HOUSTON, March 15, 2010 /PRNewswire/ -- Endeavour International Corporation (NYSE-Amex: END) announced today that its board of directors has approved a review of strategic alternatives for its North Sea assets.
In an effort to unlock the value of its underlying North Sea assets, Endeavour will study a full range of options, including:
- Continuing to execute current operations plan - Entering into a joint venture to accelerate activities in the North Sea - Selling specific assets or the North Sea entire business
Our board, management and shareholders continue to be disappointed by the dislocation between underlying asset values and our stock price. Last year, Endeavour sold just 19 percent of its reserves for US$150 million, which was more than the market capitalization of the company at that time, said William L. Transier, chairman, chief executive officer and president. Since then, our stock price has traded back to pre-sale levels even though we believe the value of our remaining asset base represents a multiple of the existing share price. As fiduciaries of the capital entrusted to Endeavour, we want our stockholders and the market to recognize the full potential of their investment.
The board is committed to a thorough and systematic review for all of our North Sea alternatives, Transier added We have believed for some time that the discount in our stock price was related to the length of time between discovery and production and the relatively high development costs in the UK. Our entry into the US onshore arena balances this position with an inventory of properties that can be developed in a much shorter time period and at lower cost.
Endeavour will announce the results of the effort once a course of action is chosen. At the end of this review process, the company may elect to make no changes. Jefferies International Limited and Lambert Energy Advisory Ltd. have been retained by the company to lead the review.
Originally founded as a North Sea-focused exploration and production company, Endeavour currently owns interests in four producing fields in the UK sector of the North Sea with four developments underway. In 2009, the company shifted its strategy to include a growth initiative in the United States. In January, Endeavour unveiled a new portfolio of domestic shale plays, including the highly prospective Haynesville and Marcellus formations and two frontier plays.
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: Mike Kirksey, Investor Relations of Endeavour InternationalCorporation, +44(0)207-451-2364, or +1-713-307-8788; or UK Broker, JeffreyAuld of Canaccord Adams, +44(0)207-050-6500, or UK Media, Philip Dennis,+44(0)207-743-6363 or Henry Lerwill, +44(0)203-178-6242, both of PelhamBell Pottinger, all for Endeavour International Corporation
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