ENDEAVOUR INTERNATIONAL CORP - FORM 8-K - EX-99.1 - EX99.1

ENDEAVOUR INTERNATIONAL CORP - FORM 8-K - EX-99.1 - EX99.1 - December 22, 2014

Attached files

Attached files

ENDEAVOUR INTERNATIONAL CORP Reports

file	filename
8-K - 8-K - ENDEAVOUR INTERNATIONAL CORP	d841220d8k.htm

Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: Endeavour Operating Corporation, et al.¹

Case No. 14-12308

Reporting Period: 11/1/2014 – 11/30/2014

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month

Submit copy of report to any official committee appointed in the case.

REQUIRED DOCUMENTS

Form No.

Document
Attached

Explanation
Attached

Affidavit/
Supplement
Attached

Schedule of Cash Receipts and Disbursements

MOR-1

YES

Bank Reconciliation (or copies of debtor’s bank reconciliations)

MOR-1a

YES

Schedule of Professional Fees Paid

MOR-1b

YES

Copies of bank statements

Cash disbursements journals

Statement of Operations

MOR-2

YES

Balance Sheet

MOR-3

YES

Status of Post-petition Taxes

MOR-4

YES

Copies of IRS Form 6123 or payment receipt

Copies of tax returns filed during reporting period

Summary of Unpaid Post-petition Debts

MOR-4

YES

Listing of aged accounts payable

MOR-4

YES

Accounts Receivable Reconciliation and Aging

MOR-5

YES

Debtor Questionnaire

MOR-5

YES

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.


Signature of Debtor				Date

Signature of Joint Debtor				Date

/s/ Catherine L. Stubbs
Signature of Authorized Individual*				Date

Catherine L. Stubbs				Senior Vice President and CFO
Printed Name of Authorized Individual				Title of Authorized Individual

^*	Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

The Debtors in these chapter 11 cases and the last four digits of each Debtor’s taxpayer identification number are as follows: Endeavour Operating Corporation (6552); Endeavour International Corporation (8389); Endeavour Colorado Corporation (0067); END Management Company (7578); Endeavour Energy New Ventures Inc. (7563); Endeavour Energy Luxembourg S.à r.l. (2113). The Debtors’ principal offices are located at 811 Main Street, Suite 2100, Houston, Texas 77002.

In re Endeavour Operating Corporation, et al.

Debtor

Case No. 14-12308

Reporting Period: 11/1/2014 – 11/30/2014

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Amounts reported should be per the debtor’s books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filled. The amounts reported in the “CURRENT MONTH—ACTUAL” column must equal the sum of the four bank account columns. The amounts reported in the “PROJECTED” columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR-1 (CONT)]

BANK ACCOUNTS

CURRENT MONTH

CUMULATIVE
FILING TO DATE

OPER.

PAYROLL

TAX

OTHER

ACTUAL

PROJECTED

ACTUAL

PROJECTED

CASH BEGINNING OF MONTH

SEE EXHIBIT A

RECEIPTS

CASH SALES

ACCOUNTS RECEIVABLE

LOANS AND ADVANCES

SALE OF ASSETS

OTHER (ATTACH LIST)

TRANSFERS (FROM DIP ACCTS)

TOTAL RECEIPTS

DISBURSEMENTS

NET PAYROLL

PAYROLL TAXES

SALES, USE & OTHER TAXES

INVENTORY PURCHASES

SECURED RENTAL/LEASES

INSURANCE

ADMINISTRATIVE

SELLING

OTHER (ATTACH LIST)

OWNER DRAW*

TRANSFERS (TO DIP ACCTS)

PROFESSIONAL FEES

U.S. TRUSTEE QUARTERLY FEES

COURT COSTS

TOTAL DISBURSEMENTS

NET CASH FLOW

(RECEIPTS LESS DISBURSEMENTS)

CASH - END OF MONTH

*	COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE

THE FOLLOWING SECTION MUST BE COMPLETED


DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES (FROM CURRENT MONTH ACTUAL COLUMN)

TOTAL DISBURSEMENTS		$

LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS		$
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)		$

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES		$

EXHIBIT A

Schedule of Cash Receipts and Disbursements


(In Millions)	October 11, 2014 -			November 1, 2014 -			October 11, 2014 -
	October 31, 2014			November 30, 2014			November 30, 2014
Cash, Beginning of Period	$	37.0		$	37.30		$	37.00
Inflows:
US Revenue		0.3			0.5			0.8
Misc Revenue		—			0.6			0.6
JIB Receipts		0.6			—			0.6

Total Inflows	$	0.90		$	1.1		$	2.0
Outflows:
Capital Projects	$	(0.1	)	$	(0.7	)		(0.8	)
Operating Costs		—			(0.1	)		(0.1	)
G&A/Other		(0.4	)		(2.5	)		(2.9	)
Professionals		(0.1	)		—			(0.1	)

Total Outflows	$	(0.60	)	$	(3.30	)	$	(3.90	)
IC Transfers:
Restructuring Costs	$	—		$	—		$	—
US G&A		—			—			—
US Capex		—			—			—

Net Cash Flow	$	0.30		$	(2.20	)	$	(1.90	)

Cash, End of Period	$	37.3		$	35.1		$	35.1

Note: All Cash Receipts and Disbursements are through Endeavour Operating Corp.

