HOUSTON, March 12 /PRNewswire/ --

Endeavour International Corporation (Amex: END) (LSE: ENDV) today reported that discretionary cash flow in 2007 increased nearly ten-fold to US$113.0 million from US$10.7 million in 2006. Revenue for 2007 increased 225% to US$176.1 million compared to US$54.1 million in 2006, while adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) increased to US$124.1 million in 2007 from US$9.2 million in 2006.

For the fourth quarter 2007, discretionary cash flow increased to US$33.6 million from US$8.6 million in the year-ago quarter on revenues of US$54.5 million, up from US$31.3 million in the fourth quarter 2006. Adjusted EBITDA was US$35.2 million in the quarter compared to US$10.5 million in the fourth quarter 2006.

Strong performance from producing assets and the acquisition of producing properties in 2006 resulted in sales volumes for the full-year 2007 of 3.3 mmboe or 9,000 boepd compared to full-year 2006 volumes of 1.0 mmboe or 2,800 boepd.

"Our diversified asset portfolio continues to outperform our expectations and generate strong cash flow," said William L. Transier, chairman, chief executive officer and president. "The positive performance of our asset base allows us to grow from internally generated cash flow without having to access capital markets during this uncertain period. Good technical work by our professionals has identified new drilling opportunities and a related increase in reserves."

On a GAAP basis, the company reported a net loss to common stockholders for 2007 of US$60.3 million or US$0.49 per share as compared to a net loss of US$8.8 million or US$0.10 per share for 2006. Without the effect of non-cash derivative transactions and currency impacts on deferred taxes, net loss for 2007 would have been US$10.9 million or US$0.09, compared to a net loss of US$21.3 million or US$0.25 per share in 2006.

The company maintains a balanced hedge position with regard to its future oil and gas production. Currently, approximately 50 percent of the company's production is unhedged and exposed to the current strength in commodity prices. For the balance that is hedged, the company applies mark-to-market accounting principles -- effectively pulling forward into current periods the non-cash gains and losses from commodity price fluctuations relating to all future delivery periods. In late 2006, these contracts covered nearly 5.2 mmboe of production through 2011 at a weighted average price of US$68.35 per boe. As both oil and gas prices fell from the date we entered into the contracts, we recorded an unrealized gain of US$34.5 million in 2006, reflecting the decline in future commodity prices through 2011. However, in 2007, commodity prices reversed their 2006 declines, continuing to increase to record levels in the case of oil. At year-end 2007, with oil prices reaching nearly US$100 per barrel and gas prices recovering to levels close to our original contract prices, we recorded an US$89.1 million net unrealized loss on contract volumes through 2011 of approximately 2.7 mmbl of oil and 6.9 mmcf of gas.

Recent significant events include: -- 2007 reserve growth exceeded production - The company reported year-end proved and probable reserves of 29.8 mmboe compared to 2006 year-end reserves of 29.6 mmboe. -- Initiated gas production from Njord - Gas production from the Njord field began in December, adding 900 boepd of incremental volumes net to Endeavour. Currently, net production from the Njord field is averaging around 2,100 boepd. -- Appraised Columbus discovery - In November the successful appraisal of the Columbus discovery was completed and work began for the submission of the Field Development Plan. -- Completed another successful development well in the Brage field - The A-28B long reach well to the Bowmore reservoir in the Brage field was completed and production began. The well tested at a rate of approximately 17,000 boepd. The well is currently producing at a reduced rate of 7,500 boepd gross, resulting in net new production of approximately 300 boepd. -- Received investment by the Smedvig family - In December the Smedvig family of Norway agreed to invest US$40 million in a convertible note and committed to an additional US$60 million future investment for strategic growth opportunities. -- Retired the second-lien term loan - Using existing resources and proceeds from the Smedvig investment, the company retired the US$75 million second-lien term loan that carried an interest rate of Libor plus 700 basis points and contained numerous provisions that limited the company's financial flexibility. -- Participated in the Norwegian APA 2007 Licensing Round - Endeavour was awarded two production licenses covering approximately 500,000 acres. -- Listed on the London Stock Exchange - In December the company's stock was approved for trading on the London Stock Exchange under the symbol ENDV.

