Mariner Energy 8-K Mariner Energy Reports 25% Increase in 2007 Production and 222% Reserve Replacement

Exhibit 99.1

For Immediate Release:	For further information, contact:
	Jaime F. Brito
	ir@mariner-energy.com
	(713) 954-5558

Mariner Energy Reports 25% Increase in 2007 Production and 222% Reserve Replacement

Management Provides Guidance for 2008 and Outlines Record 2008 Capital Program

Houston, TX – February 22, 2008, Mariner Energy, Inc. (NYSE: ME) today announced full-year 2007 results which include the following highlights:

• Net production increases 25% to 100.3 Bcfe

• Net income increases 19% to $143.9 million

• Estimated year-end proved reserves up 17% to 835.8 Bcfe

• 222% reserve replacement rate from all sources

• All-in reserve replacement cost of $3.49 per Mcfe

FOURTH QUARTER 2007 RESULTS

Fourth quarter 2007 net income was $50.2 million, compared to $43.2 million (including a non-cash hedging gain of $6.6 million) for the fourth quarter 2006. Basic and fully-diluted earnings per share (EPS) for the fourth quarter 2007 was $0.59 and $0.58, respectively, compared to $0.51 basic and $0.50 fully-diluted EPS in the fourth quarter of 2006.

Net production for the fourth quarter of 2007 was 27.1 billion cubic feet of natural gas equivalents (Bcfe), compared to 26.0 Bcfe for the fourth quarter 2006. Total natural gas net production for the fourth quarter 2007 was 18.4 billion cubic feet (Bcf), compared to 18.2 Bcf for the fourth quarter 2006. Total oil net production for the fourth quarter 2007 was 1.1 million barrels (MMBbls), compared to 1.0 MMBbls for the same period in 2006. Natural gas liquids (NGL) net production for the fourth quarter 2007 was 0.3 MMBbls, unchanged from the fourth quarter 2006.

For the fourth quarter 2007, Mariner’s average realized natural gas price was $8.07 per thousand cubic feet (Mcf), compared to $7.82 per Mcf for the same period in 2006. Mariner’s average realized oil price was $79.64 per barrel (Bbl) for the fourth quarter 2007, compared to $63.67 per Bbl for the same period in 2006. The fourth quarter 2007 average realized NGL price was $55.32 per Bbl, compared to $48.73 per Bbl for the fourth quarter 2006. Average realized prices reflect settlements during the period under Mariner’s hedging program.

FULL-YEAR 2007 RESULTS

Mariner reported full-year 2007 net income of $143.9 million, representing a 19% increase over net income of $121.5 million reported in 2006. Basic EPS was $1.68 for 2007 versus $1.59 in 2006. Fully-diluted EPS was $1.67 for 2007 versus $1.58 in 2006. Operating cash flow was $622.6 million for the year 2007, up 27% from 2006 (see reconciliation of this non-GAAP measure below). For the full-year 2007, Mariner reported net production of 100.3 Bcfe, compared to 80.5 Bcfe for 2006. This represents a 25% increase year-over-year. Total natural gas net production during 2007 was 67.8 Bcf at an average realized price of $7.88 per Mcf, compared to 56.1 Bcf for 2006 at an average realized price of $7.37 per Mcf.

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Total oil net production during 2007 was 4.2 MMBbls at an average realized price of $67.50 per Bbl, compared to 3.2 MMBbls during 2006 at an average realized price of $62.63 per Bbl. Total NGL net production during 2007 was 1.2 MMBbls at an average realized price of $45.16 per Bbl, compared to 0.8 MMBbls during 2006 at an average realized price of $48.37 per Bbl. Average realized prices reflect settlements during the period under Mariner’s hedging program.

Mariner’s capital expenditures for the fourth quarter and full-year 2007 are summarized in the table below. These amounts include $16.4 million of hurricane-related plugging and abandonment expense accounted for as capital investment but for which Mariner plans to submit claims for insurance reimbursement.

