ENDEAVOUR INTERNATIONAL CORP - FORM 8-K - EX-99.1

ENDEAVOUR INTERNATIONAL CORP - FORM 8-K - EX-99.1 - January 27, 2015

Attached files

Attached files

ENDEAVOUR INTERNATIONAL CORP Reports

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8-K - 8-K - ENDEAVOUR INTERNATIONAL CORP	d860566d8k.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: 12/01/14 – 12/31/14

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	NO	NO
Bank Reconciliation (or copies of debtor’s bank reconciliations)	MOR-1a	NO	YES	YES
Schedule of Professional Fees Paid	MOR-1b	YES	NO	NO
Copies of bank statements
Cash disbursements journals
Statement of Operations	MOR-2	YES	NO	NO
Balance Sheet	MOR-3	YES	NO	NO
Status of Post-petition Taxes	MOR-4	YES	NO	NO
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	NO	NO
Listing of aged accounts payable	MOR-4	YES	NO	NO
Accounts Receivable Reconciliation and Aging	MOR-5	YES	NO	NO
Debtor Questionnaire	MOR-5	YES	NO	NO

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				1/26/15
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.		Case No. 14-12308
Debtor		Reporting Period: 12/01/14 – 12/31/14

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 10, 2014 - October 31, 2014			November 1, 2014 - November 30, 2014			December 1, 2014 - December 31, 2014			Cumulative
Cash, Beginning of Period	$	37.0		$	37.3		$	35.1		$	37.0
Inflows:
US Revenue	$	0.3		$	0.5		$	1.0		$	1.8
Misc Revenue		—			0.6			—			0.6
JIB Receipts		0.6			—			—			0.6

Total Inflows	$	0.9		$	1.1		$	1.0		$	3.0
Outflows:
Capital Projects	$	(0.1	)	$	(0.7	)	$	(1.9	)	$	(2.7	)
Operating Costs		—			(0.1	)		—			(0.1	)
G&A/Other		(0.4	)		(2.5	)		(1.5	)		(4.4	)
Professionals		(0.1	)		—			(4.1	)		(4.2	)

Total Outflows	$	(0.6	)	$	(3.3	)	$	(7.5	)	$	(11.4	)
IC Transfers:
Restructuring Costs	$	—		$	—		$	—		$	—
US G&A		—			—			3.3			3.3
US Capex		—			—			—			—

Net Cash Flow	$	0.3		$	(2.2	)	$	(3.1	)	$	(5.0	)

Cash, End of Period	$	37.3		$	35.1		$	32.0		$	32.0

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:	12/01/2014 – 12/31/2014

For the Period December 1, 2014 to December 31, 2014

Declaration Regarding the Reconciliation of the Debtor’s Bank Accounts as of December 31, 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 December 31, 2014 have been reconciled in an accurate and timely manner. 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: 10/10/2014 – 12/31/2014

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

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


					Check		Amount Paid				Year-To-Date
Payee	Period Covered	Amount Covered		Payor	Number	Date	Fees		Expenses		Fees		Expenses
Kurtzman Carson Consultants	11/1/2014 - 11/30/2014	$	13,968.00	Endeavour Operating Corporation	CHIP REF 484138**4	11/10//2014			$	13,968.00			$	13,968.00
Weil, Gotshal & Manges LLP	10/10/2014 - 10/31/2014	$	659,215.1	Endeavour Operating Corporation	JPM REF: 13957**5JO	12/31/2014	$	646,025.40	$	13,189.76	$	646,025.40	$	13,189.76
Blackstone Advisory Partners LP	10/10/2014 - 10/31/2014	$	95,414.73	Endeavour Operating Corporation	JPM REF: 13958**5JO	12/31/2014	$	94,838.71	$	576.02	$	94,838.71	$	576.02

FORM MOR-1b

(04/07)


In re Endeavour Operating Corporation, et al.		Case No. 14-12308
Debtor		Reporting Period: 12/01/2014 – 12/31/2014

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.


