HOUSTON, November 5 /PRNewswire/ --

Endeavour International Corporation (Amex: END) today reported third quarter 2007 revenues of US$47.2 million as compared to US$31.6 million during the second quarter of 2007. Earnings before interest, taxes, depreciation and amortization (EBITDA) were up 64 percent sequentially to US$33.9 million in the third quarter of 2007 from US$20.7 million in the second quarter. Discretionary cash flow was US$27.2 million in the third quarter compared to US$17.8 million last quarter.

Financial results for the first nine months of 2007 reflected revenues of US$121.6 million as compared to US$22.8 million for the same period of 2006. EBITDA increased from a negative US$1.1 million in the nine months in 2006 to US$92.3 million in the nine months of 2007. Discretionary cash flow was US$79.4 million in the first nine months as compared to US$1.3 million for the same period in 2006.

"In the third quarter, our assets continued to generate strong cash flow from production of 9,700 barrels of oil equivalent per day," said William L. Transier, chairman, chief executive officer and president. "During the first three quarters, we have decreased our debt by US$40 million while spending US$63 million on the development of our producing assets and exploration projects. Importantly, our executive team is completely in place with the addition of two highly experienced professionals during the quarter. We now have the team, the base of operations and the opportunity to grow our company to the next level."

On a GAAP basis, the company reported a net loss to common stockholders for the 2007 third quarter of US$11.7 million or US$0.09 per diluted share as compared to income of US$15.2 million or US$0.17 per diluted share for the same quarter in 2006. Net loss for the third quarter 2007 would have been US$0.6 million or breakeven per share without the effect of derivative transactions and currency impacts on balance sheet items.

Significant events for the second half of the year include: -- Addition of two new members to executive team -- In October, John G. Williams was named executive vice president of exploration and J. Michael Kirksey was appointed executive vice president and chief financial officer. -- Strong production volumes -- Oil and gas sales for the quarter averaged 9,700 barrels of oil equivalent per day, higher than the second quarter average of 7,800 barrels of oil equivalent per day. -- Appraisal of Columbus discovery -- Appraisal operations continue on Block 23/16f in the United Kingdom sector of the Central North Sea. The well is located approximately three kilometers north of the discovery well that was drilled in late 2006. -- Continued drilling in the Norwegian North Sea -- Extension drilling activities are underway on an appraisal and future producing well in the Njord Northwest flank discovered in 2000 adjacent to the Njord field. -- Approval of the realignment of interests in two Norwegian blocks -- Endeavour assumed operatorship of PL 270 during the quarter. The company now serves as operator and holds a 65 percent working interest in PL 270 and PL 246 encompassing Block 35/3 on the Norwegian Continental Shelf. As operator, the company intends to accelerate the exploration and development of the Agat natural gas discoveries and pursue other exploration prospects in these two blocks. -- Participation in the Norwegian APA 2007 Licensing Round -- Endeavour for the third year in a row submitted applications for the offshore licensing round conducted by the Norwegian Ministry of Petroleum and Energy. Industry participation was very high and awards are expected in early 2008.

Guidance on Year 2007 Estimates Remains Unchanged

The table below sets forth estimates of the company's operating statistics for the full year ending December 31, 2007, in which Endeavour expects production of 9,000 - 9,400 BOEPD for the year. This reflects the full year impact of the acquisition of United Kingdom producing assets at the end of 2006 and sales of production from the Enoch field. Gas production is expected to represent 40 percent of total production. For the nine months ending September 30, 2007 production averaged 9,200 BOEPD.

Estimated Average Production (A) Daily Production (boepd) 9,000 to 9,400 Differentials (B) Oil ($/bbl) US$(4.25) Gas ($/mcf) US$(0.30) Gas Percentage of Total 40% Lease operating expense (per barrel) US$12-13 (A) Actual results may differ materially from these estimates. (B) For purposes of the estimates, assumptions of price differentials are based on location, quality and other factors, excluding the effects of derivative financial instruments. Gas price differentials are stated as premiums (discounts) from National Balancing Point pricing, and oil price differentials are stated as premiums (discounts) from Dated Brent pricing.

Earnings Conference Call Tomorrow, Tuesday, November 6, 2007 at 10:00 A.M. EST (9:00 A.M. CST)

Endeavour will host an analyst conference call and web cast tomorrow to discuss 2007 third quarter results and update operational plans for the rest of the year at 10:00 a.m. Eastern Standard Time. To participate and ask questions during the conference call, dial +1-888-220-8450 (U.S., toll-free) or +1-913-981-5552 (international) pass code: 1786437. To listen only to the live audio web cast via the Internet access Endeavour's internet home page at http://www.endeavourcorp.com. A replay will be available beginning at 12:00 p.m. EST November 6 through 12:00 p.m. EST on November 16, by dialing toll free +1-888-203-1112 (U.S.) or +1-719-457-0820 (international), pass code: 1786437.

