HOUSTON, August 5 /PRNewswire/ --

Endeavour International Corporation (Amex: END) (LSE: ENDV) today reported discretionary cash flow of US$38.6 million in the second quarter of 2008 that more than doubled from the US$17.8 million reported in the second quarter of 2007 and increased sequentially from US$36.3 million reported in the first quarter. Revenues for the second quarter, boosted by high sales volumes of 10,222 barrels of oil equivalent per day (boepd), were up 273 percent to US$86.3 million from US$31.6 million in the same period in 2007 and US$61.3 million reported in the first quarter of 2008. Net income as adjusted for the quarter was US$3.0 million, or US$0.02 per share, compared to net loss as adjusted of US$3.5 million, or US$0.03 per share, in the second quarter last year. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increased to US$52.5 million in the second quarter this year from US$19.4 million in the second quarter a year ago and US$42.6 million in the first period of 2008.

"Strong operating and financial performance this quarter generated discretionary cash flow sufficient to fund an active exploration and development program while reducing debt by another US$15 million," said William L. Transier, chairman, chief executive officer and president. "The solid foundation of production and cash flow we have built at Endeavour is a competitive advantage among peer group companies that are being forced into the tumultuous capital markets to fund growth activities."

On a GAAP basis, the company reported a net loss to common stockholders for the second quarter of 2008 of US$66.7 million or US$0.52 per share as compared to a net loss of US$13.0 million or US$0.11 per share for the year-ago quarter.

Highlights of the first half of the year include:

Natural gas discovery and successful appraisal in Norway -- The company's first well as part of its 2008 exploration campaign discovered natural gas at the Galvort prospect on production license 348 in the Norwegian North Sea. A sidetrack further confirmed the discovery encountering a gas column in Middle to Lower Jurassic reservoir rocks. Geologic evaluations of the data are continuing. Endeavour Energy Norge AS holds 2.5 percent working interest in production license 348.

Norwegian exploratory drilling underway -- Two exploration wells are currently drilling in the Norwegian Continental shelf. The Noatun C, a prospect in Block 6407/7 north of the Njord field, is nearing its objective Jurassic target with results expected in late August. Endeavour holds a 2.5 percent interest in the block. The Brage North, an exploration target in Block 31/4, began drilling in mid-July from the Brage platform to test two Jurassic reservoirs. The company holds a 4.4 percent working interest in the block.

Participation in 25th Offshore Oil and Gas Licensing Round -- Endeavour submitted applications in the largest license round to date with a record breaking 2,297 blocks or part blocks in United Kingdom waters offered for exploration. The company applied for 10 full or partial blocks, mostly located in its focus areas. The results of the round are expected to be announced toward the end of the year.

Marked production milestone -- The Alba field in Block 16/26 in the Central North Sea produced its 350 millionth barrel of oil in April. The asset is on track to produce more than 500 million barrels of oil through technology and infrastructure improvements. Endeavour holds a 2.25 percent working interest in the field.

Guidance on Year 2008 Estimates Remains Unchanged

The table below sets forth estimates of the company's operating statistics for the full year ending December 31, 2008.

(All amounts in US dollars unless otherwise noted.) Estimated Average Production (A) Daily Production (boepd) 8,600 to 9,000 Differentials (B) Oil ($/bbl) $(4.00) to $(5.00) Gas ($/mcf) $(0.30) to $(0.40) Gas Percentage of Total 50% to 55% Lease operating expense (per barrel) $14.00 to $15.00 (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 and Web Cast, Tuesday, August 5, 2008 at 9:00 A.M. CDT (10:00 A.M. EDT) (3:00 P.M. UK)

Endeavour will host a conference call and web cast tomorrow to discuss 2008 second quarter financial and operational results at 9:00 a.m. Central Daylight Time, 3:00 p.m. UK time. To participate and ask questions during the conference call, dial the local country telephone number and enter the confirmation code 4533858. The toll-free numbers are 888-599-8658 in the United States, 0 800 051 7166 in the United Kingdom, and 800 191 83 in Norway. Other international callers should dial 913-981-5589 (tolls apply). To listen only to the live audio web cast access Endeavour's home page at http://www.endeavourcorp.com.