In re Endeavour International Corporation, et al.,


Debtor¹	Case No.:	14-12308
MOR-1a	Reporting Period:	11/1/2014 – 11/30/2014

For the Period November 1, 2014 to November 30, 2014

Declaration Regarding the Reconciliation of the Debtor’s Bank Accounts as of November 30, 2014

Catherine L. Stubbs hereby declares under penalty of perjury:

I am the Chief Financial Officer for Endeavour International Corporation, the above-captioned debtors and debtors in possession (collectively, the “Debtors”). I am familiar with the Debtors’ day-to-day operations, business, affairs and books and records.

All statements in this Declaration are based on my personal knowledge, my review of the relevant documents, my discussions with other employees of the Debtors, or my opinion based upon my experience and knowledge of the Debtors’ operations and financial condition. If I were called upon to testify, I could and would testify to each of the facts set forth herein based on such personal knowledge, review of documents or opinion. I am authorized to submit this Declaration on behalf of the Debtors.

To the best of my knowledge, the Debtors’ bank balances as of November 30, 2014 have been reconciled in an accurate and timely manner with exception of the bank balances for the Luxembourg Deposit Account, ending in-0000, which, in the normal course of business, are received two months in arrears. Copies of the bank reconciliations are available for inspection upon request by the Office of the United States Trustee.


In re Endeavour International Corporation, et al.,		Case No. 14-12308
Debtor		Reporting Period: 11/1/2014 -11/30/2014

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

This schedule is to include all retained professional payments from case inception to current month.


Payee	Period Covered	Amount Covered		Payor	Check			Amount Paid				Year-To-Date
Payee	Period Covered	Amount Covered		Payor	Number	Date		Fees		Expenses		Fees		Expenses
Houlihan Lokey Capital, Inc.	10/10/2014 - 10/31/2014	$	100,000.00	Endeavour International Corporation	CHIP REF: 516099**3		10/31/2014	$	100,000.00	$	0	$	100,000.00	$	0
Centerview Partners	11/1/2014 - 11/30/2014	$	176,069.13	Endeavour International Corporation	CHASE REF: 4324LON***0		11/21/2014	$	175,000.00	$	1,069.13	$	176,069.13	$	1,069.13
Kurtzman Carson Consultants	11/1/2014 - 11/30/2014	$	13,968.00	Endeavour International Corporation	CHIP REF: 484138**4		11/10/2014	$	13,968.00	$	0	$	0	$	13,968.00

FORM MOR-1b

(04/07)


In re Endeavour Operating Corporation, et al.		Case No. 14-12308
Debtor		Reporting Period: 11/1/2014 – 11/30/2014

STATEMENT OF OPERATIONS

(Income Statement)

The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.


	Month	Cumulative Filing to Date
	SEE ATTACHED EXHIBIT B
REVENUES
Gross Revenues
Less: Returns and Allowances
Net Revenue	$	$
COST OF GOODS SOLD
Beginning Inventory
Add: Purchases
Add: Cost of Labor
Add: Other Costs (attach schedule)
Less: Ending Inventory
Cost of Goods Sold
Gross Profit
OPERATING EXPENSES
Advertising
Auto and Truck Expense
Bad Debts
Contributions
Employee Benefits Programs
Insider Compensation*
Insurance
Management Fees/Bonuses
Office Expense
Pension & Profit-Sharing Plans
Repairs and Maintenance
Rent and Lease Expense
Salaries/Commissions/Fees
Supplies
Taxes - Payroll
Taxes - Real Estate
Taxes - Other
Travel and Entertainment
Utilities
Other (attach schedule)
Total Operating Expenses Before Depreciation
Depreciation/Depletion/Amortization
Net Profit (Loss) Before Reorganization Items
OTHER INCOME AND EXPENSES
Other Income (attach schedule)
Interest Expense
Other Expense (attach schedule)
Net Profit (Loss) Before Reorganization Items
REORGANIZATION ITEMS
Professional Fees
U.S. Trustee Quarterly Fees
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
Gain (Loss) from Sale of Equipment
Other Reorganization Expenses (attach schedule)
Total Reorganization Expenses
Income Taxes

Net Profit (Loss)	$	$

*	“Insider” is defined in 11 U.S.C. Section 101(31).

EXHIBIT B

Endeavour International Corporation Statement of Operations


	October 11, 2014 -			November 1 2014 -			December 1, 2014 -
	October 31, 2014			November 30, 2014			December 31, 2014		Cumulative
Oil Revenue	$	—		$	—				$	—
Gas Revenues		—			—					—
Liquids Revenues		—			—					—

Revenue	$	—		$	—		$	—	$	—
Operating Expenses	$	—		$	—				$	—
Total DD&A Expense		—			—					—
Goodwill Impairment Loss		—			—					—
General & Administrative Expense		1,430			87,282					88,712

Total Expenses	$	1,430		$	87,282		$	—	$	88,712

Operating Profit (Loss)	$	(1,430	)	$	(87,282	)	$	—	$	(88,712	)
Gain/Loss on Derivative Instruments	$	—		$	—				$	—
Total Interest Expense		—			—					—
Interest Income		(3,752,903	)		(5,540,000	)				(9,292,903	)
Transaction Costs		—			—					—
Total Letter of Credit Fees		—			—					—
Foreign Currency Exchange (Gain) Loss		—			—					—
Litigation Settlements		—			—					—
Net Other (Income) Expense		—			—					—