Endeavour International Corporation is an international oil and gas exploration and production company focused on the acquisition, exploration and development of energy reserves in the North Sea. For more information, visit http://www.endeavourcorp.com.

This press release includes "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. Forward-looking statements give the company's current expectations or forecasts of future events. They include expected oil and natural gas production and future expenses, projections of future oil and natural gas prices, and statements concerning anticipated business strategy and other plans and objectives for future operations. The company cautions that undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this press release, and the company undertakes no obligation to update this information.

Factors that could cause actual results to differ materially from expected results are described in "Risks related to the company's Business" under "Risk Factors" in Item 1A of the company's 2006 annual report on Form 10-K filed on March 15, 2007. These risk factors include, among others, the company's ability to replace reserves and sustain production; the level of indebtedness; the availability of capital on an economic basis to fund reserve replacement costs; uncertainties in evaluating oil and natural gas reserves of acquired properties and associated potential liabilities; unsuccessful exploration and development drilling; and production interruptions that could adversely affect the company's cash flow.

Endeavour International Corporation Comparative Condensed Consolidated Balance Sheets (Amounts in thousands) (All currency in US dollars unless otherwise specified) September 30, December 31, 2007 2006 Assets Current Assets: Cash and cash equivalents $15,757 $39,814 Restricted cash 22,000 1,867 Accounts receivable 22,431 61,104 Prepaid expenses and other current assets 42,711 25,783 Total Current Assets 102,899 128,568 Property and Equipment, Net 336,212 319,315 Goodwill 291,752 291,752 Other Assets 18,150 34,835 Total Assets $749,013 $774,470 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $22,229 $36,928 Current maturities of debt - 2,410 Accrued expenses and other 38,428 41,799 Total Current Liabilities 60,657 81,137 Long-Term Debt 266,250 303,840 Deferred Taxes 146,375 115,155 Other Liabilities 53,913 32,510 Total Liabilities 527,195 532,642 Commitments and Contingencies Series C Convertible Preferred Stock 124,613 125,000 Stockholders' Equity 97,205 116,828 Total Liabilities and Stockholders' Equity $749,013 $774,470

Endeavour International Corporation Comparative Condensed Consolidated Statement of Operations (Amounts in thousands, except per share data) Three Months Nine Months Ended September 30, Ended September 30, 2007 2006 2007 2006 Revenues $47,169 $6,726 $121,580 $22,847 Cost of Operations: Operating expenses 9,546 2,556 29,984 7,712 Depreciation, depletion and amortization 21,728 3,374 56,189 7,901 Impairment of oil and gas properties - - - 849 General and administrative 4,096 5,447 14,623 16,196 Total Expenses 35,370 11,377 100,796 32,658 Income (Loss) From Operations 11,799 (4,651) 20,784 (9,811) Other Income (Expense): Commodity derivatives: Realized gains 341 - 15,356 - Unrealized gains (losses) (13,032) 20,453 (41,340) 17,151 Interest income 552 435 1,738 1,604 Interest expense (4,676) (1,041) (13,604) (3,384) Other (1,430) 621 (3,310) (158) Total Other Income (Expense) (18,245) 20,468 (41,160) 15,213 Income (Loss) Before Income Taxes (6,446) 15,817 (20,376) 5,402 Income Tax Expense 2,395 553 1,812 7,386 Net Income (Loss) (8,841) 15,264 (22,188) (1,984) Preferred Stock Dividends 2,840 39 8,529 118 Net Income (Loss) to Common Stockholders $(11,681) $15,225 $(30,717) $(2,102) Net Income (Loss) Per Common Share: Basic $(0.09) $0.19 $(0.25) $(0.03) Diluted $(0.09) $0.17 $(0.25) $(0.03) Weighted Average Number of Common Shares Outstanding: Basic 123,649 80,647 121,981 79,722 Diluted 123,649 97,033 121,981 79,722

