16 Jun 2010 07:00
Endeavour Announces Production Facilities Agreement for UK Columbus Field
LONDON, June 16 -- Endeavour International Corporation (NYSE-Amex: END) announced today that an agreement has been reached for production facilities for the Columbus field in Blocks 12/16f and Block 23/16f under development in the United Kingdom sector of the Central North Sea. Endeavour holds a 25 percent interest in the field, which is expected to begin producing in the second half of 2012.
"This agreement is a critical milestone as it adds considerable certainty that production from the Columbus field will begin on our current timetable," said William L. Transier, chairman, chief executive officer and president. "Access to production infrastructure remains an ongoing issue for many independent operators in the UK North Sea; however, this agreement is an indication of the progress that can be achieved towards the monetization of assets."
Under the agreement, BG International Limited will carry out Front End Engineering and Design work (FEED) for a Bridge Linked Platform (BLP) that will connect Columbus production to the Lomond field and provide gas and condensate reception facilities. The cost of the FEED and BLP will be shared between the license holders of the Columbus field and adjacent interest owners in Block 23/21, where the field has been shown to extend. Separately, it has been agreed, that the cost of Columbus subsea facilities will be shared between the license holders of both blocks, with a new Columbus Field Development Plan (FDP) to be submitted to the UK Department for Energy and Climate Change.
Work on the FEED is already underway and is expected to be completed in the third quarter of 2010, concurrent with FDP preparation and submission. Negotiations to agree on the terms of use for the Lomond platform as a processing host and export point for Columbus produced fluids are at an advanced stage. Project sanction is scheduled for the end of 2010.
The Columbus field was discovered in 2006 and subsequently appraised in 2007 through the drilling of two additional wells. Partners in the field include the operator, Serica Energy (UK) Limited, with a 50 percent interest and EOG Resources United Kingdom Limited, which holds a 25 percent interest.
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 http://www.endeavourcorp.com.
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 estimates of recoverable resources per well and completed well costs included herein are based upon other typical results in these shale plays and may not be indicative of actual results.
SOURCE Endeavour International Corporation
CONTACT: Investor Relations, Mike Kirksey of Endeavour International Corporation, +44 (0) 207 451 2364, +1-713-307-8788; or UK Media, Philip Dennis, +44 (0) 20 7337 1516, or Henry Lerwill, +44 (0) 20 7337 1526, both of Pelham Bell Pottinger
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