Endeavour International Corp. Reports Operating Results (10-K)
Endeavor International Corp. has a market cap of $336.7 million; its shares were traded at around $13.58 with a P/E ratio of 12 and P/S ratio of 4.6.
Highlight of Business Operations:As of December 31, 2010, our estimated proved reserves were 18.4 MMBOE, up 1.1% from 18.2 MMBOE as of December 31, 2009, of which approximately 70% were located in the U.K. and approximately 30% were located in the U.S., and 19.4% of which were proved developed reserves. Our 1.7 MMBOE of net reserve additions before production in 2010 replaced 111% of our production during the year. We also achieved average sales volume of 4,115 BOE/d for the year ended December 31, 2010, a 7.7% increase from 2009, implying a reserve life index of approximately 12.2 years based on our reserves as of December 31, 2010.
At December 31, 2010, we held a 10% working interest in our Bacchus field asset, which is operated by Apache Corporation, who owns a 50% working interest. On February 23, 2011, we closed our acquisition of an additional 20% working interest in the Bacchus development for approximately $9.2 million in cash payable at closing and approximately $6.2 million in cash payable three months after first oil is produced. In addition, we paid capital costs previously incurred by the seller of $9.4 million. Following the acquisition, we hold an aggregate working interest of 30%. As of December 31, 2010, our 0.2 MMBOE of estimated proved reserves in the Bacchus area were 95% oil.
The Greater Rochelle area is comprised of three blocks in the North Sea, including our interests in blocks 15/27 and 15/26c. We refer to these blocks as our East Rochelle field and our West Rochelle field, respectively. In the East Rochelle field in block 15/27, we hold a 55.6% working interest and are the operator, while our partner Nexen Petroleum U.K. Limited (Nexen) holds the remaining working interest. In the West Rochelle field in block 15/26c, we hold a 50% working interest and are the operator. Nexen and Premier Oil plc (Premier) have each farmed into block 15/26c for a 25% working interest. In the third block of the Greater Rochelle area, block 15/26b, Nexen and Premier are partners, each with a 50% working interest.
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