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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF LOUISIANA In re: CASE NO. 11-13028 VIRGIN OFFSHORE USA, INC. SECTION A Involuntary Debtor CHAPTER 11 ****************************************************************************** OBJECTION OF CENTURY EXPLORATION NEW ORLEANS, LLC TO FIRST AMENDED CHAPTER 11 PLAN OF REORGANIZATION DATED MARCH 28, 2013 PROPOSED BY GERALD H. SCHIFF, CHAPTER 11 TRUSTEE FOR THE ESTATE OF VIRGIN OFFSHORE USA, INC. NOW INTO COURT, through undersigned counsel, comes Century Exploration New Orleans, LLC f/k/a Century Exploration New Orleans, Inc. (Century Exploration) , a creditor and party in interest in the above-captioned case, which objects to the First Amended Chapter 11 Plan of Reorganization [P-402] (Plan) proposed by Gerald H. Schiff (Trustee), Chapter 11 Trustee for the Bankruptcy Estate of Virgin Offshore USA, Inc. (Debtor), for the following reasons: 1. Century Exploration and the Trustee are parties to various executory contracts, including, but not limited to, a Joint Development Agreement and an Offshore Operating Agreement, pertaining to the exploration, development, production and operation of certain submerged lands offshore from the State of Louisiana known as the Ship Shoal area. Century Exploration is the Operator under these agreements. 2. Shortly after assuming his position as Trustee of this estate, the Trustee authorized the payment of on-going, post petition joint interest billings (JIB) pertaining to the operations of Century Exploration in the Ship Shoal area from the proceeds of production attributable to the Debtors interests. Such JIB payments are apparently current.

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3. The proposed Plan seems to provide for the assumption of these executory contracts but does not provide for adequate assurance of future performance of obligations owed by the Trustee, namely payment of plugging and abandonment (P&A) expenses. Section 365 (b)(1)(C) of the U.S.

Bankruptcy Code requires such adequate assurance as a condition of assumption of the contracts. 4. No assumption of the executory contracts has yet occurred. Although the First Amended Disclosure Statement in Support of Chapter 11 Plan of Reorganization Dated March 28, 2013 [P401] (Disclosure Statement) implies that escrow payments for P&A expenses began at the start of the year 2013, counsel for Century Exploration has been unable to verify the existence of such funds or account(s) despite repeated requests to counsel for the Trustee. 5. Attached to this Objection, as Exhibit 1, is the most recent estimate by Century Exploration of the total P&A liability of the parties to the Ship Shoal agreements. The Debtors share of future liability for P&A of currently producing wells totals roughly $613,000.00. 6. The Debtors Plan and Disclosure Statement seem to say that the amount of $40,000.00 will be put into an escrow account for the Debtors P&A liability for currently producing wells. Century Exploration shows that this commitment is insufficient to provide the required adequate assurance of future performance in two (2) respects: 1) it fails to provide that the funds will be secured for the obligations referenced; and, 2) the amount is insufficient given the current estimate of the Debtors P&A liability.

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7. The Trustees Plan does not provide for the payment of expenses attributable to the liability of for P&A of wells which have ceased production. The Debtors share of expenses in the Ship Shoal area for these wells as shown on Exhibit 1 is currently estimated at roughly $414,000.00. 8. The Bankruptcy Code also requires the prompt cure of defaults under the contracts as a condition of assumption. The Plan and the Disclosure Statement are ambiguous as to the treatment of the prepetition default owed to Century Exploration totaling $141,870.06. The Plan states that Cure Claims which are not opposed by the Trustee will be paid on the Effective Date. However, Exhibit F to the Disclosure Stateme nt which is the Debtors Operating Budget indicates that the payments will be made through seven monthly installments of $20,000.00. Century Exploration shows that such installment payments would not be a prompt cure. 9. The executory contracts between the Trustee and Century Exploration cannot be assumed without the provision of adequate assurance of future performance and prompt cure of defaults. If they are not assumed, Century Exploration will exercise its security interests in the Trustees rights, titles and interests in mineral rights pertaining to the Ship Shoal area to insure the timely payment of obligations arising from operations, including, but not limited to, P&A liability. The exercise of these rights by Century Exploration will interrupt the cash flow of the Debtor and render the Plan unfeasible. Denial of confirmation for lack of feasibility is supported by the case of The Matter of TH New Orleans Ltd. Partnership, 116 F3d 790 (5th Cir. 1997).

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WHEREFORE, Century Exploration New Orleans, LLC f/k/a Century Exploration New Orleans, Inc. prays that the First Amended Chapter 11 Plan of Reorganization [P-402] proposed by Gerald H. Schiff, Chapter 11 Trustee for the Bankruptcy Estate of Virgin Offshore USA, Inc., be denied and for such other relief as may be just under the case.

Respectfully submitted; STEFFES, VINGIELLO & McKENZIE, LLC By: /s/ Arthur A. Vingiello___________________ ARTHUR A. VINGIELLO (LA Bar #13098) 13702 Coursey Blvd., Building 3 Baton Rouge, Louisiana 70817 Telephone: (225) 751-1751 Facsimile: (225) 751-1998 E-mail: avingiello@steffeslaw.com Attorneys for Century Exploration New Orleans, LLC f/k/a Century Exploration New Orleans, LLC

