Endeavour's 3Q Earnings up 64%

Endeavour (Amex: END) reported third quarter 2007 revenues of $47.2 million as compared to $31.6 million during the second quarter of 2007. Earnings before interest, taxes, depreciation and amortization (EBITDA) were up 64 percent sequentially to $33.9 million in the third quarter of 2007 from $20.7 million in the second quarter. Discretionary cash flow was $27.2 million in the third quarter compared to $17.8 million last quarter.

Financial results for the first nine months of 2007 reflected revenues of $121.6 million as compared to $22.8 million for the same period of 2006. EBITDA increased from a negative $1.1 million in the nine months in 2006 to $92.3 million in the nine months of 2007. Discretionary cash flow was $79.4 million in the first nine months as compared to $1.3 million for the same period in 2006.

"In the third quarter, our assets continued to generate strong cash flow from production of 9,700 barrels of oil equivalent per day," said William L. Transier, chairman, chief executive officer and president. "During the first three quarters, we have decreased our debt by $40 million while spending $63 million on the development of our producing assets and exploration projects. Importantly, our executive team is completely in place with the addition of two highly experienced professionals during the quarter. We now have the team, the base of operations and the opportunity to grow our company to the next level."

On a GAAP basis, the company reported a net loss to common stockholders for the 2007 third quarter of $11.7 million or $0.09 per diluted share as compared to income of $15.2 million or $0.17 per diluted share for the same quarter in 2006. Net loss for the third quarter 2007 would have been $0.6 million or breakeven per share without the effect of derivative transactions and currency impacts on balance sheet items.

Significant events for the second half of the year include:

• Addition of two new members to executive team -- In October, John G. Williams was named executive vice president of exploration and J. Michael Kirksey was appointed executive vice president and chief financial officer.
• Strong production volumes -- Oil and gas sales for the quarter averaged 9,700 barrels of oil equivalent per day, higher than the second quarter average of 7,800 barrels of oil equivalent per day.
• Appraisal of Columbus discovery -- Appraisal operations continue on Block 23/16f in the United Kingdom sector of the Central North Sea. The well is located approximately three kilometers north of the discovery well that was drilled in late 2006.
• Continued drilling in the Norwegian North Sea -- Extension drilling activities are underway on an appraisal and future producing well in the Njord Northwest flank discovered in 2000 adjacent to the Njord field.
• Approval of the realignment of interests in two Norwegian blocks -- Endeavour assumed operatorship of PL 270 during the quarter. The company now serves as operator and holds a 65 percent working interest in PL 270 and PL 246 encompassing Block 35/3 on the Norwegian Continental Shelf. As operator, the company intends to accelerate the exploration and development of the Agat natural gas discoveries and pursue other exploration prospects in these two blocks.
• Participation in the Norwegian APA 2007 Licensing Round -- Endeavour for the third year in a row submitted applications for the offshore licensing round conducted by the Norwegian Ministry of Petroleum and Energy. Industry participation was very high and awards are expected in early 2008.

Guidance on Year 2007 Estimates Remains Unchanged

The table below sets forth estimates of the company's operating statistics for the full year ending December 31, 2007, in which Endeavour expects production of 9,000 - 9,400 BOEPD for the year. This reflects the full year impact of the acquisition of United Kingdom producing assets at the end of 2006 and sales of production from the Enoch field. Gas production is expected to represent 40 percent of total production. For the nine months ending September 30, 2007 production averaged 9,200 BOEPD.