Endeavour Announces 2005 First Quarter Results
Endeavour International Corporation (Amex: END) reported a 2005 first quarter loss of $2.7 million or $0.04 per diluted share as compared to a loss of $12.6 million or $0.26 per diluted share in 2004. A pre-tax charge of $10.8 million for consideration given in excess of fair value of identifiable assets acquired was included in the first quarter of 2004. Revenues for first quarter 2005 were $7.7 million as compared to basically no revenues during the same period in 2004. The increase was the result of the first full quarter of production from the purchase of OER oil AS in late 2004. Production for the quarter was 169,000 barrels of oil equivalent (BOE), reflecting an average price of $45.66 per BOE.
"We continue to put in place the financial capability and organization required to implement our balanced strategy of exploration and business development in the North Sea," said William L. Transier, co-chief executive officer. "With Norwegian production and strong commodity prices, we are in a position to use our existing cash funds toward growth activities."
"Technical work has been underway for our first exploratory drilling in the UK sector of the North Sea that should commence this summer," said John N. Seitz, co-chief executive officer. "We also continue to focus on expanding our prospect portfolio."
Highlights since the first of the year include: * The completion of a senior notes offering for $81 million - Funds from the private placement to qualified institutional buyers will be used to fund exploration and development activities, working capital and other general corporate purposes. * The acquisition of minority interests in Norwegian company - Endeavour now holds interests in two producing offshore fields and ten production licenses in Norway. * The launch of a $30 million capital expenditure program - More than half of the funds will be spent in the United Kingdom where the company expects to drill four exploratory wells during 2005. The company will also drill up to nine wells on its Norwegian interests in a development effort designed to optimize production and extend the life of the assets. * The initiation of an exploratory program in The Netherlands - Endeavour entered into a license to obtain 15,000 square kilometers of 3-D seismic in the Dutch sector of the North Sea, adding to its existing 79,000 square kilometers of seismic data in the United Kingdom and Norway. * The sale of partnership interest in Thailand - In April, the company sold its partnership interest in a partnership with an indirect interest in a project in Thailand for $19.5 million. This cash and another $8 million of allocated capital for Thailand activity will be redeployed into the North Sea. * The commitment for an offshore rig to drill in the UK sector of the North Sea - Endeavour entered into an agreement in April that secured the use of a semi-submersible drilling rig that will be utilized to drill two exploratory wells on a turnkey basis during 2005.
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