REVENUES	Month		Cumulative Filing to Date
Gross Revenues		SEE ATTACHED EXHIBIT B
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 10, 2014 - October 31, 2014			November 1 2014 - November 30, 2014			December 1, 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			7,564			96,277

Total Expenses	$	1,430		$	87,282		$	7,564		$	96,277

Operating Profit (Loss)	$	(1,430	)	$	(87,282	)	$	(7,564	)	$	(96,277	)

Gain/Loss on Derivative Instruments	$	—		$	—		$	—		$	—
Total Interest Expense		—			—			—			—
Interest Income		(3,752,903	)		(5,540,000	)		(5,540,000	)		(14,832,903	)
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	)	$	(5,540,000	)	$	(14,832,903	)

Income (Loss) Before Tax & Preferred Dividends	$	3,751,473		$	5,452,718		$	5,532,436		$	14,736,627

Income Tax Expense	$	—		$	—		$	—		$	—

Income (Loss) Before Preferred Dividends	$	3,751,473		$	5,452,718		$	5,532,436		$	14,736,627

Preferred Stock Dividends	$	—		$	—		$	—		$	—

Net Income (Loss)	$	3,751,473		$	5,452,718		$	5,532,436		$	14,736,627

Endeavour Energy Luxembourg Sarl Statement of Operations


	October 10, 2014 - October 31, 2014			November 1 2014 - November 30, 2014			December 1, 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			—			491			51,415

Total Expenses	$	50,924		$	—		$	491		$	51,415
Operating Profit (Loss)	$	(50,924	)	$	—		$	(491	)	$	(51,415	)


Gain/Loss on Derivative Instruments	$	—		$	—		$	—		$	—
Total Interest Expense		—			—			—			—
Interest Income		—			—			—			—
Transaction Costs		—			—			—			—
Total Letter of Credit Fees		—			—			—			—
Foreign Currency Exchange (Gain) Loss		(110	)		(202	)		(1,544	)		(1,855	)
Litigation Settlements		—			—			—			—
Net Other (Income) Expense		—			—			102,648			102,648

Other (Income) Expense	$	(110	)	$	(202	)	$	101,104		$	100,793

Income (Loss) Before Tax & Preferred Dividends	$	(50,814	)	$	202		$	(101,595	)	$	(152,207	)

Income Tax Expense	$	—		$	—					$	—

Income (Loss) Before Preferred Dividends	$	(50,814	)	$	202		$	(101,595	)	$	(152,207	)

Preferred Stock Dividends	$	—		$	—		$	—		$	—

Net Income (Loss)	$	(50,814	)	$	202		$	(101,595	)	$	(152,207	)

Endeavour New Ventures, Inc. Statement of Operations

October 10, 2014 -
October 31, 2014

November 1 2014 -
November 30, 2014

December 1, 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 10, 2014 -
October 31, 2014

November 1 2014 -
November 30, 2014

December 1, 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 10, 2014 - October 31, 2014			November 1 2014 - November 30, 2014			December 1, 2014 - December 31, 2014			Cumulative
Oil Revenue	$	—		$	—		$	496,214		$	496,214
Gas Revenues		—			—			—			—
Liquids Revenues		—			—			—			—

Revenue	$	—		$	—		$	496,214		$	496,214

Operating Expenses	$	17		$	—		$	21,189		$	21,206
Total DD&A Expense		232			345			42,492			43,069
Goodwill Impairment Loss		—			—			—			—
General & Administrative Expense		—			—			—			—

Total Expenses	$	249		$	345		$	63,680		$	64,274

Operating Profit (Loss)	$	(249	)	$	(345	)	$	432,534		$	431,940

Gain/Loss on Derivative Instruments	$	—		$	—		$	—		$	—
Total Interest Expense		—			(20,906	)		(10,453	)		(31,359	)
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	)	$	(10,453	)	$	(31,359	)

