Endeavour Ups Reserves Nearly Five-fold

Endeavour International Corporation on Monday announced its fourth-quarter and full-year financial and operational results that included a 470-percent increase in proved plus probable reserves.

The company's oil and gas proved plus probable reserves increased to 29.6 million barrels of oil equivalent (BOE) as of December 31, 2006 from 6.3 million BOE at year-end 2005. The increase was driven by both acquisitions and successful exploration during the year.

"Endeavour was transformed in 2006 from a start-up entity to a balanced exploration and production company with substantial growth in production and cash flows expected in 2007," said William L. Transier, chairman, chief executive officer and president. "Our reserve base increased almost five-fold with the acquisition of interests in UK fields and two exploratory discoveries during the year. We will launch our 2007 exploration campaign in the second quarter and anticipate aggressively moving forward with four development projects."

Revenues for the fourth quarter were $31.3 million compared to revenues of $11.0 million for the same period in 2005. Production for the quarter was 595,000 BOE, an increase from 205,000 BOE for the fourth quarter of 2005. Revenues for full-year 2006 were $54.1 million, up from $38.7 million the previous year. Production for the year increased 33 percent from 760,000 BOE in 2005 to 1.01 million BOE. The increase was primarily due to two months of production from the purchase of interests in seven producing fields in the United Kingdom in the fourth quarter of 2006.

The company reported a fourth-quarter operating profit of $5.4 million compared to an operating loss of $17.2 million for the same quarter in 2005. For the full-year 2006, Endeavour recorded an operating loss of $4.3 million compared to an operating loss of $28.0 million for 2005.

A net loss to common stockholders of $6.7 million or $0.06 per diluted share was recorded in the fourth quarter compared to a loss of $25.6 million or $0.34 per diluted share in the same period of 2005. For the full-year 2006, the company recorded a net loss to common stockholders of $8.8 million or $0.10 per diluted share as compared to a loss of $31.5 million or $0.42 per diluted share for the full-year 2005.

Significant events for the company include:

Increased production from acquisition of interests in the United Kingdom - Endeavour gained a position in seven producing oil and gas fields in the Central North Sea with a purchase of assets during the fourth quarter. Combined with production from its Njord and Brage interests in Norway, the company is currently producing approximately 10,000 barrels of oil equivalent per day (BOEPD).

Exploration success and ongoing progress with exploration campaign - Endeavour participated in the drilling of three wells during 2006, two of which were discoveries. Drilling will commence for the 2007 exploration program in the second quarter.

     *  Cygnus, Block 44/12, Southern Gas Basin -- The well successfully
        tested as a gas discovery in one fault block of a potential multiple
        fault block accumulation.  The well extended northward the limit of
        gas-bearing sands in the Leman sandstone in the Rotliegend formation.
        Endeavour holds a 12.5 percent interest in the well.
     *  Columbus, Block 23/16f, Central Graben -- During the fourth quarter,
        the company drilled the Columbus prospect and encountered a material
        gas column that tested at 17.5 million cubic feet of gas and 1,060
        barrels of condensate per day.  Endeavour operated the drilling and
        testing of the well and holds a 25 percent interest in the license.
     *  Bacchus, Block 22/6S (N), Central Graben -- Endeavour also
        participated in the drilling of an appraisal well on the Bacchus
        prospect in the fourth quarter near the Forties Field.  The results of
        the well were not definitive and evaluations are continuing to
        determine commerciality of the field.  Endeavour holds a 10 percent
        interest in the license.
     *  Howgate, Block 9/4a, North Viking Graben -- The company has elected
        not to exercise its right to take an interest in the Howgate prospect
        in Block 9/4a, incurring no capital expenditures for the drilling of
        the well.
     *  Balgownie, Block 30/23b, Central Graben -- The 2007 exploration
        program will commence in the second quarter with the drilling of the
        Balgownie prospect that will target a Fulmar sand objective.
        Endeavour is the operator.

Moved four projects toward development - Endeavour is in final stages of development of the Enoch Field on Block 16/13a that is expected to contribute initial production of 1,000 barrels of oil equivalent per day (BOEPD) in the second quarter of the year. Endeavour holds an eight percent interest in the field. Three other projects are moving toward development that the company estimates will add approximately 4,000 net BOEPD by late 2009.

     *  Columbus discovery -- Plans for commercialization include the drilling
        of an appraisal well during the summer to extend the limits of the
        field and establish its production rate potential.
     *  Cygnus discovery -- The first development well is slated for drilling
        at the Cygnus gas discovery around year end.
     *  Rochelle development -- The company expects to drill a development
        well in 2008 at the undeveloped Rochelle discovery.  Plans call for
        the well to tie-back to a nearby floating production unit.  Endeavour
        is operator of Rochelle and holds a 55.62 percent interest.

Expanded exploration leasehold position - Endeavour continues to be successful in annual offshore licensing rounds held in the UK and Norway. Total leasehold position held by the company is approximately 2.4 million acres in the UK and Norwegian sectors of the North Sea and in the Irish Sea.

* UK 24th Seaward Licensing Round - The UK Department of Trade and Industry awarded the company eight licenses covering 10 blocks, five of which will be operated by Endeavour. * Awards in Predefined Areas (APA Round) - Endeavour was awarded five production licenses on the Norwegian Continental Shelf in the license round conducted by the Ministry of Petroleum and Energy. It will serve as operator of two licenses with a non-operated ownership in the three other licenses. * Slyne-Erris-Donegal Bid Round - The Department of Communications, Marine and Natural Resources in Ireland granted Endeavour a frontier exploration license covering an area in the Donegal Basin of the Irish Sea. Guidance on Year 2007 Estimates

The table below sets forth the current estimates of the company's operating statistics for the full year ending December 31, 2007. These estimates are based on the historical operating performance and trends, estimates of oil and gas reserves as of December 31, 2006 and planned capital and operating budget for 2007.

2007 Estimated Average Production (A) Daily Production (boepd) 8,800 to 9,200 Oil Price Differentials (B) $(3.00) Gas Percentage of Total 38% Gas Price Differentials (B) $(0.35) Lease operating expense (per barrel) $12-13 (A) Actual results may differ materially from these estimates. (B) For purposes of the 2007 estimates, assumptions of price differentials are based on location, quality and other factors, excluding the effects of derivative financial instruments. Gas price differentials are stated as premiums (discounts) from National Balancing Point pricing, and oil price differentials are stated as premiums (discounts) from Dated Brent pricing.

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.

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