Endeavour Announces 2013 First Quarter Financial and Operational Results

   Endeavour Announces 2013 First Quarter Financial and Operational Results

PR Newswire

HOUSTON, May 9, 2013

HOUSTON, May 9, 2013 /PRNewswire/ -- Endeavour International Corporation
(NYSE: END) (LSE: ENDV) today reported first quarter 2013 net loss, as
adjusted of $12.1 million compared to a net loss, as adjusted of $15.4 million
for the same period in 2012. On a GAAP basis, net loss for the first quarter
of 2013 was $14.0 million as compared to net loss of $35.3 million for the
same quarter in 2012.

Sales volumes for the first quarter of 2013 were 7,186 barrels of oil
equivalent per day ("boepd"), compared to 4,174 boepd for the same quarter in
the prior year. First quarter 2013 sales numbers were impacted by the timing
of liftings at the Alba field, where during the period there was only a single
lifting. Physical production for the first quarter of 2013 averaged 9,385
boepd compared to 3,974 boepd for the same quarter of 2012.

Recent Business Highlights:

  oNorth Sea:

       oDrilling of the West Rochelle well remains on schedule, with first
         production expected mid-year 2013
       oThe third production well at Bacchus began drilling in March
       oThe Alba 2013 in-field drilling program commenced
       oThe Centurion South exploration well was drilled to total depth

  oFinance:

       oThe sale of the $107.5 million Monetary Production Payment closed on
         April 30, 2013

  oStrategic Review:

       oInitiated in February, the review process remains on-going

"This quarter has been about execution and keeping our development projects
moving forward. The drilling of our production wells at West Rochelle and
Bacchus continues on schedule. We have worked through a significant number of
the processing issues at Alba and expect to see better production levels from
the field in the second half of the year," said William L. Transier, chairman,
chief executive officer and president. "Our strategic review process remains
on-going. We intend to bring the process to conclusion as soon as a thorough
evaluation of all the options is completed by our Board of Directors."

Operational Update

United Kingdom

In mid-February, the Transocean Prospect rig moved to the West Rochelle field.
Drilling of the production well has reached total measured depth and final
completion of the well is in process. First production from the West Rochelle
well is expected in mid-2013.The subsea pipeline and manifold infrastructure
for the field has been installed and the topside modifications to the Scott
Platform have also been completed. Endeavour has a 44% working interest in the
Rochelle development.

At the Bacchus field, the Rowan Gorilla VII rig arrived in late March to drill
the third planned production well. Production performance from the first two
wells continues to be strong and remains above original expectations. First
production from the third well is expected during the third quarter of 2013.
Endeavour has a 30% working interest in the Bacchus field.

At Alba, the year's drilling campaign commenced with three development wells
planned. The timing of the drilling program has been accelerated into the
first half of the year. The Company expects the drilling, in combination with
improvements in the processing systems, to result in increased production
levels from the field during the second half of the year. During the first
quarter, production at the field was impacted by an unplanned five-day
shutdown and lower than expected production levels due to continuing
processing problems. Endeavour has a 25.68% working interest in the Alba
field.

Beginning in March, the Centurion South exploration well was drilled to its
planned total depth. The presence of hydrocarbon bearing Fulmar reservoir
sands was confirmed, although the section was thinner than anticipated. The
Company and its partners are evaluating the results, as well as the overall
commercial viability of the combined Centurion discoveries. The prospect is a
satellite to the Centurion discovery which was drilled in 1984 and flow tested
at 5,200 boepd. The well is being plugged and abandoned. Endeavour has a 33.3%
working interested in the block.

Finance

On April 30, Endeavour closed on the sale of a $107.5 million Monetary
Production Payment (the 'MPP') after receiving the required approvals from the
United Kingdom regulators. The MPP will be satisfied out of the production
from the Alba and Bacchus fields.

Strategic Review Process

In February 2013, the Board of Directors initiated a process to explore a
broad range of strategic alternatives to further enhance shareholder value.
Data rooms were opened in the U.K. and U.S. and the process is on-going.
Endeavour remains focused on executing its operational plans. While the
strategic review is continuing, the Company can provide no assurance that the
strategic review will result in the Company changing its current business plan
or completing any transaction.

