Endeavour Completes Financing Transaction

HOUSTON, Aug. 16 /PRNewswire-FirstCall/ -- Endeavour International Corporation (NYSE Amex: END) (LSE: ENDV) today announced the closing of a three-year $150 million senior secured credit facility led by Cyan Partners, LP, a middle market direct lending fund.  Of the total proceeds, $66 million was used to repay senior bank and second lien facilities. The remaining funds will be spent to further the company's growth program in the United Kingdom and the United States and for general business purposes.

"The flexibility of this financing arrangement meets the needs of our current development projects and allows us to accelerate future growth plans," said J. Michael Kirksey, executive vice president and chief financial officer.  "We are pleased to have formed this partnership with Cyan, which recognizes the potential Endeavour offers and wants to play a part in bringing this opportunity to reality."  

The facility includes provisions that permit the company to sell assets and reinvest the proceeds in the business, make acquisitions and incur additional debt.  It bears cash interest of 12 percent plus three percent payment-in-kind that the company may pay in cash at its option.  The facility contains a standard covenant package and is callable after the first year.  Houlihan Lokey acted as the company's exclusive placement agent for the financing facility. As part of the overall financing transaction, Cyan purchased 8.99 million shares of Endeavour common stock for $1.13 per share, the closing price as of Friday, August 13, 2010.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

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.

Certain statements in this news release should be regarded as "forward-looking" statements within the meaning of the securities laws.  These statements speak only of as of the date made.  Such statements are subject to assumptions, risk and uncertainty.  Actual results or events may vary materially.

SOURCE Endeavour International Corporation