 6673

jhenderson@pelhambellpottinger.co.uk

Mark Antelme

+44 203 178 6242

mantelme@pelhambellpottinger.co.uk

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