The investment will take the form of a convertible note and is expected to close in mid-January of 2008, upon completion of required consents and approvals.
The convertible notes, due January 2014, will have an initial conversion price of $2.36 and carry a coupon of 11.5%. The coupon will not be paid in cash, but will accrue and be convertible into common shares at the conversion price.
William Transier, chairman, president and CEO of Endeavour, said: It is a significant vote of confidence for the Smedvig family to make this investment in our management team and company. Peter Smedvig is an extremely well-respected operator and investor in the energy industry and we are excited about the growth potential he sees in Endeavour.