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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF LOUISIANA In re: CASE NO. 11-13028 VIRGIN OFFSHORE USA, INC. SECTION A Involuntary Debtor CHAPTER 11 ****************************************************************************** CERTIFICATE OF SERVICE I HEREBY CERTIFY that a copy of the above and foregoing OBJECTION OF CENTURY EXPLORATION NEW ORLEANS, LLC TO FIRST AMENDED CHAPTER 11 PLAN OF REORGANIZATION DATED MARCH 28, 2013 PROPOSED BY GERALD H. SCHIFF, CHAPTER 11 TRUSTEE FOR THE ESTATE OF VIRGIN OFFSHORE USA, INC. has this day been served upon the following parties of interest:
Office of U.S. Trustee Eastern District of Louisiana 400 Poydras Street, Suite 2110 New Orleans, LA 70130 Specialty Rental Tools & Supply, LLC and Sooner Pipe, LLC c/o Albert J. Derbes, IV THE DERBES LAW FIRM, LLC 3027 Ridgelake Drive Metairie, LA 70011-8176 Dynamic Energy Services, LLC c/o Michael A. Crawford Taylor, Porter, Brooks & Phillips, LLP P.O. Box 2471 Baton Rouge, LA 70821-2471 Virgin Offshore USA, Inc. c/o Rick M. Shelby 201 St. Charles Avenue, Ste. 4000 New Orleans, LA 70170-4000 Official Committee of Unsecured Creditors of Virgin Oil Company, Inc. c/o Benjamin Kadden & Stewart F. Peck Lugenbuhl, Wheaton, Peck, Rankin 601 Poydras St., Suite 2775 New Orleans, LA 70130 Precision Drilling, LP c/o H. Kent Aguillard Young, Hoychick and Aguillard P.O. Box 391 Eunice, LA 70535 Helis Oil & Gas Co., LLC c/o J. David Forsyth Sessions, Fishman, Nathan & Israel, LLP 201 St. Charles Ave., Ste. 3815 New Orleans, LA 70170 Virgin Offshore USA, LLC c/o Douglas S. Draper & Tristan Manthey Heller, Draper, Hayden, Patrick & Horn, LLC 650 Poydras Street, Ste. 2500 New Orleans, LA 70130-6103 Tanner Services, LLC c/o Jacque B. Pucheu, Jr. Pucheu, Pucheu & Robinson, LLP P.O. Box 1109 Eunice, LA 70535

by depositing same in the U.S. mail, postage prepaid, and properly addressed. I HEREBY FUTHER CERTIFY that a copy has also been served upon the following parties by electronic notice via the Courts CM/ECF system:
H. Kent Aguillard, kaguillard@yhalaw.com Brent B. Barriere, barrier@phelps.com Raymond A. Beyt, rab@beytlaw.com Frederick L. Bunol, fbunol@derbeslaw.com, dharvey@derbeslaw.com Jeffrey M. Burmaster, jburmaster@kingkrebs.com

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Christopher T. Caplinger, ccaplinger@lawla.com, treeves@lawla.com Jeffery D. Carruth, jcarruth@wkpz.com Leo D. Congeni, leocongeni@bellsouth.net Michael A. Crawford, mike.crawford@taylorporter.com Albert J. Derbes, ajdiv@derbeslaw.com, jbourdeaux@derbeslaw.com Carl Dore, carldore@doreassociates.com, kevin@doreassociates.com Steven G. Durio, durio@dmsfirm.com, bsandoz@dmsfirm.com Stanwood R. Duval, stan@duvallawfirm.com J. David Forsyth, jdf@sessions-law.com Tanya N. Garrison, tgarrison@wkpz.com Mark S. Goldstein, mgoldstein@lowestein.com, abendana@lowestein.com Robert C. Gravolet, Robert.Gravolet@usdoj.gov, Adaline.L.Patterson@usdoj.gov Thomas G. Gruenert, tgruenert@ggzlawfirm.com, kkeeling@ggzlafirm.com George B. Jurgens, gjurgens@kingkrebs.com, gchristian@kingkrebs.com Benjamin Kadden, bkadden@lawla.com Omar F. Kuebel, nobankecf@lockeliddell.com Dewey H. Lane, dewlane@gmail.com Armistead M. Long, along@gordonarata.com, sroberts@gordonarata.com Mark Mintz, mmintz@joneswalker.com, sliberio@joneswalker.com Louis M. Phillips, lphillips@gordonarata.com Patricia Williams Prewitt, pwp@pattiprewittlaw.com Jacque B. Pucheu, jacque@pprlaw.com, jvienne@pprlaw.com Ryan J. Richmond, rrichmond@gordonarata.com E. Kathleen Shahan, kathie.shahan@usdoj.gov Patrick M. Shelby, pshelby@gordonarata.com Paul N. Temple, pntemple@energycapllc.com Thomas J. Smith, tsmith@gjtbs.com, crose@gjtbs.com, chickman@gjtbs.com Office of the U.S. Trustee, USTPRegion5.NR.ECF@usdoj.gov Dennis J. Vidrine, dennisv@vidrinelaw.com David F. Waguespack, Waguespack@carverdarden.com, docket@carverdarden.com, plaisanace@carverdarden.com Guy E. Wall, gwall@wallbulling.com, melon@wallbulling.com Kristin N. Wallis, kwallis@csj-law.com, lderry@csj-law.com Timothy A. York, tyork@qsclpc.om

Baton Rouge, Louisiana this 12th day of June, 2013.

______/s/ Chad E. Biggs_____ CHAD E. BIGGS

Respectfully Submitted by: Arthur A. Vingiello (#13098) Steffes, Vingiello & McKenzie, LLC 13702 Coursey Blvd., Building #3 Baton Rouge, Louisiana 70817 Telephone: (225) 751-1751 Facsimile: (225) 751-1998 E-mail: avingiello@steffeslaw.com Attorneys for Century Exploration New Orleans, LLC f/k/a Century Exploration New Orleans, Inc.