Earnings Conference Call, Thursday, May 9, 2013 at 9:00 a.m., Central Time,
3:00 p.m. British Summer Time

Endeavour International will host a conference call and web cast to discuss
its 2013 first quarter financial and operating results on Thursday, May 9,
2013 at 9 a.m. Central Time, 3 p.m. British Summer Time. A supporting slide
deck for the conference call is available on the home page of Endeavour's
website at www.endeavourcorp.com and under the Investor Relations section in
conjunction with the details for the conference call. To participate and ask
questions during the conference call, dial the local country telephone number
and the confirmation code 3076749. The toll-free numbers are 800-756-4697 in
the United States and 0-808-101-1152 in the United Kingdom. Other
international callers should dial 913-981-5517 (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 12:00 p.m.
Central Time on May 9, 2013 through 12:00 p.m. on May 16, 2013 by dialing toll
free 888-203-1112 (U.S.) or 719-457-0820 (international), confirmation code
3076749.

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 www.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
materially.

The Securities and Exchange Commission (SEC) permits oil and gas companies, in
their filings with the SEC, to disclose not only proved reserves, but also
probable reserves and possible reserves that meet the SEC's definitions for
such terms, and price and cost sensitivities for such reserves, and prohibits
disclosure of resources that do not constitute such 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.
These estimates are by their nature more speculative than estimates of proved,
probable and possible reserves and accordingly are subject to substantially
greater risk of being actually realized. 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

(Unaudited)

(Amounts in thousands)
                                             March 31,    December 31,
                                             2013         2012
Assets
Current Assets:
 Cash and cash equivalents                 $ 80,781     $ 59,185
 Restricted cash                             178          178
 Accounts receivable                         30,173       46,003
 Prepaid expenses and other current assets   40,562       20,995
          Total Current Assets               151,694      126,361
Property and Equipment, Net                  1,032,810    1,003,441
Goodwill                                     259,238      262,764
Other Assets                                 58,509       49,906
Total Assets                               $ 1,502,251  $ 1,442,472
Liabilities and Stockholders' Equity
Current Liabilities:
 Accounts payable                          $ 44,731     $ 60,153
 Current maturities of debt                  -            15,713
 Accrued expenses and other                  150,948      90,100
          Total Current Liabilities          195,679      165,966
Long-Term Debt                               862,249      843,793
Deferred Taxes                               154,354      141,887
Other Liabilities                            155,961      147,692
          Total Liabilities                  1,368,243    1,299,338
Commitments and Contingencies
Series C Convertible Preferred Stock         43,703       43,703
Stockholders' Equity                         90,305       99,431
Total Liabilities and Stockholders' Equity $ 1,502,251  $ 1,442,472





Endeavour International Corporation

Condensed Consolidated Statement of Operations

(Unaudited)

(Amounts in thousands, except per share data)
                                                      Three Months Ended
                                                      March 31,
                                                      2013        2012
Revenues                                              $ 57,672    $ 15,166
Cost of Operations:
    Operating expenses                                  17,490      4,898
    Depreciation, depletion and amortization            22,947      7,906
    Impairment of oil and gas properties                3,534       15,740
    General and administrative                          5,482       5,323
    Total Expenses                                      49,453      33,867
Income (Loss) From Operations                           8,219       (18,701)
Other Income (Expense):
    Derivatives:
          Unrealized gains (losses)                     1,580       (4,779)
    Interest expense                                    (21,438)    (19,707)
    Letter of credit fees                               (11,380)    -
    Interest income and other                           9,882       (2,668)
Total Other Expense                                     (21,356)    (27,154)
Loss Before Income Taxes                                (13,137)    (45,855)
Income Tax Expense (Benefit)                            909         (10,593)
Net Loss                                                (14,046)    (35,262)
Preferred Stock Dividends                               456         456
Net Loss to Common Stockholders                       $ (14,502)  $ (35,718)
Basic and Diluted Net Loss per Common Share           $ (0.31)    $ (0.94)
Weighted Average Number of Common Shares Outstanding:
    Basic and Diluted                                   47,060      37,854





Endeavour International Corporation

Condensed Consolidated Statement of Cash Flows

(Unaudited)

