1112412--3/16/2010--ENDEAVOUR_INTERNATIONAL

related topics

{gas, price, oil}

{loss, insurance, financial}

{cost, regulation, environmental}

{stock, price, share}

{acquisition, growth, future}

{capital, credit, financial}

{debt, indebtedness, cash}

{provision, law, control}

{regulation, change, law}

{personnel, key, retain}

{operation, natural, condition}

{operation, international, foreign}

{cost, contract, operation}

{condition, economic, financial}

{cost, operation, labor}

Risks related to our business We operate internationally and are subject to political, economic and other uncertainties. Future economic conditions in the U.S. and key international markets may materially adversely impact our operating results, which could hinder or prevent us from meeting our future capital needs. Oil and gas prices are volatile, and a decline in oil and gas prices would reduce our revenues, profitability and cash flow and impede our growth. 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. We are dependent on our executive officers and need to attract and retain additional qualified personnel. Our use of derivative transactions may limit future revenues from price increases and involves the risk that our counterparties may be unable to satisfy their obligations to us. Risks related to executing our strategy and operations To maintain and grow our production and cash flow, we must continue to develop and produce existing reserves and discover or acquire new oil and gas reserves to develop and produce. We may be unable to make attractive acquisitions, and any acquisition we complete is subject to substantial risks that could impact our business. Our expectations for future drilling activities will be realized over several years, making them susceptible to uncertainties that could materially alter the occurrence or timing. Our drilling projects are based in part on seismic data, which cannot ensure the commercial success of the project. 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. A significant portion of our total estimated net proved reserves at December 31, 2009 were undeveloped, and those reserves may not ultimately be developed. Our offshore operations involve special risks that could increase our cost of operations and adversely affect our ability to produce oil and gas. We have recently commenced exploration, production and development operations in the United States, and as a result, our ability to successfully achieve our goals is subject to greater risk and uncertainty. 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. Actual production could differ significantly from forecasts. Our insurance may not protect us against business and operating risks, including an operator of a prospect in which we participate failing to maintain or obtain adequate insurance. The cost of decommissioning is uncertain. Risks related to environmental and other regulations 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. Federal legislation and state legislative regulatory initiatives relating to hydraulic fracturing could result in increased costs and additional operating restrictions or delays as well as adversely affect our support services. Climate change legislation or regulations restricting emissions of greenhouse gases could result in increased operating costs and reduced demand for the crude oil and natural gas that we produce. The adoption of derivatives legislation by the U.S. Congress could have an adverse impact on our ability to hedge risks associated with our business. Certain federal income tax deductions currently available with respect to oil and natural gas exploration and development may be eliminated as a result of future legislation. Risks related to access to capital and financing Our development and exploration operations, including our recent North Sea discoveries, require substantial capital, and we may be unable to obtain needed capital or financing on satisfactory terms, which could lead to a loss of properties and a decline in our oil and gas reserves. Our debt level could negatively impact our financial condition, results of operations and business prospects. A change of control may adversely affect our liquidity and require refinancing of certain debt instruments. If we are unable to fulfill commitments under any of our oil and gas interests, we will lose our interest, and our entire investment, in such interest. Risks relating to our common stock The trading price of our common stock may be volatile. 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 significantly decline. Provisions in our articles of incorporation, bylaws and the Nevada Revised Statutes may discourage a change of control. Risks related to potential impairments Lower oil and gas prices and other factors resulted in a ceiling test write-down and may in the future result in additional ceiling test write-downs or other impairments.

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1112412--3/16/2010--ENDEAVOUR_INTERNATIONAL_CORP