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 annual reports on Form 10-K. 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.

For further information: Endeavour - Investor Relations Mike Kirksey +1-713-307-8700 Tristone Capital - UK Broker Majid Shafiq +44-(0)-207-355-5800 Pelhampr - Media Philip Dennis +44-(0)-207-743-6363 Mark Antelme +44-(0)-203-178-6242

Endeavour International Corporation Comparative Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, 2008 2007 Assets Current Assets: Cash and cash equivalents $29,379 $16,440 Restricted cash 22,000 22,000 Accounts receivable 39,502 33,291 Prepaid expenses and other current assets 75,083 46,516 Total Current Assets 165,964 118,247 Property and Equipment, Net 320,981 335,023 Goodwill 284,549 283,324 Other Assets 8,909 11,029 Total Assets $780,403 $747,623 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $24,286 $31,036 Accrued expenses and other 116,711 50,013 Total Current Liabilities 140,997 81,049 Long-Term Debt 238,969 266,250 Deferred Taxes 107,617 135,552 Other Liabilities 182,321 69,623 Total Liabilities 669,904 552,474 Commitments and Contingencies Series C Convertible Preferred Stock 125,000 125,000 Stockholders' Equity (14,501) 70,149 Total Liabilities and Stockholders' Equity $780,403 $747,623

Endeavour International Corporation Comparative Condensed Consolidated Statement of Operations (Unaudited) (Amounts in thousands, except per share data) Three Months Six Months Ended June 30, Ended June 30, 2008 2007 2008 2007 Revenues $86,342 $31,621 $147,596 $74,411 Cost of Operations: Operating expenses 13,969 9,728 23,988 20,438 Depreciation, depletion and amortization 23,720 15,247 45,123 34,461 General and administrative 4,836 5,160 9,587 10,527 Total Expenses 42,525 30,135 78,698 65,426 Income (Loss) From Operations 43,817 1,486 68,898 8,985 Other Income (Expense): Derivatives: Realized gains (losses) (14,494) 3,943 (17,644) 15,015 Unrealized losses (130,686) (12,612) (160,328) (28,308) Interest income 325 582 691 1,186 Interest expense (5,330) (4,155) (13,536) (8,928) Other (520) (1,321) (1,291) (1,880) Total Other Expense (150,705) (13,563) (192,108) (22,915) Loss Before Income Taxes (106,888) (12,077) (123,210) (13,930) Income Tax Benefit (42,864) (1,873) (42,394) (582) Net Loss (64,024) (10,204) (80,816) (13,348) Preferred Stock Dividends 2,709 2,844 5,405 5,688 Net Loss to Common Stockholders $(66,733) $(13,048) $(86,221) $(19,036) Basic and Diluted Loss per Common Share $(0.52) $(0.11) $(0.68) $(0.16) Weighted Average Number of Common Shares Outstanding: Basic and Diluted: 127,626 123,661 127,581 121,133

Endeavour International Corporation Comparative Condensed Consolidated Statement of Cash Flows (Amounts in thousands) Six Months Ended June 30, 2008 2007 Cash Flows from Operating Activities: Net loss $(80,816) $(13,348) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 45,123 34,461 Deferred tax benefit (58,277) (940) Unrealized loss on derivatives 160,328 28,308 Amortization of non-cash compensation 1,196 2,735 Other 7,372 933 Net change in operating assets and liabilities (2,972) 26,264 Net Cash Provided by Operating Activities 71,954 78,413 Cash Flows From Investing Activities: Capital expenditures (32,168) (41,707) Decrease in restricted cash - (20,133) Net Cash Used in Investing Activities (32,168) (61,840) Cash Flows From Financing Activities: Net repayments of borrowings (17,000) (33,000) Dividends paid (5,313) - Financing costs paid (4,282) - Other financing (252) (157) Net Cash Used in Financing Activities (26,847) (33,157) Net Increase (Decrease) in Cash and Cash Equivalents 12,939 (16,584) Effect of Foreign Currency Changes on Cash - 2,617 Cash and Cash Equivalents, Beginning of Period 16,440 39,814 Cash and Cash Equivalents, End of Period $29,379 $25,847

