HOUSTON, March 12 /PRNewswire/ --

Endeavour International Corporation (NYSE-Alt: END) (LSE: ENDV) today reported net income to common stockholders for 2008 increased to US$45.7 million or US$0.32 per diluted share as compared to a loss of US$60.3 million or US$0.49 per diluted share in 2007. Revenues in 2008 increased more than 47 percent to US$260.4 million from US$176.1 million in 2007. The company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$176.5 million from US$124.1 million in 2007. Discretionary cash flow for the year was US$120.8 million.

For the fourth quarter 2008, net income to common stockholders was US$56.4 million or US$0.29 per diluted share as compared to a net loss of US$29.6 million or US$0.23 per diluted share for the same period in 2007. Revenues for the quarter were US$41.4 million reflecting sales of 7,900 barrels of oil equivalent per day (boepd) compared to revenues of US$54.5 million from sales of 8,300 boepd in the prior period in 2007. Adjusted EBITDA was US$33.7 million, a decrease from US$35.2 million in the same quarter in 2007.

This past year was a breakthrough period for us as we achieved both significant financial and operational success, said William L. Transier, chairman and chief executive officer. We met our forecasted production goals and that combined with our hedging strategy resulted in cash flow that funded our growth activities and allowed us to significantly pay down debt. The company recorded an uncommon industry feat with 100 percent technical success for the seven exploratory and appraisal wells drilled during the year. As we move forward, Endeavour is involved in three significant development projects that are expected to more than double our production by the end of 2010. All of this was accomplished in a highly volatile and challenging marketplace.

Endeavour also reported a reserve replacement rate of 175 percent of 2008 production. Proved and probable reserves at year-end 2008 increased to 32.2 million barrels of oil equivalent (mmboe) compared to 29.8 mmboe a year ago (see Table). Extensions, discoveries and upward revisions to prior estimates added 5.6 mmboe, more than replacing production of 3.2 mmboe or approximately 8,800 boepd during 2008.

Net Reserves at December 31, 2008 Oil NGL Gas Equivalents (mbl) (mbl) (mcf) (mboe) Proved Developed Producing 1,811 320 11,496 4,047 Non-Producing 618 27 416 714 Proved Undeveloped 773 6 20,886 4,260 Proved (1P) 3,202 353 32,798 9,021 Probable 8,128 435 87,503 23,147 Proved + Probable (2P) 11,330 788 120,301 32,168 Possible 14,736 489 113,125 34,079 Proved + Probable + Possible (3P) 26,066 1,277 233,426 66,247 Source: Netherland, Sewell and Associates, Inc.

Other highlights for the fourth quarter and the year are as follows:

Drilled two highly successful appraisal wells -- Endeavour participated in the drilling of two strategic appraisal wells in the United Kingdom sector of the North Sea both of which significantly extended the potential of previous discoveries.

- Rochelle - The commerciality of the undeveloped Rochelle discovery in Block 15/27 was confirmed when the Rochelle 15/27-11 well was drilled to a total depth of 10,369 feet and tested at flow rates of 41 million cubic feet of gas per day and 2,300 barrels of oil condensate per day. Endeavour holds a 55.6 percent interest in the well and is the operator for the block. - Cygnus - The Cygnus 44/12a-3 appraisal well in the Southern Gas Basin established the presence of recoverable gas reserves in a second fault lock near the 2006 discovery well in Block 44/11. The well was drilled to a otal depth of 12,433 feet and flow tested at rates up to 32 million cubic feet of gas per day. Endeavour holds a 12.5 percent interest in the Cygnus field area spread over two United Kingdom blocks, 44/11a and 12a.

Launched onshore exploration program in the United States -- An initiative to develop a production base in the United States resulted in a commercial natural gas discovery and first production in late 2008.

- Garwood prospect - Production began from the Cochran #1 well in the Garwood prospect in Colorado County, Texas at an initial rate of 170 boepd net during December 2008. Endeavour has a 20 percent equity interest and approximately a 15 percent net revenue interest in the well. - Alligator Bayou prospect - Endeavour holds a 10 percent equity interest and seven percent net revenue interest in the Alligator Bayou prospect. The first well to be drilled, the Armour Runnels ST #1 well in Matagorda County, Texas, reached a total depth of 23,830 feet. Flow tests are underway for multiple deep zones.

