Endeavour Reports Net Loss in First Quarter 2013

Endeavour International Corporation  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 same period 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 in 2012.

Sales volumes for the first quarter of 2013 were 7,186 barrels of oil equivalent per day (“boepd”), compared to 4,174 boepd for the same quarter in the prior year. First quarter 2013 sales numbers were impacted by the timing of liftings at the Alba field, where during the period there was only a single lifting. Physical production for the first quarter of 2013 averaged 9,385 boepd compared 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 projects moving forward. The drilling of our production wells at West Rochelle and Bacchus continues on schedule. We have worked through a significant number of the processing issues at Alba and expect to see better production levels from the field in the second half of the year,” said William L. Transier, chairman, chief executive officer and president. “Our strategic review process remains on-going. We intend to bring the process to conclusion as soon as a thorough evaluation 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 final completion of the well is in process. First production from the West Rochelle well is expected in mid-2013.The subsea pipeline and manifold infrastructure for the field has been installed and the topside modifications to the Scott Platform have also been completed. Endeavour has a 44% working interest in the Rochelle development.

At the Bacchus field, the Rowan Gorilla VII rig arrived in late March to drill the third planned production well. Production performance from the first two wells continues to be strong and remains above original expectations. First production 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 wells planned. The timing of the drilling program has been accelerated into the first half of the year. The Company expects the drilling, in combination with improvements in the processing systems, to result in increased production levels from the field during the second half of the year. During the first quarter, production at the field was impacted by an unplanned five-day shutdown and lower than expected production levels due to continuing processing problems. Endeavour has a 25.68% working interest in the Alba field.

Beginning in March, the Centurion South exploration well was drilled to its planned total depth. The presence of hydrocarbon bearing Fulmar reservoir sands was confirmed, although the section was thinner than anticipated. The Company and its partners are evaluating the results, as well as the overall commercial viability of the combined Centurion discoveries. The prospect is a satellite to the Centurion discovery which was drilled in 1984 and flow tested at 5,200 boepd. The well is being plugged and abandoned. Endeavour has a 33.3% working interested in the block.

Finance

On April 30, Endeavour closed on the sale of a $107.5 million Monetary Production Payment (the ‘MPP’) after receiving the required approvals from the United Kingdom regulators. The MPP will be satisfied out of the production from the Alba and Bacchus fields.

Strategic Review Process

In February 2013, the Board of Directors initiated a process to explore a broad range of strategic alternatives to further enhance shareholder value. Data rooms were opened in the U.K. and U.S. and the process is on-going. Endeavour remains focused on executing its operational plans. While the strategic review is continuing, the Company can provide no assurance that the strategic review will result in the Company changing its current business plan or completing any transaction.

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Press Release, May 09, 2013