"We enter the year very encouraged by the level of interest in our North Sea-focused business model and in the number of opportunities to grow our company through a mix of strategies," said John N. Seitz and William L. Transier, co-chief executive officers. "In little more than a year, we have built an inventory of high-quality prospects and a production base from which to strengthen our position in a revitalizing oil and gas producing basin. Preparatory work is already underway to drill several exploratory opportunities in the United Kingdom, and we continue to pursue an ongoing development program on our assets in Norway."
Nearly half of the 2005 capital program will be spent in the United Kingdom sector of the North Sea where a first well is expected to spud by the end of the summer. The company also plans to allocate approximately $8 million to drill up to nine wells on its Njord and Brage interests in Norway. The development effort is designed to optimize production and extend the life of the assets acquired last year. Another $4 million will fund the development of an onshore gas discovery located in Thailand, the company's only remaining asset outside the North Sea.
The remainder of the capital budget will be spent to initiate an exploratory program in the Netherlands where Endeavour has entered into an agreement to obtain 3-D seismic data available for the first time covering approximately 15,000 square kilometers. The company also expects to participate in additional licensing rounds during the year in the United Kingdom and Norway.
Endeavour reported 2004 earnings that reflected the transition of the company from primarily a domestic U.S. producer to an oil and gas exploration company in the North Sea. A loss of $23.4 million or $0.37 per diluted share was recorded for full-year 2004. Revenues for the year were $3.7 million. Average oil price for the year was $39.27 per barrel of oil equivalent. Production for the year was 93,277 barrels of oil equivalent (BOE), primarily reflecting the Norwegian producing assets owned by OER Oil AS, which was acquired in November. Endeavour now holds working interests in the Brage and Njord oil and gas fields in the Norwegian North Sea. Total proved reserves for the company as of December 31, 2004 were 7.5 million BOE.
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