Other Income (Expense)	$	(3,752,903	)	$	(5,540,000	)	$	—	$	(9,292,903	)

Income (Loss) Before Tax & Preferred Dividends	$	3,751,473		$	5,452,718		$	—	$	9,204,191
Income Tax Expense	$	—		$	—				$	—

Income (Loss) Before Preferred Dividends	$	3,751,473		$	5,452,718		$	—	$	9,204,191
Preferred Stock Dividends	$	—		$	—				$	—
Net Income (Loss)	$	3,751,473		$	5,452,718		$	—	$	9,204,191

Endeavour Energy Luxembourg Sarl Statement of Operations


	October 11, 2014 -			November 1 2014 -			December 1, 2014 -
	October 31, 2014			November 30, 2014			December 31, 2014		Cumulative
Oil Revenue	$	—		$	—				$	—
Gas Revenues		—			—					—
Liquids Revenues		—			—					—

Revenue	$	—		$	—		$	—	$	—
Operating Expenses	$	—		$	—				$	—
Total DD&A Expense		—			—					—
Goodwill Impairment Loss		—			—					—
General & Administrative Expense		50,924			—					50,924

Total Expenses	$	50,924		$	—		$	—	$	50,924

Operating Profit (Loss)	$	(50,924	)	$	—		$	—	$	(50,924	)
Gain/Loss on Derivative Instruments	$	—		$	—				$	—
Total Interest Expense		—			—					—
Interest Income		—			—					—
Transaction Costs		—			—					—
Total Letter of Credit Fees		—			—					—
Foreign Currency Exchange (Gain) Loss		(110	)		(202	)				(311	)
Litigation Settlements		—			—					—
Net Other (Income) Expense		—			—					—

Other Income (Expense)	$	(110	)	$	(202	)	$	—	$	(311	)

Income (Loss) Before Tax & Preferred Dividends	$	(50,814	)	$	202		$	—	$	(50,613	)
Income Tax Expense	$	—		$	—				$	—

Income (Loss) Before Preferred Dividends	$	(50,814	)	$	202		$	—	$	(50,613	)
Preferred Stock Dividends	$	—		$	—				$	—
Net Income (Loss)	$	(50,814	)	$	202		$	—	$	(50,613	)

Endeavour New Ventures, Inc. Statement of Operations

October 11, 2014 -

November 1 2014 -

December 1, 2014 -

October 31, 2014

November 30, 2014

December 31, 2014

Cumulative

Oil Revenue

—

Gas Revenues

—

Liquids Revenues

—

Revenue

—

Operating Expenses

—

Total DD&A Expense

—

Goodwill Impairment Loss

—

General & Administrative Expense

—

Total Expenses

—

Operating Profit (Loss)

—

Gain/Loss on Derivative Instruments

—

Total Interest Expense

—

Interest Income

—

Transaction Costs

—

Total Letter of Credit Fees

—

Foreign Currency Exchange (Gain) Loss

—

Litigation Settlements

—

Net Other (Income) Expense

—

Other Income (Expense)

—

Income (Loss) Before Tax & Preferred Dividends

—

Income Tax Expense

—

Income (Loss) Before Preferred Dividends

—

Preferred Stock Dividends

—

Net Income (Loss)

—

Endeavour Management Company Statement of Operations

October 11, 2014 -

November 1 2014 -

December 1, 2014 -

October 31, 2014

November 30, 2014

December 31, 2014

Cumulative

Oil Revenue

—

Gas Revenues

—

Liquids Revenues

—

Revenue

—

Operating Expenses

—

Total DD&A Expense

—

Goodwill Impairment Loss

—

General & Administrative Expense

—

Total Expenses

—

Operating Profit (Loss)

—

Gain/Loss on Derivative Instruments

—

Total Interest Expense

—

Interest Income

—

Transaction Costs

—

Total Letter of Credit Fees

—

Foreign Currency Exchange (Gain) Loss

—

Litigation Settlements

—

Net Other (Income) Expense

—

Other Income (Expense)

—

Income (Loss) Before Tax & Preferred Dividends

—

Income Tax Expense

—

Income (Loss) Before Preferred Dividends

—

Preferred Stock Dividends

—

Net Income (Loss)

—

Endeavour Colorado Corporation Statement of Operations


	October 11, 2014 -			November 1 2014 -			December 1, 2014 -
	October 31, 2014			November 30, 2014			December 31, 2014		Cumulative
Oil Revenue	$	—		$	—				$	—
Gas Revenues		—			—					—
Liquids Revenues		—			—					—

Revenue	$	—		$	—		$	—	$	—
Operating Expenses	$	17		$	—				$	17
Total DD&A Expense		232			345					577
Goodwill Impairment Loss		—			—					—
General & Administrative Expense		—			—					—

Total Expenses	$	249		$	345		$	—	$	594

Operating Profit (Loss)	$	(249	)	$	(345	)	$	—	$	(594	)
Gain/Loss on Derivative Instruments	$	—		$	—				$	—
Total Interest Expense		—			(20,906	)				(20,906	)
Interest Income		—			—					—
Transaction Costs		—			—					—
Total Letter of Credit Fees		—			—					—
Foreign Currency Exchange (Gain) Loss		—			—					—
Litigation Settlements		—			—					—
Net Other (Income) Expense		—			—					—