	Fourth		Full-
	Quarter		Year
	2007		2007
	(In Millions)
Exploration
Gulf of Mexico – Deepwater	$	22.8	$	64.1
Gulf of Mexico – Shelf		18.1		93.8
MMS Lease Sale 205 (4 of 23 blocks awarded)		4.7		4.7
Geologic & Geophysical/Leasehold/Rentals		16.0		44.2
	$	61.6	$	206.8
Development
Gulf of Mexico – Deepwater	$	25.7	$	160.1
Gulf of Mexico – Shelf		66.5		227.6
West Texas		20.6		60.9
	$	112.8	$	448.6
Acquisitions/Dispositions/Other	$	119.9	$	118.8
Capitalized Items	$	7.9	$	15.9
Total Capital Expenditures	$	302.2	$	790.1

YEAR-END 2007 ESTIMATED PROVED RESERVES

Mariner ended 2007 with estimated proved reserves of 835.8 Bcfe, compared to 715.5 Bcfe at year end 2006. This represents a 17% increase in estimated proved reserves year-over-year. Mariner’s year-end estimated proved reserves were fully engineered by the independent engineering firm of Ryder Scott Company, L.P. Mariner achieved a reserve replacement rate of 222% from all sources, including acquisitions and divestitures, at an all-in reserve replacement cost of $3.49 per Mcfe. For a description of the calculations of reserve replacement rate and reserve replacement cost, please see the notes below regarding “Reserve replacement rate” and “Reserve replacement cost.” Of the 2007 year-end estimated proved reserves, 67.5% are proved developed, 46.3% are oil and NGLs, and 46.5% are in West Texas, versus 57.1%, 40.4%, and 35.9%, respectively, at year-end 2006.

The following table sets forth certain information with respect to our estimated proved reserves by geographic area as of December 31, 2007. Reserve volumes and values were determined under the method prescribed by the Securities & Exchange Commission (SEC) which requires the application of period-end prices and costs held constant throughout the projected reserve life. Proved reserve estimates do not include any value for probable or possible reserves which may exist, nor do they include any value for undeveloped acreage. The proved reserve estimates represent Mariner’s net revenue interest in its properties. Mariner uses the U.S. Minerals Management Service’s 1300-foot deepwater designation to differentiate its shelf and deepwater areas of operation.

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Estimated Proved Reserve Quantities

									% of Total
	Natural								Estimated
	Gas		Oil		NGLs		Total		Proved
Geographic Area	(Bcf)		(MMBbls)		(MMBbls)		(Bcfe)		Reserves
West Texas		116.2		25.2		20.3		388.7		46.5
Gulf of Mexico — Deepwater		86.2		5.9		0.1		122.9		14.7
Gulf of Mexico — Shelf		246.0		10.8		2.2		324.2		38.8
Total		448.4		41.9		22.6		835.8		100.0
Proved developed reserves		326.1		25.1		14.5		563.9		67.5

Commenting on Mariner’s 2007 results, Scott D. Josey, Mariner’s Chairman, Chief Executive Officer and President stated: “With the excellent reserve replacement cost and double-digit growth in production, net income, operating cash flow and reserves, Mariner turned in a successful year in 2007 by all measures. With the commencement of first production at Northwest Nansen and Bass Lite, the closing of the StatoilHydro transaction, and our lease sale awards, we have laid the groundwork for a promising 2008.”