Guidance on Year 2008 Estimates Remains Unchanged

The table below sets forth estimates of the company's operating statistics for the full year ending December 31, 2008.

Estimated Average Production (A) Daily Production (boepd) 8,600 to 9,000 Differentials (B) Oil (US$/bbl) US$(4.00) to US$(5.00) Gas (US$/mcf) US$(0.30) to US$(0.40) Gas Percentage of Total 50% to 55% Lease operating expense (per barrel) US$14.00 to US$15.00 (A) Actual results may differ materially from these estimates. (B) For purposes of the estimates, assumptions of price differentials are based on location, quality and other factors, excluding the effects of derivative financial instruments. Gas price differentials are stated as premiums (discounts) from National Balancing Point pricing, and oil price differentials are stated as premiums (discounts) from Dated Brent pricing.

Earnings Conference Call Today, Wednesday, March 12, 2008 at 10:00 A.M. EDT (9:00 A.M. CDT, 2:00 P.M. GMT)

Endeavour will host an analyst conference call and web cast today to discuss 2007 fourth quarter and full-year results and update operational plans for the current year at 10:00 a.m. Eastern Daylight Time. To participate and ask questions during the conference call please enter the confirmation code 5734437 after dialing the local country phone number. In the United States dial +1-888-215-6899 (U.S., toll-free), in the United Kingdom dial +0-800-051-7166 (UK, toll-free), in Norway dial +800-191-83 (Norway, toll-free) and all others dial +1-913-981-5557 (international, tolls apply). To listen only to the live audio web cast via the internet access the Investor Relations tab on Endeavour's home page at http://www.endeavourcorp.com. A replay will be available beginning at 12:00 p.m. Central time on March 13 through 12:00 a.m. Central time on April 1 by dialing toll free +1-888-203-1112 (U.S.) or +1-719-457-0820 (international), pass code: 5734437.

Endeavour International Corporation is an international 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.

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give the company's current expectations or forecasts of future events. They include expected oil and natural gas production and future expenses, projections of future oil and natural gas prices, and statements concerning anticipated business strategy and other plans and objectives for future operations. The company cautions that undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this press release, and the company undertakes no obligation to update this information.

Factors that could cause actual results to differ materially from expected results are described in "Risks related to the company's Business" under "Risk Factors" in Item 1A of the company's annual reports on Form 10-K. These risk factors include, among others, the company's ability to replace reserves and sustain production; the level of indebtedness; the availability of capital on an economic basis to fund reserve replacement costs; uncertainties in evaluating oil and natural gas reserves of acquired properties and associated potential liabilities; unsuccessful exploration and development drilling; and production interruptions that could adversely affect the company's cash flow.

Endeavour International Corporation Comparative Condensed Consolidated Balance Sheets (Unaudited) (Amounts in US$ thousands) December 31, December 31, 2007 2006 Assets Current Assets: Cash and cash equivalents $16,440 $39,814 Restricted cash 22,000 1,867 Accounts receivable 33,291 61,104 Prepaid expenses and other current assets 46,516 25,783 Total Current Assets 118,247 128,568 Property and Equipment, Net 335,023 319,315 Goodwill 283,324 291,752 Other Assets 11,029 34,835 Total Assets $747,623 $774,470 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $31,036 $36,928 Current maturities of debt - 2,410 Accrued expenses and other 50,013 41,799 Total Current Liabilities 81,049 81,137 Long-Term Debt 266,250 303,840 Deferred Taxes 135,552 115,155 Other Liabilities 69,623 32,510 Total Liabilities 552,474 532,642 Commitments and Contingencies Series C Convertible Preferred Stock 125,000 125,000 Stockholders' Equity 70,149 116,828 Total Liabilities and Stockholders' Equity $747,623 $774,470