Income (Loss) Before Tax & Preferred Dividends	$	(249	)	$	20,561		$	442,987		$	463,299

Income Tax Expense	$	—		$	—		$	—		$	—

Income (Loss) Before Preferred Dividends	$	(249	)	$	20,561		$	442,987		$	463,299

Preferred Stock Dividends	$	—		$	—		$	—		$	—

Net Income (Loss)	$	(249	)	$	20,561		$	442,987		$	463,299

Endeavour Operating Corporation Statement of Operations


	October 10, 2014 - October 31, 2014			November 1 2014 - November 30, 2014			December 1, 2014 - December 31, 2014			Cumulative
Oil Revenue	$	(308	)	$	481,252		$	(489,963	)	$	(9,019	)
Gas Revenues		267,948			438,012			354,851			1,060,810
Liquids Revenues		—			—			—			—

Revenue	$	267,640		$	919,264		$	(135,113	)	$	1,051,791

Operating Expenses	$	281,826		$	471,302		$	(59,008	)	$	694,120
Total DD&A Expense		76,954			148,293			63,284			288,532
Goodwill Impairment Loss		—			—			—			—
General & Administrative Expense		12,943			45,837			(139,734	)		(80,953	)

Total Expenses	$	371,723		$	665,433		$	(135,458	)	$	901,698

Operating Profit (Loss)	$	(104,083	)	$	253,831		$	345		$	150,094

Gain/Loss on Derivative Instruments	$	—		$	—		$	—		$	—
Total Interest Expense		3,753,039			5,182,950			5,361,592			14,297,580
Interest Income		(3,387,097	)		(5,000,000	)		(5,000,000	)		(13,387,097	)
Transaction Costs		2,326,801			13,968			—			2,340,769
Total Letter of Credit Fees		—			—			—			—
Foreign Currency Exchange (Gain) Loss		152			360			70			582
Litigation Settlements		—			—			—			—
Net Other (Income) Expense		(127,363	)		—			4,108,574			3,981,211

Other (Income) Expense	$	2,565,532		$	197,278		$	4,470,236		$	7,233,046

Income (Loss) Before Tax & Preferred Dividends	$	(2,669,615	)	$	56,553		$	(4,469,890	)	$	(7,082,953	)

Income Tax Expense	$	—		$	50		$	—		$	50

Income (Loss) Before Preferred Dividends	$	(2,669,615	)	$	56,503		$	(4,469,890	)	$	(7,083,003	)

Preferred Stock Dividends	$	—		$	—		$	—		$	—

Net Income (Loss)	$	(2,669,615	)	$	56,503		$	(4,469,890	)	$	(7,083,003	)


In re: Endeavour Operating Corporation, et. al		Case No. 14-12308
Debtor		Reporting Period: 12/1/2014 – 12/31/2014

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	BOOK VALUE AT END OF		BOOK VALUE ON
CURRENT ASSETS	CURRENT REPORTING MONTH		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	BOOK VALUE AT END OF		BOOK VALUE ON
LIABILITIES NOT SUBJECT TO COMPROMISE	CURRENT REPORTING MONTH		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


	Petition Date October 10, 2014			October 31, 2014			November 30, 2014			December 31, 2014
Cash & Cash Equivalents	$	—		$	—		$	—		$	—
Restricted Cash - Current		—			—			—			—
Accounts Receivables		—			—			—			—
Intercompany Receivables		463,221,370			469,404,392			475,419,391			474,949,469
Total Other Current Assets		16,871,752			16,719,198			16,717,707			16,717,707

Current Assets	$	480,093,122		$	486,123,590		$	492,137,098		$	491,667,176

Property, Plant & Equipment	$	—		$	—		$	—		$	—
Investments		57,661,973			57,661,973			57,661,973			57,661,973
Goodwill		—			—			—			—
Restricted Cash		—			—			—			—
Other Assets		—			—			—			—
Long-Term Intercompany		554,000,000			554,000,000			554,000,000			554,000,000