Other Income (Expense)	$	—		$	(20,906	)	$	—	$	(20,906	)

Income (Loss) Before Tax & Preferred Dividends	$	(249	)	$	20,561		$	—	$	20,312
Income Tax Expense	$	—		$	—				$	—

Income (Loss) Before Preferred Dividends	$	(249	)	$	20,561		$	—	$	20,312
Preferred Stock Dividends	$	—		$	—				$	—
Net Income (Loss)	$	(249	)	$	20,561		$	—	$	20,312

Endeavour Operating Corporation Statement of Operations


	October 11, 2014 -			November 1 2014 -			December 1, 2014 -
	October 31, 2014			November 30, 2014			December 31, 2014		Cumulative
Oil Revenue	$	(308	)	$	481,252				$	480,944
Gas Revenues		267,948			438,012					705,960
Liquids Revenues		—			—					—

Revenue	$	267,640		$	919,264		$	—	$	1,186,904
Operating Expenses	$	281,826		$	471,302				$	753,128
Total DD&A Expense		76,954			148,293					225,247
Goodwill Impairment Loss		—			—					—
General & Administrative Expense		12,943			45,837					58,781

Total Expenses	$	371,723		$	665,433		$	—	$	1,037,156

Operating Profit (Loss)	$	(104,083	)	$	253,831		$	—	$	149,748
Gain/Loss on Derivative Instruments	$	—		$	—				$	—
Total Interest Expense		3,753,039			5,182,950					8,935,989
Interest Income		(3,387,097	)		(5,000,000	)				(8,387,097	)
Transaction Costs		2,326,801			13,968					2,340,769
Total Letter of Credit Fees		—			—					—
Foreign Currency Exchange (Gain) Loss		152			360					512
Litigation Settlements		—			—					—
Net Other (Income) Expense		(127,363	)		—					(127,363	)

Other Income (Expense)	$	2,565,532		$	197,278		$	—	$	2,762,811

Income (Loss) Before Tax & Preferred Dividends	$	(2,669,615	)	$	56,553		$	—	$	(2,613,062	)
Income Tax Expense	$	—		$	50				$	50

Income (Loss) Before Preferred Dividends	$	(2,669,615	)	$	56,503		$	—	$	(2,613,112	)
Preferred Stock Dividends	$	—		$	—				$	—
Net Income (Loss)	$	(2,669,615	)	$	56,503		$	—	$	(2,613,112	)


In re: Endeavour Operating Corporation, et. al		Case No. 14-12308
Debtor		Reporting Period: 11/1/2014 – 11/30/2014

BALANCE SHEET

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.


ASSETS CURRENT ASSETS	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
Unrestricted Cash and Equivalents		SEE ATTACHED EXHIBIT C
Restricted Cash and Cash Equivalents (see continuation sheet)
Accounts Receivable (Net)
Notes Receivable
Inventories
Prepaid Expenses
Professional Retainers
Other Current Assets (attach schedule)
*TOTAL CURRENT ASSETS*	$		$
PROPERTY AND EQUIPMENT
Real Property and Improvements
Machinery and Equipment
Furniture, Fixtures and Office Equipment
Leasehold Improvements
Vehicles
Less Accumulated Depreciation
*TOTAL PROPERTY & EQUIPMENT*	$		$
OTHER ASSETS
Loans to Insiders*
Other Assets (attach schedule)
*TOTAL OTHER ASSETS*	$		$

TOTAL ASSETS	$		$


LIABILITIES AND OWNER EQUITY LIABILITIES NOT SUBJECT TO COMPROMISE	BOOK VALUE AT END OF CURRENT REPORTING MONTH		BOOK VALUE ON PETITION DATE
Accounts Payable
Taxes Payable (refer to FORM MOR-4)
Wages Payable
Notes Payable
Rent/Leases - Building/Equipment
Secured Debt/Adequate Protection Payments
Professional Fees
Amounts Due to Insiders*
Other Postpetition Liabilities (attach schedule)
*TOTAL POSTPETITION LIABILITIES*	$		$
*LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)*
Secured Debt
Priority Debt
Unsecured Debt
*TOTAL PRE-PETITION LIABILITIES*
*TOTAL LIABILITIES*	$		$
*OWNER EQUITY*
Capital Stock
Additional Paid-In Capital
Partners’ Capital Account
Owner’s Equity Account
Retained Earnings - Pre-Petition
Retained Earnings - Postpetition
Adjustments to Owner Equity (attach schedule)
Postpetition Contributions (Distributions)(Draws)(attach schedule)
NET OWNER EQUITY	$		$

TOTAL LIABILITIES AND OWNERS’ EQUITY	$		$

EXHIBIT C

Endeavour International Corporation Balance Sheet


	October 31, 2014			November 30, 2014			December 31, 2014		January 31, 2014
Cash & Cash Equivalents	$	—		$	—
Restricted Cash - Current		—			—
Accounts Receivables		—			—
Intercompany Receivables		469,404,392			475,419,391
Total Other Current Assets		16,719,198			16,717,707