OPERATIONAL UPDATE

Offshore

Mariner was successful in 17 of its 25 offshore wells drilled in 2007. Mariner drilled four offshore wells in the fourth quarter 2007, two of which were successful:

					Water
		Working			Depth
Well Name	Operator	Interest			(Ft)		Location
High Island 131#B1ST1	Gryphon		25	%		40	Deep Shelf
Eugene Island 342#C15	Mariner		50	%		266	Conventional Shelf

Since January 1, 2008, Mariner has drilled three offshore wells, all of which were successful:

					Water
		Working			Depth
Well Name	Operator	Interest			(Ft)		Location
Vermilion 380 A20	Mariner		100	%		320	Conventional Shelf
Vermilion 380 A20ST1	Mariner		100	%		320	Conventional Shelf
Eugene Island 342#C16	Mariner		50	%		266	Conventional Shelf

Currently, two offshore wells are drilling.

Additionally, two deepwater development projects, Bass Lite and Northwest Nansen, began producing in February 2008.

Bass Lite is a two-well project located in a water depth of approximately 6,750 feet in Atwater Valley Block 426 and connected by a 56-mile subsea tie back to the Devils Tower spar.  The current gross production rate of approximately 60 million cubic feet of gas equivalent per day is presently limited by the production system designed to achieve early production while further system upgrades of the topside facilities continue.  The project is expected to produce at full capacity later in 2008, once the topside facilities work has been completed.  Mariner operates Bass Lite and has a 42.2% working interest in the project.  

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The Northwest Nansen project consists of four wells located in a water depths of approximately 3,500 feet in East Breaks Blocks 558 and 602 that are connected by subsea tie backs to the Nansen spar. The East Breaks 558 well was completed as a gas well and the three East Breaks 602 wells as oil wells. The field is currently producing from the gas well and one of the oil wells at a combined gross daily rate of 57 million cubic feet of natural gas and 7000 barrels of natural gas liquids. Production from the project is expected to increase in the next few days as the remaining oil wells are brought online. Mariner holds a 50% working interest in the well at East Breaks 558 and a 33% working interest in the three wells at East Breaks 602. Northwest Nansen is operated by Anadarko Petroleum Corp.

2008 GUIDANCE

Below is Mariner’s guidance for 2008. Factors that could materially affect the company’s actual results are noted below in the forward-looking statements section of this release.

Production.Mariner estimates that its full-year 2008 production will range from 130.0 Bcfe to 140.0 Bcfe. This represents an increase of between 30% and 40% over 2007 full-year production of 100.3 Bcfe.

Capital Expenditures.Mariner’s 2008 capital program is anticipated to be the largest in its history, including approximately 28 exploration wells and 4 development wells. The base operating capital program is $757 million, with significant potential expansion contingent upon drilling success and cash flows. The program is summarized in the table below. These amounts exclude $42 million of hurricane-related repairs and plugging and abandonment expense with respect to which Mariner plans to submit claims for insurance reimbursement. Also excluded are 2008 acquisitions which have totaled $247 million since January 1, 2008.

	Full-Year 2008
	CAPEX Plan
	(In Millions)
Exploration
Gulf of Mexico – Deep Water	$	151
Gulf of Mexico – Shelf		116
West Texas		10
MMS Lease Sale 205		54
MMS Lease Sale 206		40
Geologic & Geophysical/Leasehold/Rentals		28
	$	399
Development
Gulf of Mexico – Deepwater	$	56
Gulf of Mexico – Shelf		183
West Texas		90
	$	329
Capitalized Items	$	29
Total Capital Expenditures	$	757

Scott D. Josey elaborated on Mariner’s 2008 capital program, stating: “Consistent with Mariner’s balanced strategy, our 2008 capital program involves a diverse portfolio of projects ranging from deepwater subsalt exploratory tests to development drilling in West Texas. Depending upon our success, we may have opportunities to increase the size of our capital program, but we believe we have built in sufficient flexibility to allow us to operate within our cash flows and pay down debt, especially in light of planned shelf asset divestitures and expected insurance recoveries during the year.”

