5 Mar 2008 07:00
Endeavour Announces Increase in Year-end Reserves for 2007 and Full-year
Production
HOUSTON, March 5 -- Endeavour International Corporation ("Endeavour") today announced that proved and probable reserves at year-end 2007 increased to 29.8 million barrels of oil equivalent (mmboe) compared to 29.6 mmboe a year ago (see Table 1). Extensions, discoveries and upward revisions to prior estimates added 3.5 mmboe, more than replacing production of 3.3 mmboe or approximately 9,000 boepd during 2007. The upward revisions in proved and probable reserves were a result of better-than-expected production from the Goldeneye, Brage and Njord fields and increased reserves in the Endeavour operated Rubie, Renee and Rochelle assets (R-blocks). The R-block reserves, which are covered under the existing Field Development Plans, will be developed for additional near-term production. Once development is complete, the R-blocks should add approximately 7,000 boepd of new production, net to Endeavour.
Table 1 Net Reserves at December 31, 2007 Oil(mmbl) NGL(mmbl) Gas(mmcf) Equivalents(mmboe) Proved Developed Producing 3,019 501 14,935 6,009 Non-Producing 673 1 95 690 Proved Undeveloped 1,130 15 5,214 2,014 Proved (1P) 4,822 517 20,244 8,713 Probable 10,263 296 63,226 21,097 Proved + Probable (2P) 15,085 813 83,470 29,810 Possible 12,304 396 147,106 37,218 Proved + Probable + Possible (P3) 27,389 1,209 230,576 67,028 Source: Netherland, Sewell and Associates, Inc.
As a result of strong performance from producing assets and our acquisition of producing properties in the United Kingdom in 2006, sales volumes for 2007 increased dramatically from the prior year. For the full-year 2007 sales volumes of 3.3 mmboe or 9,000 boepd compared to full-year 2006 volumes of 1.0 mmboe or 2,800 boepd (see Table 2). Currently, year-to-date production has averaged approximately 10,000 boepd.
Table 2 Net Reserves Year Ended December 31, 2007 2006 2005 Oil and Condensate Sales (mbbls)(1) United Kingdom 1,274 209 0 Norway 519 508 726 Total Oil and Condensate 1,793 717 726 Sales Gas Sales (mmcf) United Kingdom 8,556 1,539 0 Norway 328 203 184 Total Gas Sales 8,884 1,742 184 Total Sales (mboe) United Kingdom 2,700 466 0 Norway 574 542 756 Total Sales 3,274 1,008 756 BOE per day 8,969 2,760 2,072
"The foundation of our producing asset base, acquired in three different transactions since late 2004, has continued to deliver production and reserve performance that has exceeded expectations. Of special note are the Goldeneye field, where production continues to outperform forecasts, and ongoing development programs in the Brage and Njord fields," said William L. Transier, chairman, president and CEO. "Good internal technical work has identified new drilling opportunities and increased reserves, particularly in our operated R-blocks. The strong production results and the year-end reserve study confirm the depth and quality of our asset base and provide the foundation on which to confidently grow the company."
(1) The volumes shown in this table represent volumes that were recorded as sales in the company's records based on actual liftings of liquids which was less than our actual physical production. Physical production for 2007 totaled 9,200 boepd.
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. 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 of as of the date made. Such statements are subject to assumptions, risk and uncertainty. Actual results or events may vary materially.
The Securities and Exchange Commission (SEC) only permits oil and gas companies, in filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this release, such as probable reserves and possible reserves, to describe volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC guidelines strictly prohibit us from including in filings with the SEC and are non-GAAP measures. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by Endeavour. Investors are urged to also consider closely the disclosure in our filings with the SEC, available from our website at http://www.endeavourcorp.com. Endeavour is also subject to the requirements of the London Stock Exchange and considers the disclosures in this release to be appropriate and/or required under the guidelines of that exchange.
SOURCE Endeavour International Corporation
03/05/2008
/CONTACT: Rusty Fisher of Endeavour International Corporation, +1-713-307-8770/
/Web site: http://www.endeavourcorp.com /
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ENDEAVOUR INTERNATIONAL CORP