Endeavour Sees Loss in 1Q06
Endeavour International Corporation reported a 2006 first quarter loss of $6.9 million or $0.09 per diluted share as compared to a loss of $2.7 million or $0.04 per diluted share in the same quarter in 2005. Revenues for first quarter 2006 were $8.5 million as compared to $7.7 million during the same period in 2005. Production for the quarter was 153,110 barrels of oil equivalent (BOE), reflecting an average price of $55.36 per BOE.
"We continue to make progress on the execution of our business model by testing our current exploration well and committing to a rig to assure the drilling of our growing exploration inventory next year," said William L. Transier, co-chief executive officer. "However, we are being challenged by availability of services and equipment and declining production rates in Norway."
"We have taken important steps this quarter to broaden and deepen our exploratory portfolio," added John N. Seitz, co-chief executive officer. "We have added highly-prospective acreage, committed to acquire proprietary 3-D seismic data and continued to plan for the 2007 drilling program."
Highlights since the first of the year include: * Completion of drilling of the Cygnus well - The Cygnus well located on Block 44/12 in the Southern Gas Basin in the United Kingdom sector of the North Sea was drilled to a total depth of 11,870 feet measured depth (11,564 feet true vertical depth). Flow testing operations are continuing at the targeted Leman sandstone objective and additional carboniferous zones. Results will be released upon completion of the testing program. * Commitment for drilling rig - Endeavour Energy UK Limited has entered into a rig commitment for the United Kingdom sector of the North Sea for 220 days over a one-year period beginning in March 2007. The arrangement with Applied Drilling Technology International, a division of GlobalSantaFe, will be for the GSF Magellan, a heavy-duty harsh environment jack-up suitable for most drilling activities the company will operate in 2007-2008. The company intends to finalize the rig contract soon. * Contract for first 3-D seismic on Endeavour blocks in the Inner Moray Firth - Endeavour entered into a seismic acquisition contract for a proprietary 3-D survey covering 500 square kilometers on five blocks in the Inner Moray Firth acquired in the UK 23rd Seaward Licensing Round in 2005. Acquisition and processing should be completed by the end of the year in preparation for exploratory wells expected to be drilled in the area in 2007.
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.