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