Long Term Assets	$	611,661,973		$	611,661,973		$	611,661,973		$	611,661,973

Total Assets	$	1,091,755,095		$	1,097,785,563		$	1,103,799,071		$	1,103,329,149


Total Accounts Payable	$	—		$	—		$	—		$	—
Total Accrued Expenses		42,710,167			44,782,107			44,950,450			45,141,115
Current Maturities Of Debt		693,488,257			693,598,349			693,598,349			693,598,349
Current Portion - Production Payment		—			—			—			—
Debtor in Possession		—			—			—			—
Taxes Payable		—			—			—			—
Intercompany Payable		709,209			669,430			648,349			1,251,106
Total Other Current Liabilities		—			—			—			—

Current Liabilities	$	736,907,633		$	739,049,885		$	739,197,148		$	739,990,570

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

Total Liabilities	$	736,907,633		$	739,049,885		$	739,197,148		$	739,990,570

Redeemable Preferred Stock	$	17,481,175		$	17,481,175		$	17,481,175		$	17,481,175

Preferred Stock	$	20		$	20		$	20		$	20
Common Stock		53,016			53,013			53,013			52,895
APIC		560,004,803			560,004,806			560,883,928			554,106,767
Treasury Stock		(586,841	)		(586,841	)		(586,841	)		(586,841	)
Accumulated Earnings (Deficit)		(222,104,712	)		(218,216,496	)		(213,229,373	)		(207,715,437	)

Stockholders’ Equity	$	337,366,286		$	341,254,503		$	347,120,748		$	345,857,404

Total Liabilities & Stockholders’ Equity	$	1,091,755,093		$	1,097,785,563		$	1,103,799,071		$	1,103,329,149

Endeavour Energy Luxembourg Sarl Balance Sheet


	Petition Date October 10, 2014			October 31, 2014			November 30, 2014			December 31, 2014
Cash & Cash Equivalents	$	46,203		$	45,899		$	30,273		$	11,303
Restricted Cash - Current		—			—			—			—
Accounts Receivables		—			—			—			—
Intercompany Receivables		—			—			—			—
Total Other Current Assets		233,073			228,730			228,730			228,730

Current Assets	$	279,276		$	274,629		$	259,003		$	240,034

Property, Plant & Equipment	$	—		$	—		$	—		$	—
Investments		—			—			—			—
Goodwill		—			—			—			—
Restricted Cash		—			—			—			—
Other Assets		2,657,667			2,708,461			2,708,461			(0	)
Long-Term Intercompany		78,245,339			78,245,339			78,245,339			78,245,339

Long Term Assets	$	80,903,006		$	80,953,800		$	80,953,800		$	78,245,339

Total Assets	$	81,182,282		$	81,228,430		$	81,212,803		$	78,485,373


Total Accounts Payable	$	—		$	—		$	—		$	—
Total Accrued Expenses		—			174,471			174,471			174,471
Current Maturities Of Debt		82,662,396			82,682,642			82,682,642			79,974,180
Current Portion - Production Payment		—			—			—			—
Debtor in Possession		—			—			—			—
Taxes Payable		55,473			55,007			54,687			53,132
Intercompany Payable		3,094,582			3,169,755			3,169,755			3,253,935
Total Other Current Liabilities		—			—			—			—

Current Liabilities	$	85,812,451		$	86,081,875		$	86,081,554		$	83,455,718

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

Total Liabilities	$	85,812,451		$	86,081,875		$	86,081,554		$	83,455,718

Redeemable Preferred Stock	$	—		$	—		$	—		$	—

Preferred Stock	$	—		$	—		$	—		$	—
Common Stock		—			—			—			—
APIC		37,485			37,485			37,485			37,485
Treasury Stock		—			—			—			—
Accumulated Earnings (Deficit)		(4,667,654	)		(4,890,930	)		(4,906,236	)		(5,007,831	)

Stockholders’ Equity	$	(4,630,169	)	$	(4,853,445	)	$	(4,868,751	)	$	(4,970,346	)

