

As of June 30, 2013
	Endeavour International Corporation		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	-	$	2,622	$	128,168	$	-	$	130,790
Accounts receivable		-		2,305		26,307		-		28,612
Current receivables due from affiliates		913,633		22,459		37,414		(973,506)		-
Prepaid expenses and other		-		1,291		32,642		-		33,933
Current Assets		913,633		28,677		224,531		(973,506)		193,335

Property, plant and equipment, net		-		94,711		960,123		-		1,054,834
Goodwill		-		-		259,238		-		259,238
Long-term receivables due from affiliates		-		599,000		-		(599,000)		-
Investments in subsidiaries		57,662		120,058		-		(177,720)		-
Other assets		23,213		6,056		9,796		-		39,065
Total Assets	$	994,508	$	848,502	$	1,453,688	$	(1,750,226)	$	1,546,472

Accounts payable	$	-	$	3,760	$	68,452	$	-	$	72,212
Current maturities of debt		-		-		115,163		-		115,163
Monetary production payment, current portion		-		-		20,833		-		20,833
Current liabilities due to affiliates		22,712		928,335		22,459		(973,506)		-
Accrued expenses and other		28,219		2,654		65,281		-		96,154
Current Liabilities		50,931		934,749		292,188		(973,506)		304,362

Long-term debt		677,632		-		72,262		-		749,894
Long-term liabilities due to affiliates		-		-		599,000		(599,000)		-
Deferred taxes		-		-		125,146		-		125,146
Monetary production payment, long-term portion		-		-		104,167		-		104,167
Other liabilities		3,408		658		130,009		-		134,075
Total Liabilities		731,971		935,407		1,322,772		(1,572,506)		1,417,644

Series C convertible preferred stock		43,703		-		-		-		43,703
Stockholders' equity		218,834		(86,905)		130,916		(177,720)		85,125
Total Liabilities and Equity	$	994,508	$	848,502	$	1,453,688	$	(1,750,226)	$	1,546,472



As of December 31, 2012
	Endeavour International Corporation		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	-	$	27,800	$	31,385	$	-	$	59,185
Accounts receivable		-		2,695		43,486		-		46,181
Current receivables due from affiliates		950,210		36,725		71,964		(1,058,899)		-
Prepaid expenses and other		-		508		20,487		-		20,995
Current Assets		950,210		67,728		167,322		(1,058,899)		126,361

Property, plant and equipment, net		-		92,692		910,749		-		1,003,441
Goodwill		-		-		262,764		-		262,764
Long-term receivables due from affiliates		-		599,000		-		(599,000)		-
Investments in subsidiaries		57,662		120,058		-		(177,720)		-
Other assets		25,200		6,085		18,621		-		49,906
Total Assets	$	1,033,072	$	885,563	$	1,359,456	$	(1,835,619)	$	1,442,472

Accounts payable	$	-	$	2,622	$	57,531	$	-	$	60,153
Current maturities of debt		-		-		15,713		-		15,713
Deferred revenue		-		-		-		-		-
Monetary production payment deposit		-		-		-		-		-
Current liabilities due to affiliates		34,509		987,664		36,726		(1,058,899)		-
Accrued expenses and other		27,548		1,517		61,035		-		90,100
Current Liabilities		62,057		991,803		171,005		(1,058,899)		165,966

Long-term debt		676,413		-		167,380		-		843,793
Long-term liabilities due to affiliates		-		-		599,000		(599,000)		-
Deferred taxes		-		-		141,887		-		141,887
Monetary production payment, long-term portion		-		-		-		-		-
Other liabilities		3,033		561		144,098		-		147,692
Total Liabilities		741,503		992,364		1,223,370		(1,657,899)		1,299,338

Series C convertible preferred stock		43,703		-		-		-		43,703
Stockholders' equity		247,866		(106,801)		136,086		(177,720)		99,431
Total Liabilities and Equity	$	1,033,072	$	885,563	$	1,359,456	$	(1,835,619)	$	1,442,472



For the Three Months Ended June 30, 2013
	Endeavour International Corporation		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	-	$	2,315	$	123,850	$	-	$	126,165
Operating expenses		-		1,844		36,259		-		38,103
DD&A expense		-		1,007		50,916		-		51,923
Impairment of oil and gas properties		-		-		-		-		-
G&A expenses		577		1,701		2,604		-		4,882
Income (loss) from Operations		(577)		(2,237)		34,071		-		31,257

Derivatives:
Unrealized gains (losses)		323		-		(1,600)		-		(1,277)
Interest expense		(20,814)		898		(19,531)		15,000		(24,447)
Letter of credit fees		-		-		(7,128)		-		(7,128)
Other income (expense)		-		14,520		(529)		(15,000)		(1,009)
Income (loss) before taxes		(21,068)		13,181		5,283		-		(2,604)
Income tax expense		-		-		11,281		-		11,281
Net income (loss)		(21,068)		13,181		(5,998)		-		(13,885)
Preferred stock dividends		456		-		-		-		456
Net income (loss) to common shareholders	$	(21,524)	$	13,181	$	(5,998)	$	-	$	(14,341)