Endeavour International Corporation Comparative Condensed Consolidated Statement of Operations (Unaudited) (Amounts in US$ thousands, except per share data) Three Months Year Ended December 31, Ended December 31, 2007 2006 2007 2006 Revenues $54,484 $31,284 $176,064 $54,131 Cost of Operations: Operating expenses 11,060 7,856 41,044 15,568 Depreciation, depletion and amortization 20,661 12,262 76,850 20,164 Impairment of oil and gas properties - - - 849 General and administrative 5,256 5,728 19,878 21,924 Total Expenses 36,977 25,846 137,772 58,505 Income (Loss) From Operations 17,507 5,438 38,292 (4,374) Other Income (Expense): Commodity derivatives: Realized gains (losses) (3,309) - 12,048 - Unrealized gains (losses) (47,792) 17,380 (89,132) 34,531 Interest expense (5,137) (4,558) (18,742) (7,941) Interest income 575 661 2,312 2,265 Other 275 (7,248) (3,035) (7,406) Total Other Income (Expense) (55,388) 6,235 (96,549) 21,449 Income (Loss) Before Income Taxes (37,881) 11,673 (58,257) 17,075 Income Tax Expense (Benefit) (10,992) 16,526 (9,180) 23,913 Net Loss (26,889) (4,853) (49,077) (6,838) Preferred Stock Dividends 2,709 1,873 11,238 1,991 Net Loss to Common Stockholders $(29,598) $(6,726) $(60,315) $(8,829) Net Loss Per Common Share - Basic and Diluted $(0.23) $(0.06) $(0.49) $(0.10) Weighted Average Number of Common Shares Outstanding - Basic and Diluted 126,492 107,726 123,118 86,636

Endeavour International Corporation Comparative Condensed Consolidated Statement of Cash Flows (Unaudited) (Amounts in US$ thousands) Year Ended December 31, 2007 2006 Cash Flows from Operating Activities: Net loss $(49,077) $(6,838) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation, depletion and amortization 76,850 20,164 Impairment of oil and gas properties - 849 Deferred tax expense (benefit) (12,925) 13,038 Unrealized (gain) loss on commodity derivatives 89,132 (34,531) Amortization of non-cash compensation 4,968 11,573 Financing costs expense - 3,750 Impairment of marketable securities - 1,775 Other 4,026 883 Changes in operating assets and liabilities: 15,532 (24,763) Net Cash Provided by (Used in) Operating Activities 128,506 (14,100) Cash Flows From Investing Activities: Capital expenditures (88,007) (55,496) Acquisitions, net of cash acquired - (376,915) (Increase) decrease in restricted cash (20,133) 5,293 Net Cash Used in Investing Activities (108,140) (427,118) Cash Flows From Financing Activities: Net proceeds (repayments) of borrowings (40,000) 225,000 Proceeds from common stock issued and issuable, net of issuance costs - 83,967 Proceeds from preferred stock issued and issuable, net of issuance costs - 100,657 Proceeds from warrant and stock option exercises - 3,310 Financing costs paid (263) (9,565) Payment of preferred dividends (2,656) - Other (821) - Net Cash Provided by (Used in) Financing Activities (43,740) 403,369 Net Decrease in Cash and Cash Equivalents (23,374) (37,849) Effect of Foreign Currency Changes on Cash - 1,536 Cash and Cash Equivalents, Beginning of Period 39,814 76,127 Cash and Cash Equivalents, End of Period $16,440 $39,814

