ENDV.L Regulatory News (ENDV)

Endeavour Announces 2013 First Quarter Financial and Operational Results

HOUSTON, May 9, 2013 -- 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 sameperiod 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 in2012. Sales volumes for the first quarter of 2013 were 7,186 barrels of oilequivalent per day ("boepd"), compared to 4,174 boepd for the same quarter inthe prior year. First quarter 2013 sales numbers were impacted by the timing ofliftings at the Alba field, where during the period there was only a singlelifting. Physical production for the first quarter of 2013 averaged 9,385 boepdcompared to 3,974 boepd for the same quarter of 2012.

Recent Business Highlights:

* North Sea: + Drilling of the West Rochelle well remains on schedule, with first production expected mid-year 2013 + The third production well at Bacchus began drilling in March + The Alba 2013 in-field drilling program commenced + The Centurion South exploration well was drilled to total depth * Finance:

+ The sale of the $107.5 million Monetary Production Payment closed on

April 30, 2013

* Strategic Review:

+ Initiated in February, the review process remains on-going

"This quarter has been about execution and keeping our development projectsmoving forward. The drilling of our production wells at West Rochelle andBacchus continues on schedule. We have worked through a significant number ofthe processing issues at Alba and expect to see better production levels fromthe field in the second half of the year," said William L. Transier, chairman,chief executive officer and president. "Our strategic review process remainson-going. We intend to bring the process to conclusion as soon as a thoroughevaluation 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 finalcompletion of the well is in process. First production from the West Rochellewell is expected in mid-2013.The subsea pipeline and manifold infrastructurefor the field has been installed and the topside modifications to the ScottPlatform have also been completed. Endeavour has a 44% working interest in theRochelle development. At the Bacchus field, the Rowan Gorilla VII rig arrived in late March to drillthe third planned production well. Production performance from the first twowells continues to be strong and remains above original expectations. Firstproduction 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 wellsplanned. The timing of the drilling program has been accelerated into the firsthalf of the year. The Company expects the drilling, in combination withimprovements in the processing systems, to result in increased productionlevels from the field during the second half of the year. During the firstquarter, production at the field was impacted by an unplanned five-day shutdownand lower than expected production levels due to continuing processingproblems. Endeavour has a 25.68% working interest in the Alba field. Beginning in March, the Centurion South exploration well was drilled to itsplanned total depth. The presence of hydrocarbon bearing Fulmar reservoir sandswas confirmed, although the section was thinner than anticipated. The Companyand its partners are evaluating the results, as well as the overall commercialviability of the combined Centurion discoveries. The prospect is a satellite tothe Centurion discovery which was drilled in 1984 and flow tested at 5,200boepd. The well is being plugged and abandoned. Endeavour has a 33.3% workinginterested in the block. Finance On April 30, Endeavour closed on the sale of a $107.5 million MonetaryProduction Payment (the 'MPP') after receiving the required approvals from theUnited Kingdom regulators. The MPP will be satisfied out of the production fromthe Alba and Bacchus fields. Strategic Review Process In February 2013, the Board of Directors initiated a process to explore a broadrange of strategic alternatives to further enhance shareholder value. Datarooms were opened in the U.K. and U.S. and the process is on-going. Endeavourremains focused on executing its operational plans. While the strategic reviewis continuing, the Company can provide no assurance that the strategic reviewwill result in the Company changing its current business plan or completing anytransaction.

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 its2013 first quarter financial and operating results on Thursday, May 9, 2013 at9 a.m. Central Time, 3 p.m. British Summer Time. A supporting slide deck forthe conference call is available on the home page of Endeavour's website atwww.endeavourcorp.com and under the Investor Relations section in conjunctionwith the details for the conference call. To participate and ask questionsduring the conference call, dial the local country telephone number and theconfirmation code 3076749. The toll-free numbers are 800-756-4697 in the UnitedStates and 0-808-101-1152 in the United Kingdom. Other international callersshould dial 913-981-5517 (tolls apply). To listen only to the live audio webcast access Endeavour's home page at www.endeavourcorp.com. A replay will beavailable beginning at 12:00 p.m. Central Time on May 9, 2013 through 12:00p.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 andproduction company focused on the acquisition, exploration and development ofenergy 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 speakonly as of the date made. Such statements are subject to assumptions, risk anduncertainty. Actual results or events may vary materially. The Securities and Exchange Commission (SEC) permits oil and gas companies, intheir filings with the SEC, to disclose not only proved reserves, but alsoprobable reserves and possible reserves that meet the SEC's definitions forsuch terms, and price and cost sensitivities for such reserves, and prohibitsdisclosure of resources that do not constitute such reserves. We use may usecertain terms in our news releases, such as "reserve potential," that the SEC'sguidelines strictly prohibit us from including in filings with the SEC. Theseestimates are by their nature more speculative than estimates of proved,probable and possible reserves and accordingly are subject to substantiallygreater risk of being actually realized. In addition, we do not represent thatthe probable or possible reserves described herein meet the recoverabilitythresholds established by the SEC in its new definitions. Investors are urgedto also consider closely the disclosure in our filings with the SEC, availablefrom our website at www.endeavourcorp.com. Endeavour is also subject to therequirements of the London Stock Exchange and considers the disclosures in thisrelease to be appropriate and/or required under the guidelines of thatexchange. Endeavour International Corporation Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands) March 31, December 31, 2013 2012 ------------------------ AssetsCurrent 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 1,003,441Goodwill 259,238 262,764Other 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 862,249 843,793Deferred Taxes 154,354 141,887Other 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 SharesOutstanding: 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 amortization 22,947

7,906

Impairment of oil and gas properties 3,534

15,740

Deferred tax expense (benefit) 128

(9,014)

Unrealized (gains) losses on derivatives (1,580)

4,779

Amortization of non-cash compensation 832

1,559

Amortization of loan costs and discount 3,439

3,669

Non-cash interest expense 2,274

3,528

Other (4,723)

1,892

Changes in operating assets and liabilities 34,800

(15,950)

------ ------Net Cash Provided by (Used in) Operating Activities 47,605 (21,153) 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 Equivalents 21,596 (87,850)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 afterderivatives 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 ---------- --------- (1) We record oil revenues using the sales method and use the entitlements

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, providedbelow are reconciliations of net income (loss) to the following non-GAAP

financial measures: net income, as adjusted and Adjusted EBITDA. We use thesenon-GAAP measures as key metrics for our management and to demonstrate our

ability to internally fund capital expenditures and service debt. The non-GAAPmeasures are useful in comparisons of oil and gas exploration and productioncompanies 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 15,740Unrealized 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) 4,779Net interest expense 21,422 19,651Letter of credit fees 11,380 -Depreciation, depletion and amortization 22,947 7,906Impairment of oil and gas properties 3,534 15,740Income tax expense (benefit) 909 (10,593) --- ------ Adjusted EBITDA $ 44,566 $ 2,221 ------- -----

(1) Since the impairments related to U.S. oil and gas properties, we 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 CONTACT: Endeavour - Investor Relations, Darcey Matthews, 713.307.8711, PelhamPublic Relations - UK Media, Philip Dennis, +44(0)207 861 3919, Henry Lerwill,+44(0)207 861 3169