Conducted successful exploratory activities in Norway -- During 2008, the company made three discoveries in satellite drilling near producing fields in the Norwegian Continental Shelf. The Galvort prospect in production license 348 and the Noatun C prospect in production license 107 were drilled as satellites to the Njord field and both encountered natural gas reservoirs. Endeavour holds a 2.5 percent equity interest in the two discoveries and the Njord field. In the Brage field, an oil discovery was made at the Knockandoo prospect in production license 055 that flowed during testing at 18,000 gross (800 net) barrels of oil per day and began producing in December. Endeavour holds a 4.44 percent equity interest in the Brage field.

Established capital budget of up to US$90 million -- Endeavour will continue to fund its planned capital spending from cash flow generated by its operations. A significant portion of the budget will be directed toward moving its three major development projects in the United Kingdom toward first production. Approximately US$12 - US$15 million will be spent for infield drilling and facilities improvements to maintain production levels. Endeavour will continue its ongoing exploration campaign in the North Sea and South Texas based on internal cash availability with plans for seven to nine wells, two of which will be fully carried.

Guidance for Year 2009 The table below sets forth estimates of the company's operating statistics for the full year ending December 31, 2009. Estimated Average Production (A) Daily Production (boepd) 6,500 to 7,500 Differentials (B) Oil ($/bbl) $(4.50) to $(5.50) Gas ($/mcf) $(0.10) to $(0.20) Gas Percentage of Total 45% to 50% Lease operating expense (per barrel) $11.00 to $13.00 (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 Today, Thursday, March 12, 2009 at 9:00 a.m., Central Daylight Time, 2:00 p.m. Greenwich Mean Time

Endeavour will host an analyst conference call and web cast today on Thursday, March 12, 2009 to discuss 2008 fourth quarter and full-year results and update operational plans at 9 A.M. Central Daylight Time. To participate and ask questions during the conference call, dial the local country telephone number and the confirmation code 5204926. The toll-free numbers are 888-708-5692 in the United States, 0800-051-7166 in the United Kingdom, and 800-191-83 in Norway. Other international callers should dial +1-913-312-0962 (tolls apply). To listen only to the live audio webcast, access Endeavour's home page at http://www.endeavourcorp.com. A replay will be available beginning at 12:00 p.m. Central Daylight Time on March 12 through 12:00 p.m. Central Daylight Time on March 18 by dialing toll free 888-203-1112 (U.S.) or +1-719-457-0820 (international), confirmation code 5204926.

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

Additional information for investors:

Certain statements in this press release are forward-looking and are based upon Endeavour's current belief as to the outcome and timing of future events. All statements, other than statements of historical facts, that address activities that Endeavour plans, expects, believes, projects, estimates, or anticipates will, should or may occur in the future, including future production of oil and gas, future capital expenditures and drilling of wells and future financial or operating results are forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include the timing and extent of changes in commodity prices for oil and gas, operating risks and other risk factors as described in Endeavour's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (SEC). Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, Endeavour's actual results and plans could differ materially from those expressed in the forward-looking statements.

The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use certain terms such as probable and possible reserves that the SEC's guidelines strictly prohibit us from including in our filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by Endeavour. Endeavour is also subject to the requirements of the London Stock Exchange and considers the disclosures in this release to be appropriate and/or required under the guidelines of that exchange. Factors affecting ultimate recovery include oil and gas pricing, the scope of our ongoing drilling program, which will be directly affected by the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling results, transportation constraints, regulatory approvals and other factors; and actual drilling results, including geological and mechanical factors affecting recovery rates. Investors are urged to consider closely the disclosure in our Form 10-K and each of our Form 10-Qs, available free of charge on our internet site ( http://www.endeavourcorp.com). You can also obtain these forms from the SEC on the SEC's internet site (http://www.sec.gov) or by calling 1-800-SEC-0330.

