Endeavour Announces First Quarter 2011 Financial and Operational Results

By Endeavour International Corporation, PRNE
Tuesday, May 3, 2011

HOUSTON, May 4, 2011 - Endeavour International Corporation (NYSE: END) (LSE: ENDV) today
reported adjusted EBITDA for the first quarter of 2011 was $4.1 million
compared to $9.7 million in the first quarter of 2010. On a GAAP basis, net
loss was $(7.5) million for the first quarter of 2011 as compared to $(15.2)
for the same quarter in 2010.

"Since the beginning of the year, Endeavour has achieved several major
milestones with respect to its development programs in the United Kingdom and
continued to progress its growing U.S. portfolio. The deployment of
infrastructure for the Bacchus oil field moves the project closer to first
production this year while our agreement on the commercial terms for the
Rochelle development allows us to begin construction of the production
facilities necessary to bring additional gas production on line in 2012,"
said William L. Transier, chairman, chief executive officer and president.
"The successful conclusion of our equity offering during the quarter and the
subsequent redemption of our 6% Senior Notes is a significant step in our
financial plan, positioning the company to further simplify its capital
structure and deliver production growth in 2011 and beyond."

Highlights since the beginning of the year include:

Executed a Successful Equity Offering and Redeemed the 6% Senior Notes -
The Company completed a public equity offering of 11.5 million shares of its
common stock at a price of $11.00 per share for total proceeds of $116.8
, net of underwriting fees and expenses. The offering closed on March
29, 2011
. Endeavour used a portion of the net proceeds from the offering to
redeem all $81.25 million of its 6% Convertible Senior Notes due 2012 on
April 20, 2011.

Achieved Field Development Plan Approval and Agreed to Commercial Terms
with the Scott Platform Owners for Rochelle Production - Endeavour, operator
of the Rochelle field, announced the agreement of commercial terms for the
processing and transportation of East Rochelle production on the Scott
Platform in the Central North Sea. The Field Development Plan for East
calling for the subsea development to be linked by a 30-kilometer
pipeline to production facilities on the Scott platform was approved by the
United Kingdom's Department of Energy and Climate Change in February. First
production from East Rochelle is currently planned for the second half of

Continuing Progress of Bacchus Field Development - The installation of a
6.5 kilometer pipeline connecting the Bacchus field to the Forties Alpha
platform was successfully completed during the quarter. The rig that will
drill the three production wells is expected to move, from its current
position in the Forties Field, to the Bacchus location in May. Production
from the field is currently expected to commence during the third quarter
with a ramp up to peak production toward the end of the year.

On-going Drilling Activity in the U.S. Shale Plays - Endeavour drilled
five wells in its Haynesville and Cotton Valley plays located in Louisiana
and East Texas, respectively. These wells are expected to be completed and
brought on production in the next two months, as the Company continues to
maintain a two-rig program in the area. In the Pennsylvania Marcellus,
Endeavour successfully drilled and cased two horizontal wells in Cameron
. These wells will be completed later this year while efforts continue
to expand the existing pipeline gathering infrastructure.

Amended the Terms of the 11.5% Convertible Bonds - The Company amended
the terms of its 11.5% Convertible Bonds due 2014. The maturity date for the
securities was extended from January 2014 to January 2016 and the interest
rate payable after March 2014 was reduced from 11.5% to 7.5%. The amendment
also moves the date at which the bond holders have the right to demand first
payment and the date at which the conversion price could be reset to market
from the original date of January 2012 to the maturity date of January 2016.

