EPL Oil & Gas Inc. (NYSE:EPL) announced that it intends to offer $250 million in aggregate principal amount of 8.25% senior unsecured notes due 2018.

The net proceeds from the sale of senior notes will be deposited into escrow pending completion of the company's previously announced acquisition from Hilcorp Energy GOM Holdings LLC of 100% of the issued and outstanding member interests of Hilcorp Energy GOM LLC , which owns certain shallow-water GoM shelf oil and natural gas interests.

Upon release of the net proceeds from escrow at the closing of the Hilcorp acquisition, EPL will use those net proceeds to fund a portion of the purchase price for the Hilcorp acquisition.