Total Liabilities & Stockholders’ Equity	$	81,182,282		$	81,228,430		$	81,212,803		$	78,485,373

Endeavour New Ventures, Inc. Balance Sheet


	Petition Date October 10, 2014			October 31, 2014			November 30, 2014			December 31, 2014
Cash & Cash Equivalents	$	—		$	—		$	—		$	—
Restricted Cash - Current		—			—			—			—
Accounts Receivables		—			—			—			—
Intercompany Receivables		280,153			280,153			280,153			280,153
Total Other Current Assets		—			—			—			—

Current Assets	$	280,153		$	280,153		$	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		$	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			1			1
APIC		3,478,898			3,478,898			3,478,898			3,478,898
Treasury Stock		—			—			—			—
Accumulated Earnings (Deficit)		(3,198,746	)		(3,198,746	)		(3,198,746	)		(3,198,746	)

Stockholders’ Equity	$	280,153		$	280,153		$	280,153		$	280,153

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

Endeavour Management Company Balance Sheet


	Petition Date October 10, 2014			October 31, 2014			November 30, 2014			December 31, 2014
Cash & Cash Equivalents	$	—		$	—		$	—		$	—
Restricted Cash - Current		—			—			—			—
Accounts Receivables		—			—			—			—
Intercompany Receivables		648,349			648,349			648,349			648,349
Total Other Current Assets		—			—			—			—

Current Assets	$	648,349		$	648,349		$	648,349		$	648,349

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

Long Term Assets	$	2,862,882		$	2,862,882		$	2,862,882		$	2,862,882

Total Assets	$	3,511,231		$	3,511,231		$	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			14,354,530			14,354,530
Total Other Current Liabilities		—			—			—			—

Current Liabilities	$	14,354,530		$	14,354,530		$	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		$	14,354,530		$	14,354,530

Redeemable Preferred Stock	$	—		$	—		$	—		$	—

Preferred Stock	$	—		$	—		$	—		$	—
Common Stock		10			10			10			10
APIC		15,597,652			15,597,652			15,597,652			15,597,652
Treasury Stock		—			—			—			—
Accumulated Earnings (Deficit)		(26,440,961	)		(26,440,961	)		(26,440,961	)		(26,440,961	)

Stockholders’ Equity	$	(10,843,299	)	$	(10,843,299	)	$	(10,843,299	)	$	(10,843,299	)

Total Liabilities & Stockholders’ Equity	$	3,511,231		$	3,511,231		$	3,511,231		$	3,511,231

Endeavour Colorado Company Balance Sheet


	Petition Date October 10, 2014		October 31, 2014		November 30, 2014		December 31, 2014
Cash & Cash Equivalents	$	—	$	—	$	—	$	—
Restricted Cash - Current		—		—		—		—
Accounts Receivables		860,242		982,702		815,021		—
Intercompany Receivables		—		—		—		—
Total Other Current Assets		—		—		—		564,805

Current Assets	$	860,242	$	982,702	$	815,021	$	564,805

Property, Plant & Equipment	$	10,523,683	$	11,307,054	$	11,447,515	$	12,361,204
Investments		—		—		—		—
Goodwill		—		—		—		—
Restricted Cash		—		—		—		—
Other Assets		—		—		—		—
Long-Term Intercompany		—		—		—		—

Long Term Assets	$	10,523,683	$	11,307,054	$	11,447,515	$	12,361,204

Total Assets	$	11,383,925	$	12,289,756	$	12,262,535	$	12,926,009


Total Accounts Payable	$	1,011,349	$	1,011,349	$	934,482	$	853,362
Total Accrued Expenses		—		839,206		—		—
Current Maturities Of Debt		—		—		—		—
Current Portion - Production Payment		—		—		—		—
Debtor in Possession		—		—		—		—
Taxes Payable		—		—		—		—
Intercompany Payable		10,281,092		10,347,742		11,215,688		11,516,945
Total Other Current Liabilities		—		—		—		—