Current Assets	$	486,123,590		$	492,137,098		$	—	$	—
Property, Plant & Equipment	$	—		$	—
Investments		57,661,973			57,661,973
Goodwill		—			—
Restricted Cash		—			—
Other Assets		—			—
Long-Term Intercompany		554,000,000			554,000,000

Long Term Assets	$	611,661,973		$	611,661,973		$	—	$	—
Total Assets	$	1,097,785,563		$	1,103,799,071		$	—	$	—

Total Accounts Payable	$	—		$	—
Total Accrued Expenses		44,782,107			44,950,450
Current Maturities Of Debt		693,598,349			693,598,349
Current Portion - Production Payment		—			—
Debtor in Possession		—			—
Taxes Payable		—			—
Intercompany Payable		669,430			648,349
Total Other Current Liabilities		—			—

Current Liabilities	$	739,049,885		$	739,197,148		$	—	$	—
Long-Term Debt	$	—		$	—
Deferred Tax Liability		—			—
ARO Liability		—			—
Long Term - Production Payment		—			—
Long Term Intercompany		—			—
Other Long Term Liabilities		—			—

Total Liabilities	$	739,049,885		$	739,197,148		$	—	$	—
Redeemable Preferred Stock	$	17,481,175		$	17,481,175
Preferred Stock	$	20		$	20
Common Stock		53,013			53,013
APIC		560,004,806			560,883,928
Treasury Stock		(586,841	)		(586,841	)
Accumulated Earnings (Deficit)		(218,216,496	)		(213,229,373	)

Stockholders’ Equity	$	341,254,503		$	347,120,748		$	—	$	—
Total Liabilities & Stockholders’ Equity	$	1,097,785,563		$	1,103,799,071		$	—	$	—

Endeavour Energy Luxembourg Sarl Balance Sheet


	October 31, 2014			November 30, 2014			December 31, 2014		January 31, 2014
Cash & Cash Equivalents	$	45,899		$	30,273
Restricted Cash - Current		—			—
Accounts Receivables		—			—
Intercompany Receivables		—			—
Total Other Current Assets		228,730			228,730

Current Assets	$	274,629		$	259,003		$	—	$	—
Property, Plant & Equipment	$	—		$	—
Investments		—			—
Goodwill		—			—
Restricted Cash		—			—
Other Assets		2,708,461			2,708,461
Long-Term Intercompany		78,245,339			78,245,339

Long Term Assets	$	80,953,800		$	80,953,800		$	—	$	—
Total Assets	$	81,228,430		$	81,212,803		$	—	$	—

Total Accounts Payable	$	—		$	—
Total Accrued Expenses		174,471			174,471
Current Maturities Of Debt		82,682,642			82,682,642
Current Portion - Production Payment		—			—
Debtor in Possession		—			—
Taxes Payable		55,007			54,687
Intercompany Payable		3,169,755			3,169,755
Total Other Current Liabilities		—			—

Current Liabilities	$	86,081,875		$	86,081,554		$	—	$	—
Long-Term Debt	$	—		$	—
Deferred Tax Liability		—			—
ARO Liability		—			—
Long Term - Production Payment		—			—
Long Term Intercompany		—			—
Other Long Term Liabilities		—			—

Total Liabilities	$	86,081,875		$	86,081,554		$	—	$	—
Redeemable Preferred Stock	$	—		$	—
Preferred Stock	$	—		$	—
Common Stock		—			—
APIC		37,485			37,485
Treasury Stock		—			—
Accumulated Earnings (Deficit)		(4,890,930	)		(4,906,236	)

Stockholders’ Equity	$	(4,853,445	)	$	(4,868,751	)	$	—	$	—
Total Liabilities & Stockholders’ Equity	$	81,228,430		$	81,212,803		$	—	$	—

Endeavour New Ventures, Inc. Balance Sheet


	October 31, 2014			November 30, 2014			December 31, 2014		January 31, 2014
Cash & Cash Equivalents	$	—		$	—
Restricted Cash - Current		—			—
Accounts Receivables		—			—
Intercompany Receivables		280,153			280,153
Total Other Current Assets		—			—

Current Assets	$	280,153		$	280,153		$	—	$	—
Property, Plant & Equipment	$	—		$	—
Investments		—			—
Goodwill		—			—
Restricted Cash		—			—
Other Assets		—			—
Long-Term Intercompany		—			—

Long Term Assets	$	—		$	—		$	—	$	—
Total Assets	$	280,153		$	280,153		$	—	$	—

Total Accounts Payable	$	—		$	—
Total Accrued Expenses		—			—
Current Maturities Of Debt		—			—
Current Portion - Production Payment		—			—
Debtor in Possession		—			—
Taxes Payable		—			—
Intercompany Payable		—			—
Total Other Current Liabilities		—			—

Current Liabilities	$	—		$	—		$	—	$	—
Long-Term Debt	$	—		$	—
Deferred Tax Liability		—			—
ARO Liability		—			—
Long Term -Production Payment		—			—
Long Term Intercompany		—			—
Other Long Term Liabilities		—			—

Total Liabilities	$	—		$	—		$	—	$	—
Redeemable Preferred Stock	$	—		$	—
Preferred Stock	$	—		$	—
Common Stock		1			1
APIC		3,478,898			3,478,898
Treasury Stock		—			—
Accumulated Earnings (Deficit)		(3,198,746	)		(3,198,746	)

