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|2008 Capital Expenditure Budget



December 2007
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|2008 Guidance
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|2008 Capital Budget
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|Key Results of Budget
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|Potential Production Growth

Existing opportunities have potential to deliver
strong production

Future Exploration

   2007                                                                                                                                                                       2012
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|Columbus Discovery 23/16f - UK

Asset Summary

UK

Norway

Netherlands

Columbus
   Basin:   Central Graben
   Analogue field:   Everest (1.2 tcf)
   Interest:   Serica (Op)   50%
      Endeavour   25%
      EOG   25%
   Reservoir:   Forties
   Estimated reserves:   150 bcfe
   Discovery results:   Flowed 17.5 mmcfpd+1mbcpd   Flowed 17.5 mmcfpd+1mbcpd

   Appraisal wells:   23/16f-12           40' pay sands   23/16f-12           40' pay sands
      23/16f-12z         70' pay sands   23/16f-12z         70' pay sands
   File development plan:   2008
   1st production:   2009
   Note:   Stratigraphic pinchout with DHI downdip from Magellan prospect   Stratigraphic pinchout with DHI downdip from Magellan prospect

Columbus

Discovery Well

23/16f-11

23/16f

Columbus

Appraisal Wells

23/16f-12 &

23/16f-12z

Discovery wells

Legend

1 Km

END acreage
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|Cygnus Discovery 44/11 & 12 - UK

Asset Summary

Cygnus
   Basin:   Southern Gas Basin
   Analogue field:   Markham (230 bcf)
   Interest:   GdF (Op)   25%
      Endeavour   12.5%
      Tullow   35%
      E. ON Ruhrgas   27.5%
   Reservoir:   Leman and
      Carboniferous ss
   Estimated reserves:   FB1 165 bcf
   Development well:   2008
   File development plan:   2008
   1st production   2009
   Note:   44/12-2 logged gas in Leman & Carboniferous ss   44/12-2 logged gas in Leman & Carboniferous ss

44/12-1

44/12-2

Leman Sst

Carboniferous

GWC -
11313'

NNW

SSE

III

IV

IIa

IIb

I

Va

Vb

Vc

44/11

44/12

Potential horizontal

location

FBIIb Exploration

          location

Legend

1 Km

Discovery wells

Exploration location

Potential horizontal

sidetrack location

Endeavour acreage
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|Rochelle 15/27 - UK

Asset Summary

UK

Norway

Netherlands

Rochelle
   Basin:   Moray Firth
   Analogue field:   Hanny
   Interest:   Endeavour (Op)   55.6%
      Nexen   44.4%
   Reservoir:   Britannia ss
   Estimated reserves:   Proprietary
   Development:   Initiate in 2008
   1st production:   2010
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|Rochelle

50 km

Tesla

Cygnus

Aegis

Mon

Noatun C

Galtvort

Jade

  Planned participation in five wells in 2008

  Cygnus

 Rochelle

 Jade

 Brage

 Tesla



  Four potential wells



  Four emergent focus areas

  Rochelle     One discovery and a 2008 near field wildcat

 Columbus   Successful appraisal completed with two well bores

 Cygnus       One appraisal well with possible sidetrack

 Agat               One wildcat and optional sidetrack


Brage North

Red = Planned

Blue = Potential

2008 Exploration Program
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