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| END > SEC Filings for END > Form 8-K on 11-Jan-2010 | All Recent SEC Filings |
11-Jan-2010
Entry into a Material Definitive Agreement
JW Purchase Agreement
On January 6, 2009, Endeavour Operating Corporation ("Endeavour"), a wholly-owned subsidiary of Endeavour International Corporation, completed the acquisition of interests in the Haynesville and Marcellus shale plays (the "JW Acquisition") through entry into a Purchase Agreement, effective November 1, 2009, with Cohort Energy Company ("Cohort"), a subsidiary of J-W Operating Company, and Endeavour (the "JW Purchase Agreement"). Under the terms and conditions of the JW Purchase Agreement, Endeavour acquired 50% of Cohort's working interest in certain oil and gas leases covering approximately 66,000 gross (27,000 net) acres in North Louisiana/East Texas and Western Pennsylvania (the "JW Project Area") for an initial purchase price of $15,000,0000.
JW Participation Agreement
In connection with closing of the JW Acquisition, Endeavour also entered into a Participation Agreement, effective November 1, 2009, with Cohort (the "JW Participation Agreement").
Under the terms and conditions of the JW Participation Agreement, Endeavour entered into a joint venture with Cohort to develop the JW Project Area (the "JW Joint Venture"). For a period of forty-eight months beginning on November 1, 2009, Endeavour granted Cohort the exclusive right to propose new wells for development by the JW Joint Venture (the "JW Exclusivity Period") and agreed to pay certain costs and expenses incurred in connection with the drilling and completion of all wells during the JW Exclusivity Period, subject to certain limitations. Once these obligations cease, Endeavour and Cohort will share all costs of the JW Joint Venture operations within the area of mutual interest (including the JW Project Area) in accordance with their participation interests, which are expected to be on a 50/50 basis.
The JW Participation Agreement provides that Cohort will serve as operator for all of the JW Joint Venture's wells in the JW Project Area.
Hillwood Purchase and Sale and Participation Agreement
On January 6, 2009, Endeavour closed on the Purchase and Sale and Participation Agreement (the "Hillwood Agreement") with Hillwood Energy Alabama LP ("Hillwood"). Under the terms and conditions of the Hillwood Agreement, effective November 10, 2009, Endeavour acquired 50% of Hillwood's working interest in certain oil and gas leases covering approximately 160,000 gross acres (63,000 net acres) in Alabama (the "Hillwood Project Area") for an initial purchase price of approximately $7,500,0000.
In addition, Endeavour also entered into a joint venture with Hillwood to develop the Hillwood Project Area (the "Hillwood Joint Venture"). The Hillwood Agreement provides that Endeavour will bear certain costs and expenses incurred in the drilling and completion of wells jointly drilled in the Hillwood Project Area, subject to certain limitations. Once such obligations have ceased, Endeavour and Hillwood will share all costs of the Hillwood Joint Venture operations within an area of mutual interest (including the Hillwood Project Area) in accordance with their participation interests which are expected to be on a 50/50 basis.
The Hillwood Agreement provides that Hillwood will serve as operator of the Hillwood Project Area.
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