Feb 14 (Reuters) - Oil and gas producer EndeavourInternational Corp said it would explore a saleof the company as it was disappointed by the "dislocation"between its share price and the underlying value of its assets.
The company's U.S.-listed shares fell 34 percent to $3.24 onThursday - their lowest in more than four years - after thecompany suspended drilling in a North Sea well damaged by asevere storm.
Shares of the company, which had a market capitalization ofabout $230 million, have lost about half their value in the past12 months as of Wednesday close, following seven quarters oflosses.
SunTrust Robinson Humphrey analyst Neal Dingmann cut hisrating on the stock to "neutral" from "buy", citing thecompany's tight cash position, the lack of a credit facility anddelayed potential cash flow from the Rochelle project thatincludes the damaged well.
The work to repair the cementing around the well pipe hasbeen completed, Endeavour said.
The company began drilling the first of two planned wells inthe Rochelle area in the third quarter of last year. Endeavourestimated it would take about 120 days to drill the other well.
Endeavour could also look at a sale of assets as part of thereview. Tudor Pickering Holt & Co and Lambert Energy AdvisoryLtd would be the financial advisers, Endeavour said.
Endeavour's net loss for the nine months ended Sept. 30widened 39 percent to $119.8 million. It had gas, gas liquidsand crude oil sales of $121.4 million during the period.
The Houston-based company, set up in 2004, has threeproducing fields and three development projects in the UK, alongwith some shale fields in the United States, according to itswebsite.
Endeavour said in October it won seven licenses covering 10exploration blocks in the North Sea.
