Endeavour International Corporation (Amex: END) reports a 2005 third quarter loss of $14.5 million or $0.19 per diluted share as compared to a loss of $4.0 million or $0.06 per diluted share the same quarter in 2004. Earnings for the quarter include a $9.4 pretax charge for impairment of oil and gas properties, reflective of unsuccessful exploration activities during the quarter.
Revenues for the period were $10.9 million, and production was 198,600 barrels
of oil equivalent (BOE). Average oil price for the quarter was $56.08 per
"Our Norwegian production continues to exceed our expectations and
generate cash flow to cover our worldwide corporate expenses, allowing
investor capital to be used for growth activities of the company," said
William L. Transier, co-chief executive officer. "Although we were
disappointed by the results of our first three exploration wells, our cash
position is sufficient to fund the exploration program promised to investors."
"There are still seven more wells to be drilled as part of our exploratory
campaign," said John N. Seitz, co-chief executive officer. "We are confident
that Endeavour can leverage its technical abilities and data base to discover
oil and gas resources in the North Sea from our prospect inventory."
Significant events for the quarter include:
Successful participation in United Kingdom 23rd Seaward Licensing
Round - Endeavour Energy UK Limited was awarded 11 licenses covering
17 blocks in the 23rd Seaward Licensing Round. This adds to the nine
licenses and 18 blocks awarded last year in the 22nd Seaward Licensing
Round. Of the newest awards, Endeavour gained interests in six
licenses covering six blocks in the Central North Sea and will serve
as operator for three of the blocks. In addition, Endeavour was
awarded and will operate two licenses and six blocks in the Inner
Moray Firth. The remaining three licenses are comprised of five
blocks located in the Southern Gas Basin with Endeavour operating two
of the blocks. Of the licenses, eight cover 14 blocks granted under
traditional terms that require the company to fulfill a work program
within four years from the date of award. The remaining three
covering three blocks are under "promote" terms in which the company
pays reduced license fees for a two-year period as evaluations of
exploration potential are conducted. In the UK sector of the North
Sea, Endeavour now has interests in 22 licenses involving 38 blocks
that cover more than one million acres.
- Exploration campaign underway in the United Kingdom sector of the
North Sea - Endeavour plugged and abandoned its first well on Block
31/26b when the company-operated Turnberry well encountered non-
commercial shows of hydrocarbons. Two farm-in wells, Fiacre and
Prometheus, were also drilled during the quarter but encountered non-
commercial quantities of hydrocarbons. Drilling operations are set to
begin next week on the Turriff and Tulliallan prospects on Block
31/26b in the Central Graben. The Turiff well will test an
independent play for a Jurassic Fulmar sandstone objective with a
shallower secondary prospect, Tulliallan, aimed at a Cretaceous
target. Endeavour holds a 60 percent working interest in the well and
serves as operator.
- Continued stable production from Norway - The company's net production in Norway averaged approximately 2,159 BOE during the third quarter.