Cost Structure.Mariner expects its full-year 2008 unit costs to fall within the following ranges:

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	Lower		Upper
	Estimate		Estimate
	($ per Mcfe)
Lease operating expense (including workovers)	$	1.55	$	1.65
Severance and ad valorem taxes		0.11		0.15
Transportation expense		0.11		0.15
Depreciation, depletion & amortization (including asset retirement obligation expense)		3.90		4.20
Net general and administrative expense (excluding stock compensation expense)		0.25		0.35
Stock compensation expense		0.08		0.12

CONFERENCE CALL TO DISCUSS RESULTS

A conference call has been scheduled for 10:00 a.m. Eastern Time (9:00 a.m. Central Time) on Friday, February 22, 2008, to discuss 2007 reserves and operational results and 2008 guidance. To participate in the call, please dial (866) 831-6270 at least 10 minutes prior to the scheduled start time. International callers can dial (617) 213-8858. The conference pass code for both numbers is 49486865. The call also will be webcast live over the internet and can be accessed through the Investor Relations’ Webcasts and Presentations section of Mariner’s website at www.mariner-energy.com.

A telephonic replay of the call will be available through March 3, 2008 by dialing (888) 286-8010, pass code 18863256. An archive of the webcast will be available shortly after the call through March 31, 2008 on Mariner’s website.

About Mariner Energy, Inc.

Mariner Energy, Inc. is an independent oil and gas exploration, development and production company headquartered in Houston, Texas, with principal operations in the Gulf of Mexico and West Texas. For more information about Mariner, please visit its website atwww.mariner-energy.com.

For further information, contact:

Jaime F. Brito, Director, Investor Relations
ir@mariner-energy.com
(713) 954-5558

IMPORTANT INFORMATON CONCERNING FORWARD-LOOKING STATEMENTS
AND CERTAIN STATISTICS

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, that address activities that Mariner assumes, plans, expects, believes, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future, including our guidance estimates, are forward-looking statements. Our forward-looking statements are generally accompanied by words such as “may”, “will”, “estimate”, “project”, “predict”, “believe”, “expect”, “anticipate”, “potential”, “plan”, “goal”, or other words that convey the uncertainty of future events or outcomes. The forward-looking statements provided in this press release are based on the current belief of Mariner based on currently available information as to the outcome and timing of future events and assumptions that Mariner believes are reasonable. Mariner does not undertake to update its guidance estimates as conditions change or as additional information becomes available and there can be no assurance that any of the guidance estimates can or will be achieved. Estimated reserves are related to hydrocarbon prices. Hydrocarbon prices in effect at December 31, 2007 were used in the preparation of the reserve estimates provided above as required by SEC guidelines. Actual future prices may vary significantly from the December 31, 2007 prices. Therefore, volumes of reserves actually recovered may differ significantly from such estimates. Mariner cautions that its forward-looking statements are subject to all of the risks and uncertainties normally incident to the exploration for and development, production and sale of oil and natural gas. These risks include, but are not limited to, price volatility or inflation, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating future oil and gas production or reserves, and other risks described in the Annual Report on Form 10-K for the fiscal year ended December 31, 2006, and other documents filed by Mariner with the SEC. Any of these factors could cause the actual results and plans of Mariner to differ materially from those in the forward-looking statements. Investors are urged to read the Annual Report on Form 10-K for the year ended December 31, 2006 and other documents filed by Mariner with the SEC. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Mariner.

Note on reserve replacement rate:Mariner’s reserve replacement rates reported above were calculated by dividing total estimated proved reserve changes for the period from all sources, including acquisitions and divestitures, by production for the same period. The method Mariner uses to calculate its reserve replacement rate may differ from methods used by other

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companies to compute similar measures. As a result, its reserve replacement rate may not be comparable to similar measures provided by other companies.