For the Six Months Ended June 30, 2013
	Endeavour International Corporation		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	-	$	4,851	$	178,986	$	-	$	183,837
Operating expenses		-		5,459		50,134		-		55,593
DD&A expense		-		2,146		72,724		-		74,870
Impairment of oil and gas properties		-		3,534		-		-		3,534
G&A expenses		1,308		4,313		4,743		-		10,364
Income (loss) from Operations		(1,308)		(10,601)		51,385		-		39,476

Derivatives:
Unrealized gains (losses)		(377)		-		680		-		303
Interest expense		(40,973)		1,500		(36,411)		29,999		(45,885)
Letter of credit fees		-		-		(18,508)		-		(18,508)
Other income (expense)		(1)		28,998		9,873		(29,999)		8,871
Income (loss) before taxes		(42,659)		19,897		7,019		-		(15,743)
Income tax expense		-		-		12,189		-		12,189
Net income (loss)		(42,659)		19,897		(5,170)		-		(27,932)
Preferred stock dividends		911		-		-		-		911
Net income (loss) to common shareholders	$	(43,570)	$	19,897	$	(5,170)	$	-	$	(28,843)



For the Three Months Ended June 30, 2012
	Endeavour International Corporation		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	-	$	2,863	$	20,140	$	-	$	23,003
Operating expenses		-		1,603		4,139		-		5,742
DD&A expense		-		2,474		8,153		-		10,627
Impairment of oil and gas properties		-		19,960		-		-		19,960
G&A expenses		643		2,450		1,937		-		5,030
Income (loss) from Operations		(643)		(23,624)		5,911		-		(18,356)

Derivatives:
Unrealized gains (losses)		(1,448)		-		5,253		-		3,805
Interest expense		(10,281)		(789)		(20,788)		6,602		(25,256)
Letter of credit fees		-		-		(3,064)		-		(3,064)
Loss on early extinguishment of debt		-		-		(21,661)		-		(21,661)
Other income (expense)		-		5,004		987		(6,602)		(611)
Loss before taxes		(12,372)		(19,409)		(33,362)		-		(65,143)
Income tax benefit		-		-		(14,335)		-		(14,335)
Net loss		(12,372)		(19,409)		(19,027)		-		(50,808)
Preferred stock dividends		456		-		-		-		456
Net loss to common shareholders	$	(12,828)	$	(19,409)	$	(19,027)	$	-	$	(51,264)



For the Six Months Ended June 30, 2012
	Endeavour International Corporation		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	-	$	6,620	$	31,549	$	-	$	38,169
Operating expenses		-		3,237		7,403		-		10,640
DD&A expense		-		5,888		12,645		-		18,533
Impairment of oil and gas properties		-		35,700		-		-		35,700
G&A expenses		1,234		5,808		3,311		-		10,353
Income (loss) from Operations		(1,234)		(44,013)		8,190		-		(37,057)

Derivatives:
Unrealized losses		(379)		-		(594)		-		(973)
Interest expense		(13,494)		(2,115)		(38,097)		8,743		(44,963)
Letter of credit fees		-		-		(3,064)		-		(3,064)
Loss on early extinguishment of debt		-		-		(21,661)		-		(21,661)
Other income (expense)		(1)		4,774		688		(8,743)		(3,282)
Loss before taxes		(15,108)		(41,354)		(54,538)		-		(111,000)
Income tax benefit		-		-		(24,929)		-		(24,929)
Net loss		(15,108)		(41,354)		(29,609)		-		(86,071)
Preferred stock dividends		911		-		-		-		911
Net loss to common shareholders	$	(16,019)	$	(41,354)	$	(29,609)	$	-	$	(86,982)



For the Six Months Ended June 30, 2013
	Endeavour International Corporation		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations⁽¹⁾		Consolidated
Cash Flows from Operating Activities:
Net loss	$	(42,659)	$	19,897	$	(5,170)	$		$	(27,932)
Adjustments to reconcile net loss to
net cash provided by (used in) operations
DD&A expense		-		2,146		72,724		-		74,870
Impairment of oil and gas properties		-		3,534		-		-		3,534
Deferred tax benefit		-		-		(2,457)		-		(2,457)
Unrealized (gains) losses on derivatives		377		-		(680)		-		(303)
Amortization of non-cash compensation		318		-		-		1,314		1,632
Amortization of loan costs and discount		3,913		-		4,782		-		8,695
Non-cash interest expense		-		(582)		4,036		-		3,454
Loss on early extinguishment of debt		-		-		-		-		-
Other		44		(8)		(2,480)		-		(2,444)
Changes in operating assets and liabilities:
(Increase) decrease in receivables		-		(19,895)		37,463		-		17,568
(Increase) decrease in other current assets		(8)		16,294		(13,931)		-		2,355
Increase (decrease) in liabilities		39,131		(33,720)		(9,883)		(2,889)		(7,361)
Net Cash Provided by (Used in)
Operating Activities		1,116		(12,334)		84,404		(1,575)		71,611

