EX-99.1 2 h66776exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
Unaudited Pro Forma Condensed Statements of Operations
of Endeavour International Corporation
(Amounts in thousands, except per share data)
The accompanying pro forma financial statements are presented in accordance with Article 11 of Regulation S-X. The following unaudited pro forma condensed statement of operations reflects adjustments to give affect to the following:
    Endeavour International Corporation’s (“Endeavour”) sale of our Norwegian subsidiary, Endeavour Energy Norge AS, and a revolving credit facility between Endeavour Operating Corporation, a wholly-owned subsidiary of Endeavour, and Endeavour Energy Norge AS for cash consideration of $150 million (the “Norway Sale”).
 
    The income statement data assume that the Norway Sale was consummated on January 1, 2006.
We expect to recognize a gain related to the Norway Sale of approximately $47 million, after the allocation of $68 million of goodwill to the assets sold.
The capacity and amounts available under our senior bank facility is subject to a number of considerations, including certain borrowing base limitations. Upon any sale of assets that are included in the borrowing base, such as the Norway Sale, a borrowing base redetermination is required. Subsequent to March 31, 2008, we have repaid approximately $38.8 million of principal, inclusive of the amount required following the Norway Sale, thereby reducing the amount outstanding under the senior bank facility to $63.5 million.

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Endeavour International Corporation
Unaudited Pro Forma Condensed Statement of Operations
For the Year Ended December 31, 2008
(Amounts in thousands, except per share data)
                         
            Pro Forma    
    Endeavour   Adjustments   Pro Forma
 
Revenues
  $ 260,441     $ 89,660     $ 170,781  
 
                       
Expenses:
                       
Operating expenses
    46,576       14,259       32,317  
Depreciation, depletion and amortization
    81,734       14,408       67,326  
Impairment of oil and gas properties
    36,970             36,970  
General and administrative
    19,636       3,704       15,932  
 
 
                       
Total expenses
    184,916       32,371       152,545  
 
 
                       
Operating Profit
    75,525       57,289       18,236  
 
                       
Other Income (Expense):
                       
Derivatives:
                       
Unrealized gain
    76,666             76,666  
Realized loss
    (28,578 )           (28,578 )
Interest expense
    (22,548 )     427       (22,975 )
Other
    12,154       5,528       6,626  
 
 
                       
Total Other Income
    37,694       5,955       31,739  
 
 
                       
Income Before Income Taxes
    113,219       63,244       49,975  
Income Tax Expense
    56,729       32,613       24,116  
 
 
                       
Net Income
    56,490       30,631       25,859  
Preferred Stock Dividends
    10,809             10,809  
 
 
                       
Net Income to Common Stockholders
  $ 45,681     $ 30,631     $ 15,050  
 
 
                       
Net Income Per Common Share:
                       
Basic
  $ 0.36             $ 0.12  
 
Diluted
  $ 0.32             $ 0.12  
 
 
                       
Weighted Average Number of Common Shares Outstanding:
                       
Basic
    128,312               128,312  
 
Diluted
    178,312       (50,000 ) (A)     128,312  
 
(A)   To adjust diluted weighted average number of common shares outstanding for anti-dilutive securities.

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Endeavour International Corporation
Unaudited Pro Forma Condensed Statement of Operations
For the Year Ended December 31, 2007
(Amounts in thousands, except per share data)
                         
            Pro Forma    
    Endeavour   Adjustments   Pro Forma
 
Revenues
  $ 176,064     $ 40,188     $ 135,876  
 
                       
Expenses:
                       
Operating expenses
    41,044       13,781       27,263  
Depreciation, depletion and amortization
    76,850       7,868       68,982  
Impairment of oil and gas properties
                 
General and administrative
    19,878       4,025       15,853  
 
 
                       
Total expenses
    137,772       25,674       112,098  
 
 
                       
Operating Profit
    38,292       14,514       23,778  
 
                       
Other Income (Expense):
                       
Derivatives:
                       
Unrealized loss
    (89,132 )           (89,132 )
Realized gain
    12,048             12,048  
Interest expense
    (18,742 )     540       (19,282 )
Other
    (723 )     (958 )     235  
 
 
                       
Total Other Expense
    (96,549 )     (418 )     (96,131 )
 
 
                       
Income (Loss) Before Income Taxes
    (58,257 )     14,096       (72,353 )
Income Tax (Benefit) Expense
    (9,180 )     13,028       (22,208 )
 
 
                       
Net Income (Loss)
    (49,077 )     1,068       (50,145 )
Preferred Stock Dividends
    11,238             11,238  
 
 
                       
Net Loss to Common Stockholders
  $ (60,315 )   $ 1,068     $ (61,383 )
 
 
                       
Net Loss Per Common Share:
                       
Basic
  $ (0.49 )           $ (0.50 )
 
Diluted
  $ (0.49 )           $ (0.50 )
 
 
                       
Weighted Average Number of Common Shares Outstanding:
                       
Basic
    123,118               123,118  
 
Diluted
    123,118               123,118  
 

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Endeavour International Corporation
Unaudited Pro Forma Condensed Statement of Operations
For the Year Ended December 31, 2006
(Amounts in thousands, except per share data)
                         
            Pro Forma    
    Endeavour   djustments   Pro Forma
 
Revenues
  $ 54,131     $ 29,250     $ 24,881  
 
                       
Expenses:
                       
Operating expenses
    15,568       11,091       4,477  
Depreciation, depletion and amortization
    20,164       6,333       13,831  
Impairment of oil and gas properties
    849             849  
General and administrative
    21,924       4,684       17,240  
 
 
                       
Total expenses
    58,505       22,108       36,397  
 
 
                       
Operating Profit (Loss)
    (4,374 )     7,142       (11,516 )
 
                       
Other Income (Expense):
                       
Derivatives:
                       
Unrealized gain
    34,531             34,531  
Realized gain (loss)
                 
Interest expense
    (7,941 )     630       (8,571 )
Other
    (5,141 )     (522 )     (4,619 )
 
 
                       
Total Other Income (Expense)
    21,449       108       21,341  
 
 
                       
Income Before Income Taxes
    17,075       7,250       9,825  
Income Tax Expense
    23,913       9,043       14,870  
 
 
                       
Net Loss
    (6,838 )     (1,793 )     (5,045 )
Preferred Stock Dividends
    1,991             1,991  
 
 
                       
Net Loss to Common Stockholders
  $ (8,829 )   $ (1,793 )   $ (7,036 )
 
 
                       
Net Loss Per Common Share:
                       
Basic
  $ (0.10 )           $ (0.08 )
 
Diluted
  $ (0.10 )           $ (0.08 )
 
 
                       
Weighted Average Number of Common Shares Outstanding:
                       
Basic
    86,636               86,636  
 
Diluted
    86,636               86,636  
 

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