Capex Data
The 2008 capital budget, excluding acquisitions, is expected to be approximately $260 million, or 40 percent lower than the prior year.
Of the $260 million 2008 budget, approximately $137 million is allocated to exploration and $120 million to development activity. The company also has agreed to acquire $40 million of producing properties, $36 million of which are related to the exercise of a preferential right for onshore Louisiana properties recently purchased by a joint venture partner.
Future Plans
The Group has succeeded in delivering on its stated strategy of acquiring producing assets with near term upside potential. This is already generating material returns through a combination of rapidly increasing production and strong commodity prices. The existing portfolio holds significant development and exploration upside, positioned in mature, large and high quality fields. Alongside the aggressive exploitation of their assets Energy XXI plan to continue to grow by acquisition using their cash flow and debt facilities to acquire producing assets with near term upside in new regions.