Cash Flows From Investing Activities:
Capital expenditures		-		(6,694)		(102,195)		1,575		(107,314)
Acquisitions, net of cash acquired		-		(390)		(1,082)		-		(1,472)
Proceeds from sales, net of cash		-		-		-		-		-
Issuance of note receivable to affiliate		-		-		-		-		-
Increase in restricted cash		-		-		-		-		-
Net Cash Used in Investing Activities		-		(7,084)		(103,277)		1,575		(108,786)

Cash Flows From Financing Activities:
Repayments of borrowings		-		-		-		-		-
Borrowings under debt agreements, net
of debt discount		-		-		-		-		-
Borrowings from affiliates		-		-		-		-		-
Proceeds from issuance of MPP		-		-		125,000		-		125,000
Proceeds from issuance of common stock		-		-		-		-		-
Dividends paid		(416)		-		-		-		(416)
Payments for early extinguishment of debt		-		-		-		-		-
Financing costs paid		(700)		(5,760)		(9,344)		-		(15,804)
Other financing		2,232		-		-		(2,232)		-
Net Cash Provided by (Used in)
Financing Activities		1,116		(5,760)		115,656		(2,232)		108,780

Net Change in Cash and Cash Equivalents		-		(25,178)		96,783		-		71,605
Cash and Cash Equivalents, Beginning
of Period		-		27,800		31,385		-		59,185
Cash and Cash Equivalents, End of Period	$	-	$	2,622	$	128,168	$	-	$	130,790



For the Six Months Ended June 30, 2012
	Endeavour International Corporation		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations⁽¹⁾		Consolidated
Cash Flows from Operating Activities:
Net loss	$	(15,108)	$	(41,354)	$	(29,609)	$		$	(86,071)
Adjustments to reconcile net loss to
net cash provided by (used in) operations
DD&A expense		-		5,888		12,645		-		18,533
Impairment of oil and gas properties		-		35,700		-		-		35,700
Deferred tax benefit		-		-		(24,008)		-		(24,008)
Unrealized (gains) losses on derivatives		379		-		594		-		973
Amortization of non-cash compensation		337		-		-		2,777		3,114
Amortization of loan costs and discount		2,899		3,893		519		-		7,311
Non-cash interest expense		160		1,971		3,022		-		5,153
Loss on early extinguishment of debt		-		-		21,661		-		21,661
Other		149		3,351		1,187		-		4,687
Changes in operating assets and liabilities:
(Increase) decrease in receivables		-		74,690		(90,360)		-		(15,670)
(Increase) decrease in other current assets		-		(19,958)		(4,012)		-		(23,970)
Increase (decrease) in liabilities		(508,978)		470,470		65,785		(2,777)		24,500
Net Cash Provided by (Used in)
Operating Activities		(520,162)		534,651		(42,576)		-		(28,087)

Cash Flows From Investing Activities:
Capital expenditures		-		(13,455)		(103,003)		-		(116,458)
Acquisitions, net of cash acquired		-		(26,925)		(201,180)		-		(228,105)
Proceeds from sales, net of cash		-		178		(178)		-		-
Issuance of note receivable to affiliate		-		(500,000)		-		500,000		-
Increase in restricted cash		-		(178)		-		-		(178)
Net Cash Used in Investing Activities		-		(540,380)		(304,361)		500,000		(344,741)

Cash Flows From Financing Activities:
Repayments of borrowings		-		(4,323)		(240,242)		-		(244,565)
Borrowings under debt agreements, net
of debt discount		480,000		-		100,000		-		580,000
Borrowings from affiliates		-		-		500,000		(500,000)		-
Proceeds from issuance of MPP		-		-		-		-		-
Proceeds from issuance of common stock		61,088		-		-		-		61,088
Dividends paid		(416)		-		-		-		(416)
Payments for early extinguishment of debt		-		-		(7,248)		-		(7,248)
Financing costs paid		(20,514)		20,514		(27,500)		-		(27,500)
Other financing		3		(1)		-		1		3
Net Cash Provided by (Used in)
Financing Activities		520,161		16,190		325,010		(499,999)		361,362

Net Change in Cash and Cash Equivalents		-		10,461		(21,927)		-		(11,466)
Cash and Cash Equivalents, Beginning
of Period		-		2,951		103,085		-		106,036
Cash and Cash Equivalents, End of Period	$	-	$	13,412	$	81,158	$	-	$	94,570