Endeavour International

Capex

Endeavour International Corporation announces that the company plans to spend approximately $90 million of capital during 2008 to fund oil and gas exploration, development and producing activities in the North Sea.

More than half of the budget will be directed toward development projects and ongoing investments in producing assets. Some $20 million is expected to be spent for development drilling and facilities improvements to maintain current production levels. Another $30 million will fund the company's efforts in the United Kingdom (UK) to move the Cygnus and Columbus discoveries toward field development plans and for further exploitation of undeveloped reserves in the Renee field on Block 15/27.

An estimated $40 to $50 million will be allocated to five to nine exploration prospects in the North Sea. Approximately 60 percent of the exploration budget will be spent in Norway with the balance dedicated to drilling in the UK. In Norway, Endeavour will drill its first well as an operator with the Jade prospect on PL270 slated to begin drilling during the fourth quarter of 2008. The area is the site of the two Agat natural gas discoveries and the test will set out to identify additional reserves in support of development. Most of the remaining exploratory wells are outside operated. The timing and order of this program will be determined by the completion of ongoing technical work, partner approvals and rig scheduling for individual prospects.

2007 CapEx
Endeavour spend approximately $92 million during 2007 to fund oil and gas exploration and development in the North Sea.

2006 CapEx
Endeavour spent approximately $50 million during 2006 to fund oil and gas exploration and development in the North Sea.

Production

As a result of strong performance from producing assets and the acquisition of producing properties in the United Kingdom in 2006, sales volumes for 2007 increased dramatically from the prior year. For the full-year 2007 sales volumes of 3.3 mmboe or 9,000 boepd compared to full-year 2006 volumes of 1.0 mmboe or 2,800 boepd.

Production for the full year 2006 increased 33 percent from 760,000 BOE in 2005 to 1.01 million BOE in 2006. The increase was primarily due to two months of production from the purchase of interests in seven producing fields in the United Kingdom in the fourth quarter of 2006.

Reserves

Endeavour International reported that proved and probable reserves at year-end 2007 increased to 29.8 million barrels of oil equivalent (mmboe) compared to 29.6 mmboe a year ago. Extensions, discoveries and upward revisions to prior estimates added 3.5 mmboe, more than replacing production of 3.3 mmboe or approximately 9,000 boepd during 2007. The upward revisions in proved and probable reserves were a result of better-than-expected production from the Goldeneye, Brage and Njord fields and increased reserves in the Endeavour operated Rubie, Renee and Rochelle assets (R-blocks). The R-block reserves, which are covered under the existing Field Development Plans, will be developed for additional near-term production. Once development is complete, the R-blocks should add approximately 7,000 boepd of new production, net to Endeavour.

The company's oil and gas proved plus probable reserves increased to 29.6 million barrels of oil equivalent (BOE) as of December 31, 2006 from 6.3 million BOE at year-end 2005. The increase was driven by both acquisitions and successful exploration during the year.

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