Energy Partners, Ltd. (“EPL” or the “Company”) (NYSE:EPL) announced today that it was notified by the administrative agent for its bank lending group that the semi-annual re-determination of the borrowing base under its revolving credit facility was performed, resulting in a new borrowing base of $45 million, down from the prior borrowing base of $150 million. The Company currently has $83 million drawn under this facility, which results in a borrowing base deficiency of $38 million. The Company has been in discussions with the bank lender group about potential financial and other covenant breaches that are likely to occur during 2009 under its revolving credit facility.

The Company, along with its recently retained financial advisor, Parkman Whaling LLC, are discussing with the bank lender group the Company’s options to remedy the borrowing base deficiency, as permitted under the credit agreement, as well as discussing amendments to the agreement to provide waivers of compliance with financial and other covenants.

Management anticipates that the report of KPMG LLP, the Company’s independent public accountants, relative to the Company’s 2008 consolidated financial statements will contain an explanatory paragraph indicating substantial doubt about the Company’s ability to continue as a going concern.

The Company also announced several management and governance changes today. First, the Company announced today that its Chairman and Chief Executive Officer, Richard A. Bachmann, has resigned with immediate effect from all of his positions with the Company and its subsidiaries and has stepped down as a member of the Board of Directors (the “Board”).

Second, the Company announced that, as part of its previously announced exploration of strategic alternatives, it has been engaging in discussions with an Ad Hoc Committee representing the holders of a majority of its $450 million principal amount of senior unsecured notes. The Board has formed a Restructuring Committee of the Board, consisting of Jerry Carlisle, Jim Latimer and Bryant Patton, each of whom is an independent member of the Board. The Board has instructed the Restructuring Committee to negotiate with the Ad Hoc Committee regarding the terms of a possible debt for equity exchange that is in the best interest of the Company and acceptable to the senior unsecured noteholders.

Third, the Company announced that it has engaged Alan Bell as the Company’s Chief Restructuring Officer. Until his retirement in June 2006, Mr. Bell was the director of Ernst & Young LLP’s energy practice in the Southwest U.S. area.