USA: Endeavour Releases First Quarter 2011 Financial and Operational Results

Endeavour International Corporation  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) million 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 million, 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 Rochelle 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 2012.

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 County. 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.

More info: Endeavour

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Source: Endeavour,May 04, 2011;