Current Liabilities	$	11,292,441	$	12,198,298	$	12,150,170	$	12,370,307

Long-Term Debt	$	—	$	—	$	—	$	—
Deferred Tax Liability		—		—		—		—
ARO Liability		34,898.21		35,240.79		35,586.74		35,936.08
Long Term - Production Payment		—		—		—		—
Long Term Intercompany		—		—		—		—
Other Long Term Liabilities		—		—		—		—

Total Liabilities	$	11,327,340	$	12,233,538	$	12,185,757	$	12,406,243

Redeemable Preferred Stock	$	—	$	—	$	—	$	—

Preferred Stock	$	—	$	—	$	—	$	—
Common Stock		—		—		—		—
APIC		—		—		—		—
Treasury Stock		—		—		—		—
Accumulated Earnings (Deficit)		56,585		56,218		76,779		519,766

Stockholders’ Equity	$	56,585	$	56,218	$	76,779	$	519,766

Total Liabilities & Stockholders’ Equity	$	11,383,925	$	12,289,756	$	12,262,535	$	12,926,009


Note:		Endeavour notes the large decrease in the accounts receivable balance from November to December is a result of a reclass of the balance from Endeavour Colorado Corporation to Endeavour Operating Corporation as Endeavour Operating Coporation is the operator of the Colorado property even though the assets are owned by Endeavour Colorado Corporation.

Endeavour Operating Corporation Balance Sheet


	Petition Date October 10, 2014			October 31, 2014			November 30, 2014			December 31, 2014
Cash & Cash Equivalents	$	41,410,539		$	37,316,408		$	35,239,032		$	32,055,245
Restricted Cash - Current		50,176			50,176			50,176			50,176
Accounts Receivables		2,126,960			2,101,571			2,611,990			1,906,440
Intercompany Receivables		61,615,971			66,690,504			72,558,450			78,629,584
Total Other Current Assets		10,369,454			13,345,465			13,448,658			13,273,931

Current Assets	$	115,573,099		$	119,504,123		$	123,908,305		$	125,915,375

Property, Plant & Equipment	$	84,304,737		$	84,751,882		$	85,492,092		$	87,579,025
Investments		238,153,544			238,153,544			238,153,544			238,153,544
Goodwill		—			—			—			—
Restricted Cash		—			—			—			—
Other Assets		12,350			10,050			10,050			10,050
Long-Term Intercompany		500,000,000			500,000,000			500,000,000			500,000,000

Long Term Assets	$	822,470,631		$	822,915,476		$	823,655,686		$	825,742,619

Total Assets	$	938,043,730		$	942,419,599		$	947,563,991		$	951,657,994


Total Accounts Payable	$	575,367		$	1,346,554		$	1,520,837		$	2,956,529
Total Accrued Expenses		1,504,800			1,633,618			1,762,435			1,598,322
Current Maturities Of Debt		—			—			—			—
Current Portion - Production Payment		—			—			—			—
Debtor in Possession		—			—			194,814			4,651,289
Taxes Payable		8,824			9,053			16,651			(18,501	)
Intercompany Payable		561,781,032			568,388,412			572,929,474			580,258,274
Total Other Current Liabilities		1,100,256			1,100,256			1,100,256			100,256

Current Liabilities	$	564,970,279		$	572,477,892		$	577,524,467		$	589,546,170

Long-Term Debt	$	—		$	—		$	—		$	—
Deferred Tax Liability		—			—			—			—
ARO Liability		426,278			428,707			434,060			440,290
Long Term - Production Payment		—			—			—			—
Long Term Intercompany		554,000,000			554,000,000			554,000,000			554,000,000
Other Long Term Liabilities		3,866,507			3,902,468			3,938,429			474,390

Total Liabilities	$	1,123,263,064		$	1,130,809,067		$	1,135,896,956		$	1,144,460,850