Endeavour International Corporation Comparative Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands) December 31, 2008 2007 Assets Current Assets: Cash and cash equivalents $38,156 $16,440 Restricted cash 20,739 22,000 Accounts receivable 26,884 33,291 Prepaid expenses and other current assets 47,626 46,516 Total Current Assets 133,405 118,247 Property and Equipment, Net 312,957 335,023 Goodwill 281,943 283,324 Other Assets 9,165 11,029 Total Assets $737,470 $747,623 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $42,348 $31,036 Current maturities of debt 13,000 - Accrued expenses and other 55,155 50,013 Total Current Liabilities 110,503 81,049 Long-Term Debt 214,855 266,250 Deferred Taxes 104,127 135,552 Other Liabilities 65,014 69,623 Total Liabilities 494,499 552,474 Commitments and Contingencies Series C Convertible Preferred Stock 125,000 125,000 Stockholders' Equity 117,971 70,149 Total Liabilities and Stockholders' Equity $737,470 $747,623 Endeavour International Corporation Comparative Condensed Consolidated Statement of Operations (Unaudited) (Amounts in thousands, except per share data) Three Months Year Ended December 31, Ended December 31, 2008 2007 2008 2007 Revenues $41,370 $54,484 $260,441 $176,064 Cost of Operations: Operating expenses 11,689 11,060 46,576 41,044 Depreciation, depletion and amortization 17,661 20,661 81,734 76,850 Impairment of oil and gas properties 36,970 - 36,970 - General and administrative 5,083 5,256 19,636 19,878 Total Expenses 71,403 36,977 184,916 137,772 Income (Loss) From Operations (30,033) 17,507 75,525 38,292 Other Income (Expense): Derivatives: Realized gains (losses) 2,697 (3,309) (28,578) 12,048 Unrealized gains (losses) 117,905 (47,792) 76,666 (89,132) Interest expense (4,410) (5,137) (22,548) (18,742) Other 6,680 850 12,154 (723) Total Other Income (Expense) 122,872 (55,388) 37,694 (96,549) Income (Loss) Before Income Taxes 92,839 (37,881) 113,219 (58,257) Income Tax Expense (Benefit) 33,728 (10,992) 56,729 (9,180) Net Income (Loss) 59,111 (26,889) 56,490 (49,077) Preferred Stock Dividends 2,696 2,709 10,809 11,238 Net Income (Loss) to Common Stockholders $56,415 $(29,598) $45,681 $(60,315) Net Income (Loss) Per Common Share: Basic $0.44 $(0.23) $0.36 $(0.49) Diluted $0.29 $(0.23) $0.32 $(0.49) Weighted Average Number of Common Shares Outstanding: Basic 128,148 126,492 128,312 123,118 Diluted 212,661 126,492 178,312 123,118 Endeavour International Corporation Comparative Condensed Consolidated Statement of Cash Flows (Unaudited) (Amounts in thousands) Year Ended December 31, 2008 2007 Cash Flows from Operating Activities: Net income (loss) $56,490 $(49,077) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 81,734 76,850 Impairment of oil and gas properties 36,970 - Deferred tax expense (benefit) 17,682 (12,925) Unrealized (gain) loss on derivative instruments (76,666) 89,132 Amortization of non-cash compensation 3,226 4,968 Foreign currency exchange (gain) loss on non-operating liabilities (10,508) 1,078 Other 11,879 2,948 Changes in working capital 12,373 15,532 Net Cash Provided by Operating Activities 133,180 128,506 Cash Flows From Investing Activities: Capital expenditures (66,370) (88,007) (Increase) decrease in restricted cash and other investing activities 1,519 (20,133) Net Cash Used in Investing Activities (64,851) (108,140) Cash Flows From Financing Activities: Net repayment of borrowings (32,000) (40,000) Payment of preferred dividends (10,625) (2,656) Financing costs paid (3,538) (263) Other financing activities (450) (821) Net Cash Provided by (Used in) Financing Activities (46,613) (43,740) Net Increase (Decrease) in Cash and Cash Equivalents 21,716 (23,374) Cash and Cash Equivalents, Beginning of Period 16,440 39,814 Cash and Cash Equivalents, End of Period $38,156 $16,440 Endeavour International Corporation Operating Statistics (Unaudited) Three Months Ended Year Ended December 31, December 31, 2008 2007 2008 2007 Sales Volume: Oil and condensate sales (Mbbl): United Kingdom 198 291 1,032 1,274 Norway 181 129 726 519 Total 379 420 1,758 1,793 Gas sales (MMcf): United Kingdom 1,383 1,899 6,532 8,556 Norway 681 147 2,322 328 Total 2,064 2,046 8,854 8,884 Total sales (MBOE): United Kingdom 429 608 2,121 2,700 Norway 294 153 1,113 574 Total 723 761 3,234 3,274 BOE per day 7,859 8,268 8,835 8,969 Physical Production Volume: Total production (BOE per day) United Kingdom 5,059 6,981 5,804 7,660 Norway 3,680 1,732 3,033 1,608 Total 8,739 8,713 8,837 9,268 Realized Prices: Oil and condensate price ($per Bbl): Before commodity derivatives $50.23 $82.03 $90.53 $67.11 Effect of commodity derivatives $8.35 $(12.98) $(14.50) $(2.13) Realized prices including commodity derivatives $58.58 $69.05 $76.03 $64.98 Gas price ($per Mcf): Before commodity derivatives $10.82 $9.80 $11.44 $6.27 Effect of commodity derivatives $(0.23) $1.05 $(0.35) $1.79 Realized prices including commodity derivatives $10.59 $10.85 $11.09 $8.06 Equivalent oil price ($per BOE): Before commodity derivatives $57.22 $71.63 $80.54 $53.78 Effect of commodity derivatives $3.73 $(4.35) $(8.84) $3.68 Realized prices including commodity derivatives $60.95 $67.28 $71.70 $57.46

