TEXT-S&P release on Energy XXI (Bermuda) Ltd

(The following statement was released by the ratings agency)

April 18 - Standard & Poor's Ratings Services said today that it revised
its outlook on oil and gas exploration and production company Energy XXI
(Bermuda) Ltd. to positive from stable and affirmed its 'CCC+' corporate credit
rating on the company.

"The outlook revision reflects the progress Energy XXI has made integrating
properties acquired from Pogo Producing Co. in June 2007, which has helped
improve operating results," said Standard & Poor's credit analyst Paul Harvey.

The positive outlook also acknowledges the benefits to earnings and cash
flow over the near term that come from the currently strong hydrocarbon price
environment. During first half of fiscal 2008, Energy XXI's production averaged
about 26,000 barrels per day, which is a 61% increase over average production
for fiscal year ended June 30, 2007. Energy XXI should also continue to have
solid reserve replacement while repaying debt.
(New York Ratings Team)