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[STK] NYSE:END LSE:ENDV
[IN] OIL UTI
[SU] LAW ATY
TO BUSINESS, AND ENERGY EDITORS:
Endeavour Announces Settlement of SM Energy Litigation
HOUSTON, April 16, 2014 /PRNewswire/ -- Endeavour International
Corporation (NYSE: END) (LSE: ENDV) today announced that a settlement
has been reached with SM Energy regarding litigation filed against
Endeavour Operating Corporation in December 2011.
In July 2011, Endeavour entered into agreements with SM Energy for the
purchase of oil and gas leases, producing properties, geophysical
data, a pipeline and related assets in the Marcellus shale play in
Pennsylvania for an aggregate consideration of approximately $110
million. In December 2011, Endeavour terminated the agreements based
upon its conclusion that title defects to the properties exceeded
contractual thresholds and the pipeline was not in compliance with
regulatory standards. Late that month, SM Energy filed a lawsuit
against the Company and a counter claim was made in January 2012 by
Endeavour. On April 16, 2014 the parties reached an agreement to
settle the outstanding litigation.
In accordance with the settlement agreement, Endeavour will pay SM
Energy $5 million and issue a note for $4.5 million. The note will be
paid in three graduated payments beginning in twelve months. Endeavour
has also agreed to issue warrants valued at $3.75 million
(approximately 2.13 million shares with a strike price of $5.29.) The
total settlement expense to be recorded will be $19.25 million, which
includes deposits of $6 million paid prior to the execution of the
agreements.
Endeavour International Corporation is an oil and gas exploration and
production company focused on the acquisition, exploration and
development of oil and natural gas in the North Sea and the United
States. For more information, visit www.endeavourcorp.com .
SOURCE Endeavour International Corporation
-0- 04/16/2014
/CONTACT: Endeavour - Investor Relations, Darcey Matthews, 713-307-8711
/Web Site: http://www.endeavourcorp.com
(NYSE:END /
LSE:ENDV) /
CO: Endeavour International Corporation; SM Energy
ST: Texas
IN: OIL UTI
SU: LAW ATY
PRN
-- DA07371 --
0000 04/16/2014 22:58:00 EDT http://www.prnewswire.com
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