Note on reserve replacement cost:Reserve replacement cost is calculated by dividing development, exploitation, exploration and acquisition capital expenditures, reduced by proceeds of divestitures, for the period by net estimated proved reserve additions for the period from all sources, including acquisitions and divestitures. Our calculation of reserve replacement cost includes costs and reserve additions related to the purchase of proved reserves. The methods we use to calculate our reserve replacement cost may differ significantly from methods used by other companies to compute similar measures. As a result, our reserve replacement cost may not be comparable to similar measures provided by other companies. We believe that providing a measure of reserve replacement cost is useful in evaluating the cost, on a per-Mcfe basis, to add proved reserves. However, this measure is provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with generally accepted accounting principles. Due to various factors, including timing differences in the addition of proved reserves and the related costs to develop those reserves, reserve replacement costs do not necessarily reflect precisely the costs associated with particular reserves. As a result of various factors that could materially affect the timing and amounts of future increases in reserves and the timing and amounts of future costs, we cannot assure you that our future reserve replacement costs will not differ materially from those presented.

Reconciliation of Non-GAAP Measure: Operating Cash Flow

Operating cash flow (OCF) is not a financial or operating measure under generally accepted accounting principles in the United States of America (GAAP). The table below reconciles OCF to related GAAP information. Mariner believes that OCF is a widely accepted financial indicator that provides additional information about its ability to meet its future requirements for debt service, capital expenditures and working capital, but OCF should not be considered in isolation or as a substitute for net income, operating income, net cash provided by operating activities or any other measure of financial performance presented in accordance with GAAP or as a measure of a company’s profitability or liquidity.

	December 31,		December 31,
	2007		2006
	(In Thousands)
Cash flow from operating activities (GAAP)	$	536,113	$	277,161
Changes in assets and liabilities		86,497		213,217
Operating cash flow (non-GAAP)	$	622,610	$	490,378

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COMPARATIVE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED DECEMBER 31, 2007 AND 2006

MARINER ENERGY, INC.
SELECTED OPERATIONAL RESULTS
(Unaudited)

Net Production, Realized Pricing and Operating Costs

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2007		2006		2007		2006
Net production:
Natural gas (Bcf)		18.4		18.2		67.8		56.1
Oil (MMBbls)		1.1		1.0		4.2		3.2
Natural gas liquids (MMBbls)		0.3		0.3		1.2		0.8
Total production (Bcfe)		27.1		26.0		100.3		80.5
Realized prices (net of hedging):
Natural gas ($/Mcf)	$	8.07	$	7.82	$	7.88	$	7.37
Oil ($/Bbl)		79.64		63.67		67.50		62.63
Natural gas liquids ($/Bbl)		55.32		48.73		45.16		48.37
Operating costs per Mcfe:
Lease operating expense	$	1.57	$	1.11	$	1.52	$	1.14
Severance and ad valorem taxes		0.15		0.13		0.13		0.11
Transportation expense		0.12		0.04		0.09		0.06
General and administrative expense		0.40		0.32		0.41		0.41
Depreciation, depletion and amortization		3.71		3.84		3.83		3.63
Other expense		0.04		0.03		0.06		0.01

Estimated Proved Reserves

	As of the Year Ended			As of the Year Ended
	December 31, 2007			December 31, 2006
Estimated proved natural gas, oil and natural gas liquids reserves:
Natural gas (Bcf)		448.4	��		426.7
Oil (MMBbls)		41.9			32.0
Natural gas liquids (MMBbls)		22.6			16.1
Total estimated proved reserves (Bcfe)		835.8			715.5
Total proved developed reserves (Bcfe)		563.9			408.7

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COMPARATIVE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED DECEMBER 31, 2007 AND 2006