Endeavour International Corporation Operating Statistics (Unaudited) (All figures in US$ unless stated otherwise) Three Months Ended Year Ended December 31, December 31, 2007 2006 2007 2006 Production: Oil and condensate sales (Mbbl): United Kingdom 291 209 1,274 209 Norway 129 119 519 508 Total 420 328 1,793 717 Gas sales (MMcf): United Kingdom 1,899 1,539 8,556 1,539 Norway 147 60 328 203 Total 2,046 1,599 8,884 1,742 Total sales (MBOE): United Kingdom 608 466 2,700 466 Norway 153 129 574 542 Total 761 595 3,274 1,008 BOE per day 8,268 6,464 8,969 2,760 Realized Prices: Oil and condensate price ($ per Bbl): Before commodity derivatives $82.03 $53.33 $67.11 $60.51 Effect of commodity derivatives $(12.98) $(3.45) $(2.13) $(7.63) Realized prices including commodity derivatives $69.05 $49.88 $64.98 $52.88 Gas price ($ per Mcf): Before commodity derivatives $9.80 $9.33 $6.27 $9.30 Effect of commodity derivatives $1.05 $ - $1.79 $ - Realized prices including commodity derivatives $10.85 $9.33 $8.06 $9.30 Equivalent oil price ($ per BOE): Before commodity derivatives $71.63 $54.51 $53.78 $59.15 Effect of commodity derivatives $(4.35) $(1.91) $3.68 $(5.43) Realized prices including commodity derivatives $67.28 $52.60 $57.46 $53.72

Endeavour International Corporation Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (All figures in US$ unless stated otherwise) As required under Regulation G of the Securities Exchange Act of 1934, provided below are reconciliations of net income (loss) to the following non-GAAP financial measures: net income as adjusted, Adjusted EBITDA and discretionary cash flow. The company uses these non-GAAP measures as key metrics for the management of the company and to demonstrate the company's ability to internally fund capital expenditures and service debt. The non-GAAP measures are useful in comparisons of oil and gas exploration and production companies as they exclude non-operating fluctuations in assets and liabilities. (in millions, except per Three Months Ended Year Ended share) December 31, December 31, 2007 2006 2007 2006 Net loss to common shareholders, as reported $(29.6) $(6.7) $(60.3) $(8.8) Unrealized (gains) losses on derivatives (net of 50% tax) 23.9 (8.7) 44.6 (17.3) Currency impact of deferred taxes (3.1) 3.9 4.8 4.8 Net income (loss) as adjusted $(8.8) $(11.5) $(10.9) $(21.3) Weighted average number of common shares outstanding - basic and diluted 126.5 107.7 123.1 86.6 Earnings per share, as adjusted $(0.07) $(0.11) $(0.09) $(0.25) Net loss to common shareholders, as reported $(29.6) $(6.7) $(60.3) $(8.8) Unrealized (gains) losses on derivatives 47.8 (17.4) 89.1 (34.5) Net interest expense 4.6 3.9 16.4 5.7 Depreciation, depletion and amortization 20.7 12.3 76.9 20.2 Impairment of oil and gas properties - - - 0.8 Income tax expense (benefit) (11.0) 16.5 (9.2) 23.9 Preferred stock dividends 2.7 1.9 11.2 1.9 Adjusted EBITDA $35.2 $10.5 $124.1 $9.2 Net loss $(26.9) $(4.9) $(49.1) $(6.8) Depreciation, depletion and amortization 20.7 12.3 76.9 20.2 Impairment of oil and gas properties - - - 0.8 Deferred tax expense (benefit) (11.5) 10.2 (12.9) 13.0 Unrealized (gain) loss on commodity derivatives 47.8 (17.4) 89.1 (34.5) Amortization of non-cash compensation 1.0 2.4 5.0 11.6 Other 2.5 6.0 4.0 6.4 Discretionary cash flow $33.6 $8.6 $113.0 $10.7

Discretionary cash flow is equal to cash flow from operating activities before the changes in operating assets and liabilities.

Web site: http://www.endeavourcorp.com

Rusty Fisher for Endeavour, +1-713-307-8770