US-based Endeavour International is seeking bankruptcy protection after agreeing a restructuring agreement with some creditors.
The company’s debt totals about US$1.2 billion, according to Chapter 11 papers filed in US Bankruptcy Court in Wilmington, Delaware.
Endeavour says: “The filing is principally the result of a series of events during a period of time when the Company was heavily involved in the development of two large assets in the UK North Sea. In Endeavour's circumstances, its two large North Sea developments – Bacchus and Rochelle, were each over a year delayed in coming to first production, which caused cost overruns from the original cost projections. These delays also substantially impacted the cash flow and operating margins the company would have received had the projects come online as scheduled. To maintain its ownership rights in these valuable assets, Endeavour incurred additional debt at a high cost of capital. As of the filing, the large capital commitment for most of the North Sea assets has been completed and the assets are online.”
Last week, the firm appointed a restructuring officer, in connection with appointing a consultancy firm, to assist the company in its financial restructuring.
William L. Transier, chairman, chief executive officer and president at Endeavour said: "It has been a significant accomplishment by the Company and a very long process to get our North Sea developments online. We continue to believe that these are quality long lived assets that can generate substantial returns for the Company's stakeholders. The RSA and ensuing reorganization process is important to the preservation of these assets for our investors."
The main case is In re Endeavour Operating Corp., 14-12308, U.S. Bankruptcy Court, District of Delaware (Wilmington).
Endeavour was founded in early 2004. It has five producing assets in the UK - Alba, Rochelle, Bacchus, Bittern and Enoch. In the US, the company has gas production in the Louisiana Haynesville and the Pennsylvania Marcellus and is evaluating its liquids-rich frontier plays in Colorado and Montana.
Read more: Endeavour appoints restructuring officer