Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ENDEAVOUR INTERNATIONAL CORP | d273898d8k.htm |
| EX-99.1 - PRESS RELEASE - ENDEAVOUR INTERNATIONAL CORP | d273898dex991.htm |
 North
Sea Asset Acquisition
Exhibit 99.2 |
 Disclaimers/Forward Looking Statements
2
This presentation contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements include
statements that express a belief, expectation, or intention, as well as those that are not
statements of historical fact, and may include projections and
estimates concerning the timing and success of specific projects and our future production,
revenues, income and capital spending. Our forward-looking
statements are generally accompanied by words such as "estimate," "project," "predict," "believe,"
"expect," "anticipate," "potential,"
"plan," "goal" or other words that convey the uncertainty of future events or outcomes. We caution you not to rely on them
unduly. We have based these forward-looking statements on our
current expectations and assumptions about future events. While our management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive, regulatory and other risks,
contingencies and uncertainties, most of which are difficult to predict
and many of which are beyond our control. These risks, contingencies and uncertainties
relate to the following: discovery, estimation, development and
replacement of oil and gas reserves; decreases in proved reserves due to technical or economic
factors; drilling of wells and other planned exploitation activities;
timing and amount of future production of oil and gas; the volatility of oil and gas prices;
availability and terms of capital; operating costs such as lease
operating expenses, administrative costs and other expenses; our future operating or financial
results; amount, nature and timing of capital expenditures, including
future development costs; cash flow and anticipated liquidity; availability of drilling and
production equipment; uncertainties related to drilling and production
operations in a new region; cost and access to natural gas gathering, treatment and pipeline
facilities; business strategy and the availability of acquisition
opportunities; and factors not known to us at this time. Any of these factors, or any combination of
these factors, could materially affect our future financial condition
or results of operations and the ultimate accuracy of a forward-looking statement. The
forward-looking statements are not guarantees of our future
performance, and our actual results and future developments may differ materially from those
projected in the forward-looking statements. In addition, any or
all of our forward-looking statements included in this presentation may turn out to be incorrect.
They can be affected by inaccurate assumptions we might make or by
known or unknown risks and uncertainties, including those included in our Annual Report
on Form 10-K for the year ended December 31, 2010 and our Quarterly
Reports on Form 10-Q for the quarterly periods ended June 30, 2011 and September 30,
2011.
As of January 1, 2010, the Securities and Exchange Commission
(“SEC”) changed its rules to permit oil and gas companies, in their filings with the SEC, to
disclose not only proved reserves, but also probable reserves and
possible reserves. Proved oil and gas reserves are those quantities of oil and gas, which, by
analysis of geosciences and engineering data, can be estimated with
reasonable certainty to be economically producible — from a given date forward, from
known reservoirs, and under existing economic conditions, operating
methods, and government regulations — prior to the time at which contracts providing the
right to operate expire. Probable reserves include those
additional reserves that a company believes are as likely as not to be recovered and possible reserves
include those additional reserves that are less certain to be recovered
than probable reserves. We do not represent that the probable reserves described herein meet
the recoverability thresholds established by the SEC in its
definitions. Investors are urged to also consider closely the disclosure in our filings with the SEC,
available from our website at www.endeavourcorp.com. Endeavour is
also subject to the requirements of the London Stock Exchange and considers the
disclosures in this presentation to be appropriate and/or required
under the guidelines of that exchange. |
 Transaction Strategic Highlights
Substantially grows Endeavour’s North Sea producing asset base,
expanding exposure to favourably priced Brent crude oil
•
Adds approximately 10,000 boepd to current production
•
2P Reserve additions in excess of 33 mmboe
•
Three existing oil fields –
Alba, MacCulloch and Nicol
Adds significant scope and scale, together with Bacchus and Greater
Rochelle, Endeavour becomes one of larger independents in the North
Sea
Significantly improved operating profile and credit metrics, adding
approximately $300 million in Ebitda at current production levels
Valuable upside potential with the new fields
Low annual maintenance CapEx going forward
Accelerates the monetization of existing U.K. tax benefits
3 |
 Transaction Summary
Deal Value: $330 million with a 28% allocation to tax basis
•
Purchase price to be reduced by cash flow from the effective economic date to
closing (Approximately $72 million after tax if measured at 12/31/11)
•
Effective date: January 1, 2011
Current performance:
•
2011 Net Production: average of approximately 10,000 boepd
•
June 30, 2011 2P Reserves: in excess of 33 mmboe
Expected closing in the first half of 2012
•
Subject to normal government regulatory approval; partner consents and other
customary closing conditions
4 |
 Transaction Details
5
(in millions)
Purchase Price
$ 330
2011 Cash Flow Estimate*
(72)
Tax Benefit to Endeavour**
(58)
Adjusted Purchase Price
$ 200
* Estimates as of December 31, 2011
** Tax value of $58 million = $94 million x 62% tax rate
|
 84%
16%
54%
27%
19%
41%
59%
Significant
Production
Growth
–
Acquisition
and
Near-Term
Projects
6
3,500 –
4,500 boepd
13,000 –
18,000 boepd
Current Production
Pro-forma Production with
Bacchus on-line and the
acquisition of N. Sea Assets
U.K. Oil
U.S. Gas
U.K. Gas
Pro-forma Production with
Greater Rochelle on-line
18,000 –
25,000 boepd |
 Pro
Forma Position of Endeavour in the U.K. 7
Mid-Cap Market
Source: Woodmac Data
Endeavour + U.K.
Acquisition
2011 U.K. Company Data
END U.K.(including Bacchus and Greater
Rochelle) + New U.K. Asset Acquisition |
 Alba
Field Overview: Block 16/26a 450ft water depth
Late Eocene reservoir at ~6,200ft depth
•
Massive homogeneous unconsolidated sands
with excellent quality
35 Platform and subsea wells
Infill drilling used to maximize
reservoir performance
Oil exported by tanker
8
END WI:
25.68%*
Operator:
Chevron (23.37% WI)
Partners:
Statoil (17% WI)
BP (13% WI)
Total (12.65% WI)
CIECO/Itochu (8% WI)
Discovered/1
st
Production
1984/1994
Current Production Rate
~7,500 boepd
* Combination of END’s existing WI 2.25% and the COP’s interest of
23.43%. |
 MacCulloch Field Overview: Block 15/24b
490ft water depth
Paleocene reservoir at ~6,200ft depth
•
Large and extensive natural aquifer pressure
support
5 active wells
FPSO off-take solution
Currently operated by ConocoPhillips.
Transfer of operatorship to Endeavour
subject to partner consent
9
END WI:
40% WI
Partners:
ENI(40% WI)
Noble Energy (14% WI)
Talisman (6% WI)
Discovered/1
st
Production
1990/1997
Current Production Rate
~3,100 boepd |
 Nicol
Field
Overview
–
Block
15/25a
480ft water depth
Paleocene reservoir at ~6,400ft depth
•
Large, extensive natural aquifer pressure
support
One active well
Subsea tie-back to the Brenda
manifold with a booster pump
10
END WI:
18%
Operator:
Premier(70% WI)
Partners:
Eni (12% WI)
Discovered/1
st
Production
1988/2006
Current Production Rate
~200 boepd |
 LSE:ENDV
NYSE:END
www.endeavourcorp.com
Mike Kirksey
Chief Financial Officer
(713) 307-8788 / +44 (0)207 451 2381
mike.kirksey@endeavourcorp.com
Darcey Matthews
Director of Investor Relations
(713) 307-8711
darcey.matthews@endeavourcorp.com
INVESTOR CONTACTS: |