Completed Transfer from the NYSE Amex to the NYSE Main Market - Endeavour
completed its transfer from the NYSE Amex to the NYSE Main Market on March
15, 2011
. The Company continues to trade under the ticker symbol "END" in the
United States

Earnings Conference Call, Wednesday, May 4, 2011 at 9:00 a.m., Central
Daylight Time
, 3:00 p.m. British Summer Time

Endeavour International will host a conference call and web cast to
discuss its 2011 first quarter financial and operating results on Wednesday,
May 4, 2011
at 9 a.m. Central Daylight Time, 3 p.m. British Summer Time. To
participate and ask questions during the conference call, dial the local
country telephone number and the confirmation code 5667933. The toll-free
numbers are 800-776-0087 in the United States and 0-808-101-1402 in the
United Kingdom. Other international callers should dial +1-913-312-1301
(tolls apply). To listen only to the live audio web cast access Endeavour's
home page at www.endeavourcorp.com. A replay will be available
beginning at 12:20 p.m. Central Daylight Time on May 4 through 12:20 p.m. on
May 11 by dialing toll free 888-203-1112 (U.S.) or +1-719-457-0820
(international), confirmation code 5667933.

Endeavour International Corporation is an oil and gas exploration and
production company focused on the acquisition, exploration and development of
energy reserves in the North Sea and the United States. For more information,
visit endeavourcorp.com.

Additional information for investors:

Certain statements in this news release should be regarded as
"forward-looking" statements within the meaning of the securities laws. These
statements speak only as of the date made. Such statements are subject to
assumptions, risk and uncertainty. Actual results or events may vary

As of January 1, 2010, the Securities and Exchange Commission (SEC)
changed its rules to permit oil and gas companies, in their filings with the
SEC, to disclose not only proved reserves, but also probable reserves and
possible reserves. Proved oil and gas reserves are those quantities of oil
and gas, which, by analysis of geosciences and engineering data, can be
estimated with reasonable certainty to be economically producible - from a
given date forward, from known reservoirs, and under existing economic
conditions, operating methods, and government regulations - prior to the time
at which contracts providing the right to operate expire. Probable reserves
include those additional reserves that a company believes are as likely as
not to be recovered and possible reserves include those additional reserves
that are less certain to be recovered than probable reserves. We use may use
certain terms in our news releases, such as "reserve potential," that the
SEC's guidelines strictly prohibit us from including in filings with the SEC.
In addition, we do not represent that the probable or possible reserves
described herein meet the recoverability thresholds established by the SEC in
its new definitions. Investors are urged to also consider closely the
disclosure in our filings with the SEC, available from our website at
www.endeavourcorp.com. Endeavour is also subject to the requirements
of the London Stock Exchange and considers the disclosures in this release
to be appropriate and/or required under the guidelines of that exchange.

                  Endeavour International Corporation
                 Condensed Consolidated Balance Sheets
                         (Amounts in thousands)

                                              March 31,          December 31,
                                                 2011                 2010
                                                 ----                 ----

    Current Assets:
      Cash and cash equivalents               $152,146              $99,267
      Restricted cash                           33,072               31,776
      Accounts receivable                        6,922                8,068
      Prepaid expenses and other current
       assets                                    6,547                8,718
      ----------------------------------         -----                -----
        Total Current Assets                   198,687              147,829

    Property and Equipment, Net                444,728              364,677
    Goodwill                                   211,886              211,886
    Other Assets                                22,256               25,895
    ------------                                ------               ------

    Total Assets                              $877,557             $750,287
    ------------                              --------             --------

                    Liabilities and Stockholders' Equity

    Current Liabilities:
      Accounts payable                         $45,138              $32,442
      Current maturities of debt               100,350               21,600
      Accrued expenses and other                20,564               22,642
      --------------------------                ------               ------
        Total Current Liabilities              166,052               76,684

    Long-Term Debt                             244,152              323,706
    Deferred Taxes                              92,604               77,200
    Other Liabilities                           56,839               64,927
    -----------------                           ------               ------
        Total Liabilities                      559,647              542,517

    Commitments and Contingencies

    Series C Convertible Preferred
     Stock                                      53,152               53,152

    Stockholders' Equity                       264,758              154,618
    --------------------                       -------              -------

    Total Liabilities and
     Stockholders' Equity                     $877,557             $750,287
    ---------------------                     --------             --------

                          Endeavour International Corporation
                     Condensed Consolidated Statement of Operations
                     (Amounts in thousands, except per share data)