MARINER ENERGY, INC.
STATEMENT OF OPERATIONS
(In Thousands, except earnings per share amounts)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2007			2006			2007			2006
Revenues:
Natural gas sales	$	148,468		$	142,658		$	534,537		$	412,967
Oil sales		87,434			61,642			284,405			202,744
Natural gas liquids sales		19,313			15,928			54,192			40,507
Other revenues		(1,620	)		886			1,591			3,287
Total revenues		253,595			221,114			874,725			659,505
Cost and Expenses:
Lease operating expense		42,474			28,730			152,593			91,592
Severance and ad valorem taxes		4,138			3,359			13,101			9,070
Transportation expense		3,268			1,046			8,788			5,077
General and administrative expense		10,954			8,322			41,126			33,372
Depreciation, depletion and amortization		100,531			99,958			384,321			292,180
Other expense		976			744			6,086			744
Total costs and expenses		162,341			142,159			606,015			432,035
OPERATING INCOME		91,254			78,955			268,710			227,470
Interest:
Income		406			499			1,403			985
Expense, net of capitalized amounts		(14,442	)		(13,257	)		(54,665	)		(39,649	)
Minority interest expense		(1	)		—			(1	)		—
Other income/(expense)		753			—			5,811			—
Income before taxes		77,970			66,197			221,258			188,806
Provision for income taxes		(27,729	)		(22,959	)		(77,324	)		(67,344	)
NET INCOME	$	50,241		$	43,238		$	143,934		$	121,462
Earnings per share:
Net income per share-basic	$	0.59		$	0.51		$	1.68		$	1.59
Net income per share-diluted	$	0.58		$	0.50		$	1.67		$	1.58
Weighted average shares outstanding-basic		85,745			85,499			85,645			76,353
Weighted average shares outstanding-diluted		86,277			85,750			86,126			76,810

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MARINER ENERGY, INC.
BALANCE SHEET
(In Thousands)
(Unaudited)

	December 31,			December 31,
	2007			2006
Current Assets
Cash and cash equivalents	$	18,589		$	9,579
Receivables, net of allowances		157,774			149,692
Insurance receivables		26,683			61,001
Derivative financial instruments		11,863			54,488
Intangible assets		17,209			20,835
Prepaid expenses and other		10,995			10,788
Deferred tax asset		6,355			—
Total current assets		285,646			306,383
Property and equipment (net)		2,420,194			2,012,062
Restricted cash		5,000			31,830
Goodwill		295,598			288,504
Intangible assets		—			4,000
Insurance receivables		56,924			—
Derivative financial instruments		691			17,153
Other Assets, Net of Amortization		55,883			20,221
TOTAL ASSETS	$	3,083,758		$	2,680,153
Current Liabilities
Accounts payable	$	1,064		$	1,822
Accrued liabilities		96,936			74,880
Accrued capital costs		159,010			99,028
Deferred income tax		—			26,857
Abandonment liability		30,985			29,660
Accrued interest		7,726			7,480
Derivative financial instruments		19,468			—
Total current liabilities		315,189			239,727
Long-Term Liabilities
Abandonment liability		191,021			188,310
Deferred income tax		344,071			262,888
Derivative financial instruments		25,343			—
Long-term debt		779,000			654,000
Minority interest of consolidated subsidiary		1			—
Other long-term liabilities		38,115			32,637
Total long-term liabilities		1,377,551			1,137,835
Stockholders’ Equity
Common stock and additional paid-in capital		1,054,098			1,043,932
Accumulated other comprehensive income/(loss)		(22,576	)		43,097
Accumulated retained earnings		359,496			215,562
Total stockholders’ equity		1,391,018			1,302,591
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,083,758		$	2,680,153

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MARINER ENERGY, INC.
SELECTED CASH FLOW INFORMATION
(In Thousands)
(Unaudited)

	Twelve Months Ended December 31,
	2007			2006
Operating cash flow (1)	$	622,610		$	490,378
Changes in operating assets and liabilities		(86,497	)		(213,217	)
Net cash provided by operating activities	$	536,113		$	277,161
Net cash used in investing activities	$	(643,779	)	$	(561,390	)
Net cash provided by financing activities	$	116,676		$	289,252
Increase in cash and cash equivalents	$	9,010		$	5,023

(1) See above for reconciliation of this non-GAAP measure.

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