Endeavour International said yesterday it was to review strategic alternatives for its North Sea assets.
The Houston-based company said that in an effort to unlock the value of its North Sea assets, it would study a full range of options, including selling specific assets or its entire business in the area.
Other options would be to continue with the current operations plan, or entering into a joint venture to accelerate activities in the North Sea.
Endeavour said its board, management and shareholders continued to be disappointed by the “dislocation” between underlying asset values and the company’s stock price.
Chairman William Transier said: “Last year, Endeavour sold just 19% of its reserves for £100million, which was more than the market capitalisation of the company at that time.
“Since then, our stock price has traded back to pre-sale levels even though we believe the value of our remaining asset base represents a multiple of the existing share price.
“We want our stockholders and the market to recognise the full potential of their investment. The board is committed to a thorough and systematic review of all of our North Sea alternatives.”
Endeavour owns interests in four producing fields in the UK sector of the North Sea with four developments under way.
In 2009, it shifted its strategy to include a growth initiative in the US.
In January, Endeavour unveiled a new portfolio of domestic shale plays.
The company has said earlier the £100million raised from the sale of its Norwegian subsidiary would be used to accelerate the development of four North Sea fields – the operated Rochelle field (55.6% interest), Cygnus (12.5%), Bacchus (10%) and Columbus (25%) – in addition to launching an initiative in onshore US unconventional shale resource plays.
Last month, Endeavour said its proved and probable reserves at December 31 had been assessed independently at 38.9million barrels of oil equivalent (mboe), up from 26.1mboe a year earlier.
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