                                                  Three Months Ended
                                                      March 31,
                                                 2011              2010
                                                 ----              ----
    Revenues                                  $14,104           $13,721

    Cost of Operations:
      Operating expenses                        5,041             2,821
       depletion and
       amortization                             6,323             5,681
      Impairment of oil
       and gas properties                           -             7,692
      General and
       administrative                           4,713             4,431
      ---------------                           -----             -----
      Total Expenses                           16,077            20,625
      --------------                           ------            ------

    Loss From
     Operations                                (1,973)           (6,904)
    -----------                                ------            ------

    Other Income
        Realized gains                              -               232
        Unrealized gains
         (losses)                                4,464           (1,072)
      Interest expense                         (12,523)          (5,636)
      Interest income and
       other                                     (139)            3,024
      -------------------                        ----             -----
    Total Other Expense                        (8,198)           (3,452)
    -------------------                        ------            ------

    Loss Before Income
     Taxes                                   (10,171)           (10,356)
    Income Tax Expense
     (Benefit)                                 (2,714)            4,834
    ------------------                         ------             -----

    Net Loss                                   (7,457)          (15,190)
    Preferred Stock
     Dividends                                    545               589
    ---------------                               ---               ---

    Net Loss to Common
     Stockholders                             $(8,002)         $(15,779)
    ------------------                        -------          --------

    Net Loss per Common Share -Basic and
     Diluted                                   $(0.30)           $(0.74)
    ------------------------------------ ---   ------            ------

    Weighted Average Number of Common
     Shares Outstanding:
      Basic and Diluted                        26,750            21,364
      -----------------                        ------            ------
                          Endeavour International Corporation
                    Condensed Consolidated Statement of Cash Flows
                                (Amounts in thousands)

                                                  Three Months Ended March 31,
                                                     2011               2010
                                                     ----               ----
    Cash Flows from Operating Activities:
      Net loss                                    $(7,457)          $(15,190)
      Adjustments to reconcile net loss to net
        provided by (used in) operating
        Depreciation, depletion and amortization    6,323              5,681
        Impairment of oil and gas properties            -              7,692
        Deferred tax expense (benefit)             (2,182)             3,477
        Unrealized (gains) losses on derivatives   (4,464)             1,072
        Amortization of non-cash compensation         875              1,153
        Amortization of loan costs and discount     3,916              1,528
        Non-cash interest expense                   3,031              1,683
        Other                                       2,602             (3,023)
        Changes in operating assets and
         liabilities                              (18,066)             5,341
        -------------------------------           -------              -----
    Net Cash Provided by (Used in) Operating
     Activities                                   (15,422)             9,414

    Cash Flows From Investing Activities:
      Capital expenditures                        (20,148)           (21,768)
      Acquisitions                                (20,964)           (29,407)
      (Increase) decrease in restricted cash       (1,295)             2,859
      --------------------------------------       ------              -----
    Net Cash Used in Investing Activities         (42,407)           (48,316)

    Cash Flows From Financing Activities:
      (Repayments) borrowings under debt
       agreements                                  (5,400)            25,000
      Proceeds from issuance of common stock      116,822             20,011
      Dividends paid                                 (506)              (550)
      Other financing                                (208)              (923)
      ---------------                                ----               ----
    Net Cash Provided by Financing
     Activities                                   110,708             43,538

    Net Increase in Cash and Cash
     Equivalents                                   52,879              4,636
    Cash and Cash Equivalents, Beginning of
     Period                                        99,267             27,287
    ---------------------------------------        ------             ------

    Cash and Cash Equivalents, End of Period     $152,146            $31,923
    ----------------------------------------     --------            -------

                          Endeavour International Corporation
                                 Operating Statistics

                                                          Three Months Ended
                                                               March 31,
                                                          2011           2010
                                                          ----           ----
    Sales volume (1)
      Oil and condensate sales (Mbbls):
        United Kingdom                                     100            113
        United States                                        2              1
        -------------                                      ---            ---
        Total                                              102            114
        -----                                              ---            ---