(Amounts in thousands)
                                                 Three Months Ended March 31,
                                                 2013           2012
Cash Flows from Operating Activities:
  Net loss                                       $  (14,046)    $  (35,262)
  Adjustments to reconcile net loss to net cash
  provided by (used in) operating activities:
          Depreciation, depletion and               22,947         7,906
          amortization
          Impairment of oil and gas properties      3,534          15,740
          Deferred tax expense (benefit)            128            (9,014)
          Unrealized (gains) losses on              (1,580)        4,779
          derivatives
          Amortization of non-cash compensation     832            1,559
          Amortization of loan costs and            3,439          3,669
          discount
          Non-cash interest expense                 2,274          3,528
          Other                                     (4,723)        1,892
          Changes in operating assets and           34,800         (15,950)
          liabilities
Net Cash Provided by (Used in) Operating            47,605         (21,153)
Activities
Cash Flows From Investing Activities:
  Capital expenditures                              (58,257)       (23,242)
  Acquisitions                                     (817)          (8,017)
  Increase in restricted cash                       -              (493,434)
Net Cash Used in Investing Activities               (59,074)       (524,693)
Cash Flows From Financing Activities:
  Repayments of borrowings                          -              (588)
  Borrowings under debt agreements, net of debt     -              480,000
  discount
  Financing costs paid                              (9,935)        (21,005)
  Proceeds from issuance of monetary production     43,000         -
  payment
  Dividends paid                                    -              (416)
  Other financing                                   -              5
Net Cash Provided by Financing Activities           33,065         457,996
Net Increase (Decrease) in Cash and Cash            21,596         (87,850)
Equivalents
Cash and Cash Equivalents, Beginning of Period      59,185         106,036
Cash and Cash Equivalents, End of Period         $  80,781      $  18,186





Endeavour International Corporation

Operating Statistics

(Unaudited)
                                             Three Months Ended
                                             March 31,
                                             2013        2012
Sales volume (1)
   Oil and condensate sales (Mbbls):
            United Kingdom                       508       96
            United States                        -         1
            Total                                508       97
   Gas sales (MMcf):
            United Kingdom                       11        21
            United States                        821       1,677
            Total                                832       1,698
   Oil equivalent sales (MBOE)
            United Kingdom                       510       100
            United States                        137       280
            Total                                647       380
   Total BOE per day                             7,186     4,174
Physical production volume (BOE per day) (1)
            United Kingdom                       7,862     893
            United States                        1,523     3,081
            Total                                9,385     3,974
Realized Price, before and after derivatives
   Oil and condensate price ($ per Bbl)        $ 108.40  $ 116.99
   Gas price ($ per Mcf)                       $ 3.13    $ 2.25
   Equivalent oil price ($ per BOE)            $ 89.17   $ 39.92

     We record oil revenues using the sales method and use the entitlements
^(1) method to account for sale of gas production. Physical production may
     differ from sales volumes based on the timing of tanker liftings for our
     international sales.



Endeavour International Corporation
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited)
(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 liabilities.

(amounts in thousands)                                First Quarter
                                                      March 31,
                                                      2013       2012
Net loss                                              $ (14,046) $ (35,262)
Impairment of oil and gas properties (net of tax) (1)   3,534      15,740
Unrealized loss on derivatives (net of tax) (2)         (1,580)    4,148
Net Loss as Adjusted                                  $ (12,092) $ (15,374)
Net loss                                              $ (14,046) $ (35,262)
Unrealized loss on derivatives                          (1,580)    4,779
Net interest expense                                    21,422     19,651
Letter of credit fees                                   11,380     -
Depreciation, depletion and amortization                22,947     7,906
Impairment of oil and gas properties                    3,534      15,740
Income tax expense (benefit)                            909        (10,593)
Adjusted EBITDA                                       $ 44,566   $ 2,221

     Since the impairments related to U.S. oil and gas properties, we
^(1) recognized no tax benefits as there was no assurance that we could
     generate any U.S. taxable earnings.
^(2) Net of tax (benefit) expense of none and $631, respectively.

SOURCE Endeavour International Corporation

Website: http://www.endeavourcorp.com
Contact: Endeavour - Investor Relations, Darcey Matthews, 713.307.8711, Pelham
Public Relations - UK Media, Philip Dennis, +44(0)207 861 3919, Henry Lerwill,
+44(0)207 861 3169