Redeemable Preferred Stock	$	—		$	—		$	—		$	—

Preferred Stock	$	—		$	—		$	—		$	—
Common Stock		1,000			1,000			1,000			1,000
APIC		57,660,973			57,660,973			57,660,973			57,660,973
Treasury Stock		—			—			—			—
Accumulated Earnings (Deficit)		(242,881,307	)		(246,051,441	)		(245,994,938	)		(250,464,828	)

Stockholders’ Equity	$	(185,219,334	)	$	(188,389,468	)	$	(188,332,965	)	$	(192,802,856	)

Total Liabilities & Stockholders’ Equity	$	938,043,730		$	942,419,599		$	947,563,991		$	951,657,994


In re: Endeavour Operating Corporation, et al.		Case No. 14-12308
Debtor		Reporting Period: 12/1/14 – 12/31/14

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	$	7,598.08	$	6,740.78	$	7,087.32		12/8/2014		0210***420	($	637.85	)
					$	7,899.39		12/23/2014		0210***509

Total State and Local

Total Taxes	$	7,598.08	$	6,740.78	$	14,976.71					($	637.85	)

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: 12/1/2014 – 12/31/2014

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	$	386,099.93	$	75,039.87	$	143,572.43	$	5,295.76		$	610,007.93
Wages Payable	$	4,681.89								$	4,681.89
Taxes Payable
Rent/Leases-Building	$	92,528.08								$	92,528.08
Rent/Leases-Equipment
Secured Debt/Adequate Protection Payments
Professional Fees	$	95,681,72	$	669.50						$	669.50
Amounts Due to Insiders*
Other:
Other:

Total Postpetition Debts	$	578,322.04	$	75,709.37	$	143,572.43	$	5,295.76		$	802,899.57

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

Endeavour Operating

Payables Aging Report


	Days Past Due
Vendor	Balance at December 31, 2014			Current			0-30		31-60		61-90
Plant Interscapes, Inc.	$	227.94		$	227.94		$	—	$	—	$	—
FedEx		65.18			65.18			—		—		—
AT&T Long Distance		103.36			103.36			—		—		—
William L. Transier		2,086.38			2,086.38			—		—		—
Verizon Wireless		3,347.07			3,347.07			—		—		—
Iron Mountain Records Management		889.94			890.00			—		—		—
Premiere Global Services, Inc		582.62			582.62			—		—		—
Goode Systems & Consulting, Inc		2,019.86			2,019.86			—		—		—
Time Warner Telecom		12,735.71			12,735.71			—		—		—
Shred-it		74.45			74.45			—		—		—
JPMorgan Chase Bank NA		(4,915.03	)		(4,915.03	)		—		—		—
Precision Graphics Centers		126.98			126.98			—		—		—
Alonti		135.69			135.69			—		—		—
Interior Foliage & Design		213.00			213.00			—		—		—
Long View Systems Corporation (USA)		715.00			715.00			—		—		—
Red Dog Systems Inc		104.00			104.00			—		—		—
Julie Ferro		136.76			136.76			—		—		—
Dean Rabenaldt		447.00			447.00			—		—		—
ProStar Services		264.40			165.31			99.09		—		—
DirecTV		328.80			161.98			166.82		—		—
Staples		267.73			267.73			—		—		—
Konica Minolta Business Solutions USA Inc.		873.48			873.48			—		—		—
eFax Corporate c/o j2 Global Inc.		198.25			149.90			48.35		—		—
Konica Minolta		2,431.57			2,431.57			—		—		—
The NASDAQ OMX Group, Inc.		23,097.59			23,097.59			—		—		—
PSI - Digital Imaging Solutions		100.00			100.00			—		—		—
Thomson Reuters (GRC) Inc.		1,638.98			1,638.98			—		—		—
B&A PROPERTIES, LLC		6,418.32			6,418.32			—		—		—
BEA LOGISTICS SERVICES LLC		66,728.37			31,087.36			35,641.01		—		—
COMSTOCK OIL & GAS, LP		5,335.07			—			—		—		5,335.07
DALBO, INC		9,037.95			9,037.95			—		—		—
DSCHAAKS CONSULTING & TRUCKING, LLC		22,543.52			3,619.25			18,924.27		—		—
EP ENERGY E&P COMPANY, LP		(33.50	)		—			—		—		(33.50	)
FOSSIL OPERATING INC		(5.81	)		—			—		—		(5.81	)
J-W Operating Company		29,357.85			29,357.85			—		—		—
LDNK LLC HCP		3,210.00			—			3,210.00		—		—
MASTER PETROLEUM		207.42			207.42			—		—		—
Paragon Automation		46,501.91			46,501.91			—		—		—
R & T Oilfield Services, Inc.		19,160.00			19,160.00			—		—		—
RAIN FOR RENT		1,756.66			1,756.66			—		—		—
ROCKY MOUNTAIN PERMITTING, LLC		1,061.59			—			1,061.59		—		—
Rogue Pressure Services Ltd.		183,069.00			183,069.00			—		—		—
SAMSON EXPLORATION, LLC		143,572.43			—			—		143,572.43		—
SOUND & CELLULAR, INC.		4,630.50			4,630.50			—		—		—
Special Core Analysis Laboratories		12,116.00			—			12,116.00		—		—
SWEPI, LP		2,470.20			2,470.20			—				—
Wagner Rents, Inc		3,772.74			—			3,772.74		—		—
Wyoming Analytical Laboratories, In		801.00			801.00			—		—		—

