2010-08-31-2010-08-31-2010-10-19

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
110MM
Description

Acquired 12.5% WI in the Cygnus development in the U.K. North Sea, gaining 29 MMcf/d, 80 BOE gross reserves.

Bayerngas UK Ltd., the U.K. oil and gas subsidiary of privately held, Oslo, Norway-based Bayerngas Norge AS, has closed its acquisition of the Cygnus assets in the U.K. North Sea held by Endeavour International Corp., Houston, (NYSE Amex: END) for US$110 million cash.

Cygnus Field is in the Southern Gas Basin of the North Sea. Endeavour has 12.5% working interest in the Cygnus development. The 44/12a-5 appraisal well was tested during the second quarter with initial production of 29 million cubic feet of gas per day. Estimated gross reserves are 80 million barrels of oil equivalent.

Endeavour chairman, chief executive and president William Transier says, "The sale of our Cygnus asset and the recent completion of the financing transaction places Endeavour in a fully funded position to execute our North Sea and United States opportunities and achieve near-term production and cash flow growth. Our successful U.S. initiative has already increased current daily production for the company to nearly 6,000 barrels of oil equivalent per day with approximately half from the U.S."

The other interest holders in the Cygnus development are GDF Suez (38.75%, operator) and Venture North Sea (48.75%).

Endeavour will use the proceeds from this sale and the recently completed financing transaction to focus on its Rochelle and Bacchus development projects in the U.K. North Sea and onshore Haynesville shale gas play in the U.S.

Endeavour says, "The Cygnus transaction brings to close the strategic review process regarding our North Sea assets and exemplifies the underlying value of our remaining portfolio in the U.K. and our long-term ability to build value for our investors. This sale allows us to reallocate resources to nearer term growth projects and take execution risk out of our business model."

Jefferies International Ltd. and Lambert Energy Advisory Ltd. were financial advisors to Endeavour.