Endeavour to participate in North Sea wells

Endeavour International Corp. has reached an agreement in principle with Apache Corp. to participate in two exploratory wells to be drilled by Apache during the fourth quarter in the Norwegian North Sea.

Oct. 5, 2006

By OGJ editors
HOUSTON, Oct. 5 -- Endeavour International Corp. has reached an agreement in principle with Apache Corp. to participate in two exploratory wells to be drilled by Apache during the fourth quarter in the Norwegian North Sea.

The farm-in would call for Endeavour to provide Apache the second slot of its two-well drilling commitment for a semisubmersible in return for an option to purchase a 10% working interest in the Howgate prospect on Block 9/4a in the North Viking Graben area, in the event of a discovery.

The well will target an Upper Jurassic sandstone updip of a previously drilled well that found hydrocarbons.

Also as part of the agreement, Endeavour would purchase a 10% working interest in the Bacchus prospect in the northern part of Block 22/6a in the Central Graben region. The Bacchus prospect is being drilled to test the potential of a 2005 discovery well that flowed oil from Upper Jurassic sandstone.

The first slot of the drilling rig will be used to drill the Columbus prospect on Block 23/16f. This well is expected to begin drilling late this month, depending on the results of a well to be drilled beforehand by another operator.