Endeavour International Corporation Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (Amounts in millions) 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, 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. Three Months Ended Year Ended December 31, December 31, 2008 2007 2008 2007 Net income (loss) to common shareholders, as reported $56.4 $(29.6) $45.7 $(60.3) Impairment of oil and gas properties (net of 50% tax) 18.5 - 18.5 - Unrealized (gains) losses on derivatives (net of 50% tax) (59.3) 23.9 (37.7) 44.6 Currency impact of deferred taxes (16.5) (3.1) (20.8) 4.8 Net income (loss) as adjusted $(0.9) $(8.8) $5.7 $(10.9) Net income (loss) to common shareholders, as reported $56.4 $(29.6) $45.7 $(60.3) Unrealized (gains) losses on derivatives (117.9) 47.8 (76.7) 89.1 Net interest expense 4.2 4.6 21.3 16.4 Depreciation, depletion and amortization 17.6 20.7 81.7 76.9 Impairment of oil and gas properties 37.0 - 37.0 - Income tax expense (benefit) 33.7 (11.0) 56.7 (9.2) Preferred stock dividends 2.7 2.7 10.8 11.2 Adjusted EBITDA $33.7 $35.2 $176.5 $124.1 Net income (loss) $59.1 $(26.9) $56.5 $(49.1) Depreciation, depletion and amortization 17.6 20.7 81.7 76.9 Impairment of oil and gas properties 37.0 - 37.0 - Deferred tax expense (benefit) 23.3 (11.5) 17.7 (12.9) Unrealized (gains) losses on derivatives (117.9) 47.8 (76.7) 89.1 Amortization of non-cash compensation 0.8 1.0 3.2 5.0 Other (4.2) 2.5 1.4 4.0 Discretionary cash flow $15.7 $33.6 $120.8 $113.0 Discretionary cash flow is equal to cash flow from operating activities before the changes in operating assets and liabilities.

Investor Relations, Mike Kirksey, +44(0)207-451-2381, +1-713-307-8788; or Jeffrey Auld of Canaccord Adams - UK Broker, + 44(0)207-050-6500, or Philip Dennis, +44(0)207-743-6363, or Henry Lerwill, +44(0)203-178-6242, both of Pelham Public Relations - UK Media, all for Endeavour International Corporation