HOUSTON – Houston oil explorer Endeavour International Corp. struck an encouraging note Wednesday in the midst of early bankruptcy proceedings: One of its biggest oil fields in the U.K. North Sea is back online.
Endeavor, which filed for Chapter 11 bankruptcy protection on Friday, said its Rochelle field began pumping oil and gas again on Oct. 12 after production had been stopped last month for repairs. The field, in which Endeavour has a 44 percent non-operated stake, is currently pumping 90 million cubic feet of gas per day, along with about 4,600 barrels of associated liquids a day, Endeavour said.
Endeavour has lost hundreds of millions in revenue over the past three years as the rough waters around the United Kingdom have taken a toll on the company’s offshore equipment and the timing of its income. Oil production has been delayed or intermittently disrupted at its three biggest fields in the North Sea, which account for most of its cash flow.
Its struggle to bring its oil fields into production, along with rising debt and other costs, drove the company to file for bankruptcy protection late last week. It struck a deal with two thirds of its creditors to reduce its $1.2 billion in debt by $568 million, but said its shares are cancelled. Endeavour CEO William Transier has said in legal documents bankruptcy protection is key to maintaining its ownership of its main North Sea assets.
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