Endeavour Gushing 23% Higher after Asset Purchase from ConocoPhilips

Shares of Endeavour International END are trading higher by 23% on Tuesday. Endeavour Energy UK Limited announced this morning that it has entered into a purchase and sale agreement to acquire ConocoPhillips' COP interest in three producing U.K. oil fields in the Central North Sea for $330 million , including approximately $94 million of tax attributes. Endeavour will acquire a 23.4% interest in the Alba field, which is currently operated by Chevron CVX. The company will also gain a 40% interest in the MacCulloch field and an 18% stake in the Nicol field. Commenting on the events, CEO of Endeavour, William L. Transier said, "This acquisition increases our current ownership interest in the Alba Field, a late Eocene reservoir that has been producing since 1994. Additionally, we add ownership interests in the MacCulloch and Nicol fields. We believe these fields have valuable upside potential." He continued, "The production from these Central North Sea fields is almost 100% oil, which will generate a large increase in cash flow to Endeavour and provides a mechanism to accelerate the recognition of our current U.K. tax benefits of almost $300 million after this acquisition. This transaction, which our team has been working on since the beginning of this year, adds significantly to our two existing U.K. development projects, which are estimated to start production during 2012. Upon completion of this transaction and after the start-up of Bacchus and the Greater Rochelle development projects, Endeavour will become one of the largest independent producers in the U.K. North Sea." Obviously investors believe these assets will help the company as shares are performing well in a low-volume holiday week. Currently, shares are trading up over 23% at $7.90.