Total Accounts Payable	$	610,007.93		$	386,099.93		$	75,039.87	$	143,572.43	$	5,295.76


	Days Past Due
Vendor	Balance at December 31, 2014			Current			0-30		31-60		61-90
ADP TotalSource	$	(878.11	)	$	(878.11	)	$	—	$	—
G.M. Murata		5,560.00			5,560.00			—		—

Total Wages Payable	$	4,681.89		$	4,681.89		$	—	$	—	$	—


	Days Past Due
Vendor	Balance at December 31, 2014			Current			0-30		31-60		61-90
BG Holdco, LLC	$	71,078.87		$	71,079.00		$	—	$	—
1125 Pearlmark Broadreach, L.L.C.		21,449.16			21,449.00			—		—

Total Rent Payable	$	92,528.03		$	92,528.00		$	—	$	—	$	—


	Days Past Due
Vendor	Balance at December 31, 2014			Current			0-30		31-60		61-90
BDO, LLP		11,222.00			11,222.00			—		—		—
Burleson LLP		83,256.25			83,256.25			—		—		—
Greenberg Traurig, LLP		1,203.47			533.97			669.50		—		—

Total Professional Fees	$	95,681.72		$	95,012.22		$	669.50	$	—	$	—



Grand Total	$	802,899.57		$	578,322.04		$	75,709.37	$	143,572.43	$	5,295.76


In re: Endeavour Operating Corporation, et al		Case No. 14-12308
Debtor		Reporting Period: 12/1/2014 – 12/31/2014

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING


Accounts Receivable Reconciliation	Amount
Total Accounts Receivable at the beginning of the reporting period				$	3,427,371.11

+ Amounts billed during the period	($	1,478,795.5	)
- Amounts collected during the period	$	42,136.00

Total Accounts Receivable at the end of the reporting period				$	1,906,439.61


Accounts Receivable Aging	Amount
0 - 30 days old				$	1,168,630.89
31 - 60 days old				$	58,836.09
61 - 90 days old				$	467,971.39
91+ days old				$	211,001.24

Total Accounts Receivable				$	1,906,439.61

Amount considered uncollectible (Bad Debt)
Accounts Receivable (Net)				$	1,906,439.61

Note: The negative amount billed for the period is related to Oil and Gas accrual adjustments.

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: January 26, 2015

Respectfully submitted,

/s/ Catherine L. Stubbs

Catherine L. Stubbs

Senior Vice President & CFO