Endeavour International Corporation Comparative Operating Statistics (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Sales volume: Oil and condensate sales (Mbbl): United Kingdom 332 224 598 621 Norway 246 124 342 255 Total 578 348 940 876 Gas sales (MMcf): United Kingdom 1,644 2,091 3,679 4,351 Norway 467 55 1,065 109 Total 2,111 2,146 4,744 4,460 Total sales (MBOE): United Kingdom 606 573 1,211 1,346 Norway 324 133 520 273 Total 930 706 1,731 1,619 BOE per day 10,222 7,758 9,509 8,946 Physical production volume: Total production (MBOE): United Kingdom 6,123 7,478 6,678 7,840 Norway 2,791 1,569 2,843 1,515 Total 8,914 9,047 9,521 9,355 Realized Sales Prices: Oil and condensate price ($ per Bbl): Before commodity derivatives $105.45 $65.34 $99.44 $58.23 Effect of commodity derivatives $(20.57) $0.25 $(19.42) $3.69 Realized prices including commodity derivatives $84.88 $65.59 $80.02 $61.92 Gas price ($ per Mcf): Before commodity derivatives $12.01 $4.13 $11.41 $5.25 Effect of commodity derivatives $(1.23) $1.80 $0.13 $2.64 Realized prices including commodity derivatives $10.78 $5.93 $11.54 $7.89 Equivalent oil price ($ per BOE): Before commodity derivatives $92.82 $44.79 $85.29 $45.95 Effect of commodity derivatives $(15.58) $5.59 $(10.20) $9.27 Realized prices including commodity derivatives $77.24 $50.38 $75.09 $55.22

Endeavour International Corporation Reconciliation of GAAP to Non-GAAP Measures (Unaudited) (Amounts in thousands, except per share data) 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 Six Months Ended June 30, Ended June 30, 2008 2007 2008 2007 Net loss $(64,024) $(10,204) $(80,816) $(13,348) Depreciation, depletion and amortization 23,720 15,247 45,123 34,461 Deferred tax benefit (55,133) (1,201) (58,277) (940) Unrealized loss on derivative instruments 130,686 12,612 160,328 28,308 Amortization of non-cash compensation 652 851 1,196 2,735 Amortization of loan costs and discount 1,423 413 4,579 840 Non-cash interest expense 1,174 - 2,044 - Other 117 79 750 93 Discretionary cash flow (1) $38,615 $17,797 $74,927 $52,149 Net loss to common shareholders, as reported $(66,733) $(13,049) $(86,220) $(19,036) Unrealized losses on derivatives(2) 69,626 6,306 84,234 14,154 Currency impact of deferred taxes 81 3,225 2,722 4,462 Net income (loss), as adjusted $2,974 $(3,518) $736 $(420) Weighted average number of common shares outstanding - basic and diluted 127,626 123,661 127,581 121,133 Earnings per share, as adjusted $0.02 $(0.03) $0.01 $(0.00) Net loss to common shareholders, as reported $(66,733) $(13,049) $(86,220) $(19,036) Unrealized losses on derivatives 130,686 12,612 160,328 28,308 Net interest expense 5,004 3,574 12,845 7,742 Depreciation, depletion and amortization 23,720 15,247 45,123 34,461 Income tax benefit (42,864) (1,873) (42,394) (582) Preferred stock dividends 2,709 2,844 5,404 5,688 Adjusted EBITDA $52,522 $19,355 $95,086 $56,581 (1) Discretionary cash flow is equal to cash flow from operating activities before the changes in operating assets and liabilities. (2) Net of tax benefits of US$61,060, US$6,306, US$76,094 and US$14,154, respectively.

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

Investor Relations, Mike Kirksey of Endeavour, +1-713-307-8700; or UK Broker, Majid Shafiq of Tristone Capital, +44-(0)-207-355-5800, for Endeavour; or Media, Philip Dennis, +44-(0)-207-743-6363, or Mark Antelme, +44-(0)-203-178-6242, both of Pelhampr, for Endeavour