Endeavour Agrees to Acquire UK Producing Assets
Endeavour International Corporation
|Friday, May 26, 2006
"This is a transforming acquisition for Endeavour and represents a major milestone in executing the North Sea strategy we embarked upon two years ago," said William L. Transier, co-chief executive officer. "With the acquisition, we will add a position in three high quality oil and gas fields and one mature multi-field complex where we have identified several satellite exploration opportunities from our extensive regional seismic data base. Production and cash flow from these assets combined with our longer term rig and drilling services commitments provide a strong platform for Endeavour to conduct an active exploratory campaign and confidently pursue resulting development programs."
The producing assets to be purchased include the following net interests: Goldeneye - 7.5% Bittern - 2.422% Alba - 2.25% Caledonia - 2.83% Ivanhoe Rob Roy/Hamish - 23.455% Renee - 77.5% Rubie - 40.780%
In addition, a number of other non-producing assets are included, notably a 55.62% interest in the Rochelle discovery.
Endeavour expects to close this transaction before the end of the year with a January 1, 2006 effective date. The purchase is subject to approval of governmental regulatory authorities and third party consents. Financing commitments have been obtained for the entire purchase price. On a pro-forma basis, the company expects this transaction to be accretive to discretionary cash flow per share.
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