      Gas sales (MMcf):
        United Kingdom                                      44            766
        United States                                      965            280
        -------------                                      ---            ---
        Total                                            1,009          1,046
        -----                                            -----          -----

      Oil equivalent sales (MBOE):
        United Kingdom                                     108            241
        United States                                      162             48
        -------------                                      ---            ---
        Total                                              270            289
        -----                                              ---            ---

      Total BOE per day                                  3,001          3,209
      -----------------                                  -----          -----

    Physical production volume (BOE per day): (2)
        United Kingdom                                   1,307          3,118
        United States                                    1,885            578
        -------------                                    -----            ---
        Total                                            3,192          3,696
        -----                                            -----          -----

    Realized Prices (3)
      Oil and condensate price ($ per Bbl):
        Before commodity derivatives                    $98.79         $70.24
        Effect of commodity derivatives                      -         (7.50)
        -------------------------------                    ---          -----
        Realized prices including commodity derivatives $98.79         $62.74
        ----------------------------------------------- ------         ------

      Gas price ($ per Mcf):
        Before commodity derivatives                     $4.00          $5.43
        Effect of commodity derivatives                      -           1.25
        -------------------------------                    ---           ----
        Realized prices including commodity derivatives  $4.00          $6.68
        -----------------------------------------------  -----          -----

      Equivalent oil price ($ per BOE):
        Before commodity derivatives                    $52.22         $47.51
        Effect of commodity derivatives                      -           1.55
        -------------------------------                    ---           ----
        Realized prices including commodity derivatives $52.22         $49.06
        ----------------------------------------------- ------         ------

    (1) We record oil revenues using the sales method, i.e. when delivery has
        occurred. Actual production may differ based on the timing of tanker
        liftings. We use the entitlements method to account for sales of gas
    (2) Physical production may differ from sales volumes based on the timing
        of tanker liftings for our international sales.
    (3) The average sales prices include gains and losses for derivative
        contracts we utilize to manage price risk related to our future cash

                          Endeavour International Corporation
                      Reconciliation of GAAP to Non-GAAP Measures
                                (Amounts in thousands)

     As required under Regulation G of the Securities Exchange Act of
     1934, provided below are reconciliations of net income (loss) to the
     following non-GAAP financial measures:  net income, as adjusted and
     Adjusted EBITDA.  We use these non-GAAP measures as key metrics for
     our management and to demonstrate our ability to internally fund
     capital expenditures and service debt.  The non-GAAP measures are
     useful in comparisons of oil and gas exploration and production
     companies as they exclude non-operating fluctuations in assets and

                                                        Three Months Ended
                                                            March 31,
                                                      2011             2010
                                                      ----             ----
    Net loss                                       $(7,457)        $(15,190)
    Impairment of oil and gas properties (net
     of tax) (1)                                         -            7,692
    Unrealized (gain) loss on derivatives
     (net of tax) (2)                               (5,469)           1,174
    Currency impact on deferred taxes                    -              (59)
    ---------------------------------                  ---              ---

    Net Loss as Adjusted                          $(12,926)         $(6,383)
    --------------------                          --------          -------

    Net loss                                       $(7,457)        $(15,190)

    Unrealized (gain) loss on derivatives           (4,464)           1,072
    Net interest expense                            12,418            5,633
    Depreciation, depletion and amortization         6,323            5,681
    Impairment of oil and gas properties                 -            7,692
    Income tax expense (benefit)                    (2,714)           4,834

    Adjusted EBITDA                                 $4,106           $9,722
    ---------------                                 ------           ------

    (1) Net of tax benefits of none and none, respectively.
    (2) Net of tax (benefit) expense of $(1,005) and $102, respectively.

Investors, Mike Kirksey, +1-713-307-8788, or Darcey Matthews, +1-713-307-8711, both of Endeavour; or UK Media, Philip Dennis, +44 (0)207-861-3919, or Henry Lerwill, +44 (0)207-861-3169, both of Pelham Public Relations, for Endeavour International Corporation

Utilities News

May 4 News

will not be displayed