ENDV.L Regulatory News (ENDV)

Endeavour Executes Restructuring Support Agreement Pursuant to Chapter 11Proceedings -- Endeavour will Continue to Conduct Business in the Ordinary Course HOUSTON, Oct. 13, 2014 -- Endeavour International Corporation(NYSE: END) (LSE: ENDV) today announced that the Company has executed aRestructuring Support Agreement ("RSA") with holders of more than two-thirds(2/3) of its 12% First Priority Notes, 12% Second Priority Notes, 7.5%Convertible Bonds and 5.5% / 6.5% Convertible Notes (collectively, the "Notes")to restructure the Company's debt obligations. In connection therewith, theCompany and certain of its subsidiaries have each filed a voluntary petitionfor relief under Chapter 11 of the Bankruptcy Code in the United StatesBankruptcy Court for the District of Delaware ("Chapter 11 Proceedings"). TheCompany's U.K. subsidiaries and certain other affiliates have not soughtbankruptcy protection and will continue to operate outside of anyreorganization proceedings. Endeavour and its debtor affiliates will continueto operate as "debtors in possession" in the Chapter 11 Proceedings. Pursuant to the RSA, the Company's existing debt will be reduced byapproximately $568 million including the cancellation of all of the Company'sNotes and reduce its annual interest burden by 43%. As consideration for suchcancellation, the reorganized Company would issue (a) $262.5 million of new9.75% notes to the holders of its 12% First Priority Notes, (b) an aggregate ofapproximately $237.5 million of new 3.5% convertible preferred shares toholders of its 12% First Priority Notes and 12% Second Priority Notes, and (c)common shares to holders of its 12% Second Priority Notes, 7.5% ConvertibleBonds, 6.5% Convertible Notes and 5.5% Convertible Notes. All of the Company'sexisting equity securities, including its shares of common stock and preferredstock, will be cancelled, without receiving any distribution. The $440 million senior secured term loan incurred by Endeavour Energy UKLimited and certain other of the Company's foreign subsidiaries will not beaffected by the restructuring. Endeavour expects its oil and gas operations to continue in the ordinary coursethroughout the Chapter 11 Proceedings. The Company believes that the rights andprotections afforded it by a court-supervised reorganization process willprovide Endeavour with the time and flexibility it needs to address itsfinancial challenges, delever its balance sheet and position the Company forthe longer term. The filing is principally the result of a series of events during a period oftime when the Company was heavily involved in the development of two largeassets in the U.K. North Sea. In Endeavour's circumstances, its two large NorthSea developments - Bacchus and Rochelle, were each over a year delayed incoming to first production, which caused cost overruns from the original costprojections. These delays also substantially impacted the cash flow andoperating margins the Company would have received had the projects come onlineas scheduled. To maintain its ownership rights in these valuable assets,Endeavour incurred additional debt at a high cost of capital. As of the filing,the large capital commitment for most of the North Sea assets has beencompleted and the assets are online. "Today's RSA and the required Chapter 11 Proceedings is a step forward for theCompany to move expeditiously through the reorganization process," said WilliamL. Transier, chairman, chief executive officer and president. "It has been asignificant accomplishment by the Company and a very long process to get ourNorth Sea developments online. We continue to believe that these are qualitylong lived assets that can generate substantial returns for the Company'sstakeholders. The RSA and ensuing reorganization process is important to thepreservation of these assets for our investors." The Company is in process of filing various "first-day" motions seekingcustomary relief from the U.S. Bankruptcy Court to facilitate its transitioninto the Chapter 11 Proceedings. About Endeavour International Corporation Endeavour International Corporation is an oil and gas exploration andproduction company focused on the acquisition, exploration and development ofoil and natural gas in the North Sea and the United States. For moreinformation, visit www.endeavourcorp.com . Forward-looking Statements This press release contains certain "forward-looking statements," as such termis defined in Section 21E of the Securities Exchange Act of 1934, as amended,relating to future events and the financial performance of Endeavour. Suchstatements are only predictions and involve risks and uncertainties, resultingin the possibility that actual events or performance will differ materiallyfrom such predictions as a result of certain risk factors. As such, readers arecautioned not to place undue reliance on forward-looking statements, whichspeak only to management's plans, assumptions and expectations as of the datehereof. Please refer to Endeavour's Annual Report on Form 10-K for year endedDecember 31, 2013, filed with the SEC on March 17, 2014, Form 10-K/A filed onMarch 21, 2014 and other filings for a discussion of material risk factors.Endeavour disclaims any duty to update or alter any forward-looking statements,except as required by applicable law.

CONTACT: Endeavour - Investor Relations, Darcey Matthews, +1-713-307-8711