Stockholders’ Equity	$	280,153		$	280,153		$	—	$	—
Total Liabilities & Stockholders’ Equity	$	280,153		$	280,153		$	—	$	—

Endeavour Management Company Balance Sheet


	October 31, 2014			November 30, 2014			December 31, 2014		January 31, 2014
Cash & Cash Equivalents	$	—		$	—
Restricted Cash - Current		—			—
Accounts Receivables		—			—
Intercompany Receivables		648,349			648,349
Total Other Current Assets		—			—

Current Assets	$	648,349		$	648,349		$	—	$	—
Property, Plant & Equipment	$	2,862,882		$	2,862,882
Investments		—			—
Goodwill		—			—
Restricted Cash		—			—
Other Assets		—			—
Long-Term Intercompany		—			—

Long Term Assets	$	2,862,882		$	2,862,882		$	—	$	—
Total Assets	$	3,511,231		$	3,511,231		$	—	$	—

Total Accounts Payable	$	—		$	—
Total Accrued Expenses		—			—
Current Maturities Of Debt		—			—
Current Portion - Production Payment		—			—
Debtor in Possession		—			—
Taxes Payable		—			—
Intercompany Payable		14,354,530			14,354,530
Total Other Current Liabilities		—			—

Current Liabilities	$	14,354,530		$	14,354,530		$	—	$	—
Long-Term Debt	$	—		$	—
Deferred Tax Liability		—			—
ARO Liability		—			—
Long Term - Production Payment		—			—
Long Term Intercompany		—			—
Other Long Term Liabilities		—			—

Total Liabilities	$	14,354,530		$	14,354,530		$	—	$	—
Redeemable Preferred Stock	$	—		$	—
Preferred Stock	$	—		$	—
Common Stock		10			—
APIC		15,597,652			15,597,662
Treasury Stock		—			—
Accumulated Earnings (Deficit)		(26,440,961	)		(26,440,961	)

Stockholders’ Equity	$	(10,843,299	)	$	(10,843,299	)	$	—	$	—
Total Liabilities & Stockholders’ Equity	$	3,511,231		$	3,511,231		$	—	$	—

Endeavour Colorado Company Balance Sheet


	October 31, 2014		November 30, 2014		December 31, 2014		January 31, 2014
Cash & Cash Equivalents	$	—	$	—
Restricted Cash - Current		—		—
Accounts Receivables		982,702		815,021
Intercompany Receivables		—		—
Total Other Current Assets		—		—

Current Assets	$	982,702	$	815,021	$	—	$	—
Property, Plant & Equipment	$	11,307,054	$	11,447,515
Investments		—		—
Goodwill		—		—
Restricted Cash		—		—
Other Assets		—		—
Long-Term Intercompany		—		—

Long Term Assets	$	11,307,054	$	11,447,515	$	—	$	—
Total Assets	$	12,289,756	$	12,262,535	$	—	$	—

Total Accounts Payable	$	1,011,349	$	934,482
Total Accrued Expenses		839,206		—
Current Maturities Of Debt		—		—
Current Portion - Production Payment		—		—
Debtor in Possession		—		—
Taxes Payable		—		—
Intercompany Payable		10,347,742		11,215,688
Total Other Current Liabilities		—		—

Current Liabilities	$	12,198,298	$	12,150,170	$	—	$	—
Long-Term Debt	$	—	$	—
Deferred Tax Liability		—		—
ARO Liability		35,240.79		35,586.74
Long Term - Production Payment		—		—
Long Term Intercompany		—		—
Other Long Term Liabilities		—		—

Total Liabilities	$	12,233,538	$	12,185,757	$	—	$	—
Redeemable Preferred Stock	$	—	$	—
Preferred Stock	$	—	$	—
Common Stock		—		—
APIC		—		—
Treasury Stock		—		—
Accumulated Earnings (Deficit)		56,218		76,779

Stockholders’ Equity	$	56,218	$	76,779	$	—	$	—
Total Liabilities & Stockholders’ Equity	$	12,289,756	$	12,262,535	$	—	$	—

Endeavour Operating Corporation Balance Sheet


	October 31, 2014			November 30, 2014			December 31, 2014		January 31, 2014
Cash & Cash Equivalents	$	37,316,408		$	35,239,032
Restricted Cash - Current		50,176			50,176
Accounts Receivables		2,101,571			2,611,990
Intercompany Receivables		66,690,504			72,558,450
Total Other Current Assets		13,345,465			13,448,658

Current Assets	$	119,504,123		$	123,908,305		$	—	$	—
Property, Plant & Equipment	$	84,751,882		$	85,492,092
Investments		238,153,544			238,153,544
Goodwill		—			—
Restricted Cash		—			—
Other Assets		10,050			10,050
Long-Term Intercompany		500,000,000			500,000,000

Long Term Assets	$	822,915,476		$	823,655,686		$	—	$	—
Total Assets	$	942,419,599		$	947,563,991		$	—	$	—

Total Accounts Payable	$	1,346,554		$	1,520,837
Total Accrued Expenses		1,633,618			1,762,435
Current Maturities Of Debt		—			—
Current Portion - Production Payment		—			—
Debtor in Possession		—			194,814
Taxes Payable		9,053			16,651
Intercompany Payable		568,388,412			572,929,474
Total Other Current Liabilities		1,100,256			1,100,256