Endeavour International Corporation Comparative Condensed Consolidated Statement of Cash Flows (Amounts in thousands) Nine Months Ended September 30, 2007 2006 Cash Flows from Operating Activities: Net loss $(22,188) $(1,984) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation, depletion and amortization 56,189 7,901 Impairment of oil and gas properties - 849 Deferred tax expense (benefit) (1,414) 2,016 Unrealized (gain) loss on commodity derivatives 41,340 (17,151) Amortization of non-cash compensation 3,973 9,179 Amortization of loan costs 1,275 402 Other 187 101 Changes in assets and liabilities: 15,827 (10,710) Net Cash Provided by (Used in) Operating Activities 95,189 (9,397) Cash Flows From Investing Activities: Capital expenditures (63,325) (30,520) Acquisitions, net of cash acquired - (11,637) (Increase) decrease in restricted cash (20,133) 3,650 Net Cash Used in Investing Activities (83,458) (38,507) Cash Flows From Financing Activities: Net repayments of borrowings (40,000) - Proceeds from warrant and stock option exercises - 3,210 Other (157) - Net Cash Provided by (Used in) Financing Activities (40,157) 3,210 Net Decrease in Cash and Cash Equivalents (28,426) (44,694) Effect of Foreign Currency Changes on Cash 4,369 1,110 Cash and Cash Equivalents, Beginning of Period 39,814 76,127 Cash and Cash Equivalents, End of Period $15,757 $32,543

Endeavour International Corporation Operating Statistics Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 2007 2006 Production: Oil and condensate sales (Mbbl): United Kingdom 361 - 982 - Norway 136 116 391 389 Total 497 116 1,373 389 Gas sales (MMcf): United Kingdom 2,306 - 6,657 - Norway 72 50 181 143 Total 2,378 50 6,838 143 Total sales (MBOE): United Kingdom 745 - 2,092 - Norway 148 124 421 413 Total 893 124 2,513 413 BOE per day 9,713 1,353 9,205 1,512 Realized Prices: Oil and condensate price ($ per Bbl): Before commodity derivatives $70.17 $69.24 $62.55 $66.56 Effect of commodity derivatives $(3.24) $(14.21) $1.18 $(11.14) Realized prices including commodity derivatives $66.93 $55.03 $63.73 $55.42 Gas price ($ per Mcf): Before commodity derivatives $5.16 $6.67 $5.22 $9.04 Effect of commodity derivatives $0.82 $ - $2.01 $ - Realized prices including commodity derivatives $5.98 $6.67 $7.23 $9.04 Equivalent oil price ($ per BOE): Before commodity derivatives $52.79 $67.27 $48.38 $65.85 Effect of commodity derivatives $0.38 $(13.25) $6.11 $(10.50) Realized prices including commodity derivatives $53.17 $54.02 $54.49 $55.35

Endeavour International Corporation Reconciliation of GAAP to Non-GAAP Measures

As required under Regulation G of the Securities Exchange Act of 1934, provided below are reconciliations of net income (loss) to the following non-GAAP financial measures: net income as adjusted, EBITDA and discretionary cash flow. The company uses these non-GAAP measures as key metrics for the management of the company and to demonstrate the company's ability to internally fund capital expenditures and service debt. The non-GAAP measures are useful in comparisons of oil and gas exploration and production companies as they exclude non-operating fluctuations in assets and liabilities.

(in millions, except per share) Three Months Ended Nine Months Ended September 30, June 30, September 30, 2007 2007 2007 2006 Net income to common shareholders, as reported $(11.7) $(13.0) $(30.7) $(2.1) Unrealized (gains) losses on derivatives (net of 50% tax) 6.5 6.3 20.7 (8.6) Currency impact of deferred taxes 3.5 3.2 7.9 0.8 Currency impact on other items 1.3 1.1 2.8 (0.3) Tax impact (0.2) (3.0) (3.4) - Net income as adjusted (0.6) (5.4) (2.7) (10.2) Net interest expense 4.1 3.6 11.9 1.8 Depreciation, depletion and amortization 21.7 15.2 56.2 7.9 Impairment of oil and gas properties - - - 0.8 Income tax expense, adjusted for tax impact above 5.7 4.3 17.9 (2.0) Preferred stock dividends 2.8 2.8 8.5 0.1 Other expense 0.2 0.2 0.5 0.5 EBITDA $33.9 $20.7 $92.3 $(1.1) Weighted average number of common shares outstanding - basic 123.6 123.7 122.0 79.7 Earnings per share, as adjusted $(0.00) $(0.04) $(0.02) $(0.13) Net loss $(8.8) $(10.2) $(22.2) $(2.0) Depreciation, depletion and amortization 21.7 15.2 56.2 7.9 Impairment of oil and gas properties - - - 0.8 Deferred tax expense (benefit) (0.5) (1.2) (1.4) 2.0 Unrealized (gain) loss on commodity derivatives 13.0 12.6 41.3 (17.2) Amortization of non-cash compensation 1.2 0.9 4.0 9.2 Amortization of loan costs 0.4 0.4 1.3 0.4 Other 0.2 0.1 0.2 0.2 Discretionary cash flow $27.2 $17.8 $79.4 $1.3

Web site: http://www.endeavourcorp.com

media, Janice Aston White, +1-713-307-8780, or investors, Rusty Fisher, +1-713-307-8770, both of Endeavour International Corporation