Energy XXI Gulf Coast, Inc. has approved a 2018 capital expenditure budget in the range of $145 million to $175 million, which includes funding of EGC's most active drilling program since 2014, as well as recompletions, facilities improvements, plugging and abandonment (P&A) expenditures and other capital investments.

Highlights include:

• Anticipates total 2018 capital expenditures between $145 million to $175 million
• Planned investment of $65 million to $75 million in drilling new wells and recompletions, $10 to $15 million in facilities improvements and $50 million to $60 million in P&A expenditures
• Program anticipates drilling six wells focused in EGC's core areas in West Delta and South Timbalier
• Three of the wells in the program are "proved undeveloped (PUD) reserve" locations; one well will be a water injector well; and two of the wells planned for the second half of 2018 are exploitation locations that could add proved reserves if successful
• Contracted a jack-up rig that is scheduled to begin drilling in late February

Douglas E. Brooks, EGC's Chief Executive Officer and President commented,
"I am pleased that our Board has approved a 2018 capital budget that should better position EGC for success in 2018 and beyond. Improving oil prices and a review of our drilling inventory have increased our ability to initiate our most active drilling program since 2014. We are focused on moving forward with implementing our strategic plan, which includes getting back to drilling. We have contracted a rig that is scheduled to begin drilling our six-well program in late February that will be concentrated in our core central Gulf of Mexico region. The program includes three low-risk development locations; a water injection well to optimize production in the West Delta area; and two exploitation locations that could have a meaningful impact on production and proved reserves if successful. With our operations team striving to drive down costs and enhance production, we expect to efficiently and effectively maintain our focus on operating safely and in an environmentally sensitive manner. We believe that we are well-positioned to participate in future existing Gulf of Mexico operations and potential consolidations due to our very substantial asset base, which includes large legacy fields, an attractive drilling inventory, and extensive facility infrastructure."

2018 Budget

EGC forecasts 2018 total capital expenditures to be between $145 and $175 million. This includes $55 million to $65 million related to drilling six new wells, $10 million to $15 million for facility upgrades and optimization, and $8 million to $10 million for seven to nine recompletions. The Company has contracted the White Fleet "WFD 350" jackup rig to drill wells in the West Delta and South Timbalier areas. Drilling operations are expected to begin in late February and continue through 2018. In addition to drilling, the Company also plans to spend between $50 million and $60 million on P&A projects and between $18 million and $22 million on capitalized general and administrative costs and the balance on seismic and other.