Endeavour Announces Acquisition of U.K. Producing Assets
Endeavour International Corporation (NYSE: END) (LSE: ENDV) today announced that its subsidiary, Endeavour Energy UK Limited, has entered into a purchase and sale agreement to acquire ConocoPhillips' interest in three producing U.K. oil fields in the Central North Sea for $330 million, including approximately $94 million of tax attributes.
Current net production from this asset group is approximately 10,000 boepd. Endeavour estimates of proved and probable reserves ("2P reserves") as of June 30, 2011 are in excess of 33 mmboe.
"This acquisition increases our current ownership interest in the Alba Field, a late Eocene reservoir that has been producing since 1994. Additionally, we add ownership interests in the MacCulloch and Nicol fields. We believe these fields have valuable upside potential," said William L. Transier, chairman, chief executive officer and president. "The production from these Central North Sea fields is almost 100% oil, which will generate a large increase in cash flow to Endeavour and provides a mechanism to accelerate the recognition of our current U.K. tax benefits of almost $300 million after this acquisition. This transaction, which our team has been working on since the beginning of this year, adds significantly to our two existing U.K. development projects, which are estimated to start production during 2012. Upon completion of this transaction and after the start-up of Bacchus and the Greater Rochelle development projects, Endeavour will become one of the largest independent producers in the U.K. North Sea."