General

3 Months Ended

Mar. 31, 2014

General And Guarantor Subsidiaries [Abstract]

General

Note 1 – General

Description of Business

Endeavour International Corporation is an independent oil and gas company engaged in the exploration, development, production and acquisition of energy reserves in the U.S. and U.K.  Endeavour was incorporated under the laws of the state of Nevada on January 13, 2000.  As used in these Notes to Condensed Consolidated Financial Statements, the terms “Endeavour,” “Company,” “we,” “us,” “our” and similar terms refer to Endeavour International Corporation and, unless the context indicates otherwise, its consolidated subsidiaries.  The accompanying financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2013.

2014 Liquidity and Capital Resources

As of March 31, 2014, we had $912.2 million in outstanding indebtedness.  Being highly leveraged, servicing our debt and other long-term obligations will continue to require a significant portion of our cash flow from operations and available cash on hand.  The combination of these debt servicing requirements, capital expenditures and the delay in cash flow resulting from the Rochelle mechanical issues may exceed the cash flow from our current operations.  During 2014, our primary uses of financial resources are expected to be:

· our capital expenditures, primarily related to our drilling activities in the U.K.;

· payments for abandonment obligations,

· payments due under our production payments; and

· interest payments on outstanding indebtedness and payments in support of our reimbursement agreement covering our abandonment obligations.

Since year-end 2013, we have also completed several transactions to improve our liquidity position and extend the maturities of some of our debt and other obligations.  These recent financing activities are designed in part to provide sufficient liquidity to replace the interruption in production at Rochelle that occurred in the first and second quarter of 2014.  These transactions include:

· replacing certain credit facilities which would have expired in 2014;

· replacing reimbursement agreements covering certain of our abandonment liabilities in the U.K. which would have expired in 2014;

· issuing $12.5 million in common stock and warrants; and

· issuing $17.5 million in 6.5% convertible debt.