Oil and gas firm Endeavour International said today it remained focused on first production on two key North Sea assets.
The firm saw third-quarter production hit on its Bittern field in the North Sea and it had to pay an additional £16.3million in deferred taxes due to the surprise tax grab announced by the UK Government in March.
It also pulled out of the Alabama Devonion shale gas play, where it had spent cash exploring after a well test proved the site not economical.
However, the firm, which has offices in Queen’s Road in Aberdeen, said it was pushing ahead with its drilling programme, including three production wells on the Apache-operated Bacchus development.
It has also awarded a rig contract for the Greater Rochelle project to start drilling in Spring next year.
Production on the Bittern field, which was interrupted during August and September, restarted in October.
Endeavour is also a 20% partner on the Encore-operated Tudor Rose prospect, on which appraisal drilling is due to start this month.
The firm posted third-quarter pre-tax losses of £19.2million, compared with losses of £8.5million a year earlier. Net losses for the latest period were £40million.
Revenue at the company in the three months to September 30, 2010, totalled £6.4million – down from £12.4million for the same period last year.
William Transier, chairman and chief executive, said: “Endeavour’s results were negatively impacted by production interruptions and non-cash items related to the tax changes in the UK.
“We remain focused on turning on first production at our two key projects in the North Sea – Bacchus and Greater Rochelle.”