Current Liabilities	$	572,477,892		$	577,524,467		$	—	$	—
Long-Term Debt	$	—		$	—
Deferred Tax Liability		—			—
ARO Liability		428,707			434,060
Long Term - Production Payment		—			—
Long Term Intercompany		554,000,000			554,000,000
Other Long Term Liabilities		3,902,468			3,938,429

Total Liabilities	$	1,130,809,067		$	1,135,896,956		$	—	$	—
Redeemable Preferred Stock	$	—		$	—
Preferred Stock	$	—		$	—
Common Stock		1,000			1,000
APIC		57,660,973			57,660,973
Treasury Stock		—			—
Accumulated Earnings (Deficit)		(246,051,441	)		(245,994,938	)

Stockholders’ Equity	$	(188,389,468	)	$	(188,332,965	)	$	—	$	—
Total Liabilities & Stockholders’ Equity	$	942,419,599		$	947,563,991		$	—	$	—


In re: Endeavour Operating Corporation, et al.		Case No. 14-12308
Debtor		Reporting Period: 11/1/14 – 11/30/14

STATUS OF POSTPETITION TAXES

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes.

Attach photocopies of any tax returns filed during the reporting period.


Federal	Beginning Tax Liability		Amount Withheld or Accrued		Amount Paid		Date Paid	Check No. or EFT	Ending Tax Liability
Withholding	$	0	$	0	$	0			$	0
FICA-Employee	$	0	$	0	$	0			$	0
FICA-Employer	$	0	$	0	$	0			$	0
Unemployment	$	0	$	0	$	0			$	0
Income	$	0	$	0	$	0			$	0
Other:	$	0	$	0	$	0			$	0
Total Federal Taxes	$	0	$	0	$	0			$	0
State and Local
Withholding	$	0	$	0	$	0			$	0
Sales	$	0	$	0	$	0			$	0
Excise	$	0	$	0	$	0			$	0
Unemployment	$	0	$	0	$	0			$	0
Real Property	$	0	$	0	$	0			$	0
Personal Property	$	0	$	0	$	0			$	0
Other: Severance Tax	$	0	$	7,598.08	$	0			$	7,598.08
Total State and Local

Total Taxes	$	0	$	7,598.08	$	0			$	7,598.08

NOTE: The Company accrues for severance taxes on a quarterly basis. The average severance taxes incurred based on production is $7,000/month.


In re Endeavour Operating Corporation, et al.		Case No. 14-12308
Debtor		Reporting Period: 11/1/2014 – 11/30/2014

SUMMARY OF UNPAID POSTPETITION DEBTS

See attached aged listing of accounts payable.


Number of Days Past Due
	Current		0-30		31-60	61-90	Over 90	Total
Accounts Payable	$	681,559.79	$	85,604.40				$	767,164.19
Wages Payable	$	2,764.18						$	2,764.18
Taxes Payable
Rent/Leases-Building	$	94,033.72						$	94,033.72
Rent/Leases-Equipment
Secured Debt/Adequate Protection Payments
Professional Fees
Amounts Due to Insiders*
Other:
Other:

Total Postpetition Debts	$	778,357.69	$	85,604.40				$	863,962.09

*	“Insider” is defined in 11 U.S.C. Section 101(31).

