1112412--3/15/2007--ENDEAVOUR_INTERNATIONAL

related topics

{gas, price, oil}

{stock, price, share}

{loss, insurance, financial}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{cost, contract, operation}

{financial, litigation, operation}

{operation, international, foreign}

{personnel, key, retain}

{tax, income, asset}

{acquisition, growth, future}

{investment, property, distribution}

{condition, economic, financial}

Because we have a limited operating history in the North Sea, you may not be able to evaluate our current business and future earnings prospects accurately. Our ability to produce commercial quantities of oil and gas from our properties may be adversely affected by factors outside of our control. If we are unable to produce oil and gas from our properties in commercial quantities, our operations will be severely affected. We may not be able to replace production with new reserves which could cause our production and reserves to decline. We have limited control over the availability or cost of drilling rigs and other equipment and services which are essential to our operations, and market conditions or transportation impediments may hinder access to oil and gas markets or delay production. Our debt level could negatively impact our financial condition, results of operations and business prospects. Variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly. We will not be the operator of all of the interests we own or acquire, and therefore we may not be in a position to control the timing of development efforts, the associated costs, or the rate of production of the reserves in respect of such interests. If we are unable to obtain additional financing or generate sufficient operating cash flow, we may not be able to adequately fund our existing development and exploration projects, acquire additional oil and gas interests, or maintain our rights in such projects. Competition for oil and gas properties and prospects is intense and some of our competitors have larger financial, technical and personnel resources that give them an advantage in evaluating, obtaining and developing properties and prospects. If we are unable to identify additional oil and gas prospects in which we can acquire an interest at an affordable price, we may not be able to grow successfully. Acquiring interests in properties for oil and natural gas exploration is speculative in nature and may not ever result in operating revenues or profits. We face risks associated with our acquisition strategy. Market fluctuations in the prices of oil and gas could adversely affect the price at which we can sell oil or gas discovered on our properties, and lower oil and gas prices may cause us to record ceiling test write-downs. Our results of operations could be adversely affected by goodwill impairments. Derivative transactions may limit our potential gains and involve other risks. The use of 3-D seismic is only an interpretive tool and we may be unable to recognize significant geological features. We operate internationally and are subject to political, economic and other uncertainties. Our insurance may not protect us against business and operating risks, including the potential that an operator of a prospect in which we participate may fail to maintain or obtain adequate insurance. The cost of decommissioning is uncertain. Reserve estimates depend on many assumptions that may turn out to be inaccurate and any material inaccuracies in the reserve estimates or underlying assumptions of our assets will materially affect the quantities and present value of those reserves. If we are unable to fulfill commitments under any of our licenses, we will lose our interest, and our entire investment, in such license. We are subject to environmental regulations that can have a significant impact on our operations. Governmental regulations to which we are subject could expose us to significant fines and/or penalties and our cost of compliance with such regulations could be substantial. We are dependent on our executive officers and need to attract and retain additional qualified personnel. We are unable to predict the outcome of the pending SEC investigation. Risks relating to our common stock The trading price of our common stock may be volatile. There is a limited market for our common stock. If we, our existing stockholders or holders of our securities that are convertible into shares of our common stock sell additional shares of our common stock, the market price of our common stock could decline.

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1112412--3/15/2007--ENDEAVOUR_INTERNATIONAL_CORP