Endeavour International Corporation reports the acquisition of significant positions in four US resource plays, including the highly prospective Haynesville and Marcellus gas shale plays in North Louisiana/East Texas and Western Pennsylvania, respectively, and new frontier plays in Alabama and Montana. Altogether, Endeavour has acquired interests in 526,000 gross acres (165,000 net acres) in these four areas for an approximate $27 million initial investment.

"These acquisitions represent a major step in Endeavour's strategy to establish a growth oriented portfolio of onshore properties in the United States to complement our development and producing assets in the UK," said William L. Transier, chairman, chief executive officer and president. "We have gained material positions in the proven Haynesville and Marcellus gas shale plays as well as new frontier opportunities in Montana and Alabama where we will be one of the first industry participants. Anticipated production from these plays combined with our North Sea development projects has the potential to grow Endeavour's production to meet our previously stated five-year production goal of 40,000 barrels of oil equivalent per day, balanced between the US and UK.

"We believe these assets will provide us with a predictable and sustainable source of growth in reserves and production that will balance the longer cycle times of our North Sea assets where Endeavour is developing several large natural gas fields to serve the European market. These new acreage positions in the United States are also well-balanced between proven and prospective plays while also providing exposure to oil," Transier added.

Endeavour funded the initial cash contributions for these new joint ventures from existing cash reserves. Future drilling costs are expected to be funded from existing cash balances, expanding credit capacity and potential capital market activity.

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