Endeavour Operating Corp

Payables Aging Report


	Days Past Due
Vendor	Balance at November 30, 2014		Current		0-30		31-60		61-90
Ace Trucking , LLC	$	467.50		467.50	$	—	$	—	$	—
AT&T Mobility		70.38		70.38		0.00		0.00		0.00
B&A PROPERTIES, LLC		5,080.10		5,080.10		0.00		0.00		0.00
BEA LOGISTICS SERVICES LLC		12,150.57		12,150.57		0.00		0.00		0.00
BLAC-FRAC TANKS, INC.		1,588.21		0.00		1,588.21		0.00		0.00
Bloomberg Finance L.P.		6,396.00		6,396.00		0.00		0.00		0.00
BOLTON CONSTRUCTION, LLC		90.00		90.00		0.00		0.00		0.00
Broadridge ICS, Inc		711.78		711.78		0.00		0.00		0.00
Burleson LLP		29,088.30		29,088.30		0.00		0.00		0.00
Chicago Mercantitle Exchange		150.00		150.00		0.00		0.00		0.00
Connell Resources, Inc		16,618.67		16,618.67		0.00		0.00		0.00
Corporate Care		947.19		947.19		0.00		0.00		0.00
D & P WATER, INC.		796.68		796.68		0.00		0.00		0.00
DALBO, INC		14,292.38		14,292.38		0.00		0.00		0.00
Dennard Lascar Associates LLC		19,500.00		19,500.00		0.00		0.00		0.00
DirecTV		166.82		166.82		0.00		0.00		0.00
DSCHAAKS CONSULTING & TRUCKING, LLC		172,265.23		172,265.23		0.00		0.00		0.00
eFax		251.45		251.45		0.00		0.00		0.00
Elite Town Car Services		160.00		160.00		0.00		0.00		0.00
FedEx		230.34		230.34		0.00		0.00		0.00
Goode Systems & Consulting, Inc		2,124.95		2,124.95		0.00		0.00		0.00
HEROD INDUSTRIES		11,750.00		11,750.00		0.00		0.00		0.00
Houston Chronicle		57.20		57.20		0.00		0.00		0.00
Innovative Geo-Tech Resources		318.75		318.75		0.00		0.00		0.00
Interior Foliage & Design		213.00		213.00		0.00		0.00		0.00
Iron Mountain Records Mgmt		1,093.84		1,093.84		0.00		0.00		0.00
J-W Operating Company		81,341.82		0.00		81,341.82		0.00		0.00
KLEINFELDER		242.00		242.00		0.00		0.00		0.00
Konica Minolta		1,188.34		1,188.34		0.00		0.00		0.00
LDNK LLC HCP		8,135.00		8,135.00		0.00		0.00		0.00
Long View Systems Corporation		14,554.97		14,554.97		0.00		0.00		0.00
MASTER PETROLEUM		3,840.01		3,840.01		0.00		0.00		0.00
Miller Mentzer Walker, P.C.		6,979.91		6,979.91		0.00		0.00		0.00
MLN Service Company, Inc		396.00		396.00		0.00		0.00		0.00
MOODY CONSTRUCTION & SONS, INC.		20,775.00		20,775.00		0.00		0.00		0.00
New Tech Global Ventures, LLC		2,789.68		115.31		2,674.37		0.00		0.00
Newtek Technology Services		71.85		71.85		0.00		0.00		0.00
Oilfield Software Solutions, Ltd		1,200.00		1,200.00		0.00		0.00		0.00
Plant Interscapes, Inc.		227.94		227.94		0.00		0.00		0.00
Precision Graphics Centers		57.37		57.37		0.00		0.00		0.00
Premiere Global Services, Inc		546.53		546.53		0.00		0.00		0.00
ProStar Services		66.49		66.49		0.00		0.00		0.00
QEP ENERGY COMPANY		515.96		515.96		0.00		0.00		0.00
R & T Oilfield Services, Inc.		183,886.47		183,886.47		0.00		0.00		0.00
RAIN FOR RENT		3,087.00		3,087.00		0.00		0.00		0.00
Rhett’s Trucking		37,765.00		37,765.00		0.00		0.00		0.00
Roadrunner Moving & Storage		280.00		280.00		0.00		0.00		0.00
RR Donnelley Receivables, Inc.		10,995.00		10,995.00		0.00		0.00		0.00


Shred-it		149.58		149.58		0.00		0.00		0.00
Standard Parking — Denver Office		1,400.00		1,400.00		0.00		0.00		0.00
Staples		496.68		496.68		0.00		0.00		0.00
Steamboat Energy Consultants		8,222.00		8,222.00		0.00		0.00		0.00
STERLING CRANE LLC		41,178.63		41,178.63		0.00		0.00		0.00
SWEPI, LP		2,294.63		2,294.63		0.00		0.00		0.00
Tejas Office Products Inc		103.33		103.33		0.00		0.00		0.00
Thomson Reuters Accelus		723.58		723.58		0.00		0.00		0.00
Time Warner Telecom		12,741.38		12,741.38		0.00		0.00		0.00
TRI-STATE LAND SURVEYING & CONSULTI		17,775.00		17,775.00		0.00		0.00		0.00
Verizon Wireless		2,784.96		2,784.96		0.00		0.00		0.00
Wagner Rents, Inc		3,772.74		3,772.74		0.00		0.00		0.00

Total Accounts Payable		767,164.19		681,559.79		85,604.40		0.00		0.00


	Days Past Due
Vendor	Balance at November 30, 2014		Current		0-30		31-60		61-90
1125 Pearlmark Broadreach, L.L.C.		20,799.17		20,799.17		0.00		0.00		0.00
BG Holdco, LLC		73,234.55		73,234.55		0.00		0.00		0.00

Total Rent/Leases-Building		94,033.72		94,033.72		0.00		0.00		0.00


	Days Past Due
Vendor	Balance at November 30, 2014		Current		0-30		31-60		61-90
ADP TotalSource		2,764.18		2,764.18		0.00		0.00		0.00

Total Wages Payable		2,764.18		2,764.18		0.00		0.00		0.00

Grand Total		863,962.09		778,357.69		85,604.40		0.00		0.00


In re: Endeavour Operating Corporation, et al		Case No. 14-12308
Debtor		Reporting Period: 11/1/2014 – 11/30/2014

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING


Accounts Receivable Reconciliation	Amount
Total Accounts Receivable at the beginning of the reporting period				$	3,084,273
+ Amounts billed during the period	$	874,570
- Amounts collected during the period	($	531,472	)

Total Accounts Receivable at the end of the reporting period				$	3,427,371


Accounts Receivable Aging	Amount
0 - 30 days old				$	1,410,382
31 - 60 days old				$	470,666
61 - 90 days old				$	769,805
91+ days old				$	776,518

Total Accounts Receivable				$	3,427,371

Amount considered uncollectible (Bad Debt)
Accounts Receivable (Net)				$	3,427,371

DEBTOR QUESTIONNAIRE


Must be completed each month		Yes		No
1.	Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.				X
2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.				X
3.	Have all postpetition tax returns been timely filed? If no, provide an explanation below.		X
4.	Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.		X
5.	Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.				X

Dated: December 19, 2014

Respectfully submitted,

/s/ Catherine L. Stubbs

Catherine L. Stubbs

Senior Vice President & CFO