EX-12.1 5 h31323aexv12w1.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1
Endeavour International Corporation
Computation of Ratios of Earnings to Fixed Charges
(Amounts in thousands)
                                                 
    Nine Months        
    Endede        
    September 30,     Year Ended December 31,  
    2005     2004     2003     2002     2001     2000  
Earnings:
                                                
Income (Loss) before Minority Interest and Taxes
   $ 3,366     $ (22,824 )   $ (36,911 )   $ (4,491 )   $ (68 )   $ (49 )
Adjustments:
                                                
Equity losses
     79       201       1,217       28       —       —  
 
                                    
Adjusted loss before minority interest and taxes
     3,445       (22,623 )     (35,694 )     (4,463 )     (68 )     (49 )
 
                                                
Add: Fixed charges
     3,729       295       3,570       3,708       —       —  
Less: Capitalized interest
     (614 )     —       —       (396 )     —       —  
 
                                    
 
                                                
Earnings
   $ 7,788     $ (22,328 )   $ (32,124 )   $ (359 )   $ (68 )   $ (49 )
 
                                    
 
                                                
Fixed Charges:
                                                
Interest expense
   $ 3,115     $ 295     $ 3,570     $ 3,312     $ —     $ —  
Capitalized interest
     614       —       —       396       —       —  
 
                                    
Total fixed charges
   $ 3,729     $ 295     $ 3,570     $ 3,708     $ —     $ —  
 
                                    
 
                                                
Ratio of earnings to fixed charges
     2.1       —       —       —       —       —  
For purposes of this computation, earnings are defined as pretax earnings from continuing operations before adjustment for minority interest and equity losses in entities with oil and gas properties, plus interest expense, and amortization of debt discount and expense related to indebtedness. Fixed charges are interest expense, including amortization of debt discount and expenses on indebtedness.
Earnings were insufficient to cover fixed charges by $22.6 million, $35.7 million and $4.1 million for the years ended December 31, 2004, 2003 and 2002, respectively.