Endeavour International Corporation today reported fourth quarter 2012 net loss, as adjusted of $7.7 million compared to a net loss, as adjusted of $5.8 million for 2011. On a GAAP basis, net loss for the fourth quarter of 2012 was $6.5 million as compared to net loss of $44.6 million for the same quarter in 2011.
Sales volumes for the 2012 fourth quarter period were 11,541 boepd, compared to 4,253 boepd for the same quarter in the prior year. Physical production for the fourth quarter of 2012 averaged 10,300 barrels of oil equivalent per day (“boepd”) compared to approximately 4,100 boepd for the same quarter of 2011, representing a 151% increase.
The Company completed an offering for an additional $54 million of the 12% First Priority Notes due 2018 and fully redeemed the $25 million 12% Senior Subordinated Notes.
The Fourth Quarter highlights include proved reserves in the U.K. which increased 186% year-over-year. The drilling commenced and infrastructure substantially completed on the Rochelle development. The Company also completed an exchange of Haynesville assets for Pennsylvania Marcellus assets.
The Board of Directors initiated a process to explore a broad range of strategic alternatives to further enhance shareholder value. Current business focus remains on executing the operational plan.
As for the Management and Board Developments, Catherine L. Stubbs was named Chief Financial Officer and Ashok Nayyor resigned from the Board of Directors.
The Company received $22.5 million through the forward sale of U.K. oil production and obtained an extension on the Revolving Credit Facility to midyear 2014.
They replaced or extended the Reimbursement Agreements to midyear 2014.
Bourbon entered into a Monetary Production Payment for $107.5 million to be satisfied out of proceeds of production from Endeavour’s U.K. North Sea assets and established 2013 Capex budget in the U.K. of $140 million – $150 million.
Drilling commenced at West Rochelle, North Sea, after suspension of the East Rochelle production well.
Bacchus third production well is expected to commence drilling in March.
“In 2012, the Company undertook two major development projects and a sizable acquisition resulting in increased oil production and reserves in the U.K. North Sea. Although the path to growth was challenging, we were able to manage through a series of complex business transactions to close on the additional working interest at Alba and bring the Bacchus development on-line. We remain confident that Rochelle production will be on-line soon demonstrating the quality of this important asset,” said William L. Transier, chairman, chief executive officer and president. “Our ability to increase our liquidity quickly shows the perseverance of our management team to handle unexpected events for the benefit of all stakeholders.”
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Press Release, March 6, 2013