Endev Energy Inc.
TSX : ENE

Endev Energy Inc.

March 06, 2008 18:26 ET

Endev Energy Inc. Announces 2007 Fourth Quarter and Year-End Results

CALGARY, ALBERTA--(Marketwire - March 6, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

(All amounts are in Canadian dollars unless stated otherwise)

Endev Energy Inc. (TSX:ENE) is pleased to announce financial and operating results for the three months and year ending December 31, 2007.

In 2007, Endev advanced a growth strategy to diversify its asset base to include medium and higher risk prospects which complement the Company's lower risk shallow gas assets. The program is already delivering positive results.

Highlights of the year include:

- Replaced 105 percent of produced reserves at a finding and development cost, including changes in future capital, of $18.77 per boe on a proved plus probable basis by spending $24.4 million or 72 percent of cash flow on capital expenditures, resulting in a reduction in net debt of $9 million to $45.2 million;

- Drilled 31 (net 30) wells for a casing success rate of 87 percent;

- Grew average annual production to 4,021 boe/d, a seven percent increase from the prior year;

- Acquired 9,000 net acres in a fairway west of the fifth meridian (W5) with deeper gas potential;

- Drilled two deep gas wells in the W5 fairway in 2007 and a third in Q1, 2008 with all three cased for natural gas;

- Added productive capacity based on test rates of 1,000 boe/d from Q4, 2007 wells most of which awaits tie-in, as only 400 boe/d was on stream as of the end of February;

- Early Q1, 2008 drilling adding productive capacity based on test rates of 800 boe/d awaiting tie-in.




HIGHLIGHTS Three months ended Year ended
December 31 December 31
% %
2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Financial
($000s, except per share
amounts)
Gross revenue 15,995 17,148 (7) 67,768 61,129 11
Funds from operations 7,388 9,134 (20) 34,108 32,695 4
Basic per share 0.08 0.10 (20) 0.38 0.37 3
Diluted per share 0.08 0.10 (20) 0.38 0.36 6
Net income (loss) (262) (634) - (10,800) 2,679 -
Basic per share - (0.01) - (0.12) 0.03 -
Diluted per share - (0.01) - (0.12) 0.03 -
Capital expenditures, net 5,069 14,948 (66) 24,424 59,472 (59)
Net debt (1) 45,172 54,746 (17) 45,172 54,746 (17)

Operations
Daily production
Natural gas (mcf) 17,586 19,528 (10) 18,328 18,006 2
Natural gas liquids (bbl) 66 111 (41) 70 84 (17)
Crude oil (bbl) 862 772 12 897 679 32
Total daily production (boe
@ 6:1) 3,859 4,138 (7) 4,021 3,764 7
Average sales price (2)
Natural gas ($/mcf) 6.13 7.03 (13) 6.69 6.65 1
Natural gas liquids ($/bbl) 71.47 51.87 38 62.45 55.43 13
Crude oil ($/bbl) 70.12 56.04 25 67.19 63.31 6
Netback per boe (6:1) ($)
Petroleum and natural gas
revenues 44.84 45.04 - 46.53 44.49 5
Royalties, net of ARTC 7.50 6.19 21 7.99 6.96 15
Operating expenses 10.66 9.11 17 9.38 8.84 6
Transportation 1.04 0.97 7 1.10 0.95 16
Operating netback 25.64 28.77 (11) 28.06 27.74 1

(1) Excluding unrealized gains and losses on commodity contracts.
(2) Including realized gains and losses on commodity contracts.


PRESIDENT'S MESSAGE

Overview - Diversifying our asset mix

In 2007, Endev moved to the next stage of a growth strategy that set a new tone and direction for the Company. Our objective was to develop a broader scope of opportunities that would see Endev combine its extensive base of lower risk shallow gas operations with deeper gas and oil by adding both medium risk and higher risk drilling prospects to our asset mix. The medium risk component of the strategy was initiated in 2006 with the drilling of Cretaceous - Mannville oil and gas wells in the Majorville area. In 2007 we completed the foundation for this strategy by providing the third leg of the strategy - a higher risk drilling program to complement our low risk shallow gas play and growing inventory of medium risk wells.

To implement the higher risk component, we targeted two areas in a fairway west of the fifth meridian in Alberta (W5) where we saw deeper gas potential in the Cretaceous to Mississippian age rocks. We acquired approximately 9,000 net acres of mineral rights in these areas. In the fourth quarter of 2007 Endev drilled two deep gas wells and participated in a third non-operated well in early 2008 in this fairway. We are very pleased with the early results from this program and expect to have one of these wells on production by the end of the first quarter. While these wells are more expensive to drill and present more technical risk, these factors are more than offset by the potential for larger production rates and reserve additions. Success in these areas could provide us with a step change in the Company's growth rate, something we are excited about.

Over the year, revenue and cash flow increased primarily due to increased oil and gas production. Gross revenues were $67.8 million as compared to $61.1 million a year earlier, an increase of 11 percent. Funds from operations increased by four percent to $34.1 million compared to $32.7 million in the prior year. Net income was a loss of $10.8 million as compared to last year's net income of $2.7 million, principally due to the write down of goodwill earlier in the year combined with higher depletion costs.

Drilling Program

In 2007 Endev drilled a total of 31 gross (30 net) wells and continued our strong casing success rate of 87 percent. While our initial 2007 budget plans called for drilling 105 wells, given the environment of high service costs and low natural gas prices early in the year we opted to reduce our shallow gas drilling activity and refocus our capital on medium and higher risk wells with greater potential. This shift in focus to more economically attractive investments clearly demonstrates the strategic value of Endev's broader asset portfolio.

Our Mannville drilling program continues to be successful, with production growing 124 percent, to average 937 boe/d for the year. Our fourth quarter drilling program was the most successful to date with new wells from all areas adding net productive capacity, based on well production tests of 1,000 boe/d. Our drilling success has continued into the first quarter of 2008 with the first four wells adding productive capacity of 800 boe/d. Current infrastructure limits the amount of production brought on stream to 400 boe/d during the first quarter of 2008. New pipeline infrastructure planned for the second quarter, subject to field access conditions, will allow more of this production to come on-stream from those wells and from new wells drilled in the first quarter of 2008. Endev completed a water flood feasibility study aimed at maximizing recovery from a 2006 light oil discovery at Majorville which resulted in the addition of approximately 500,000 boe of recoverable light oil reserves. We further enhanced our Mannville opportunity inventory by acquiring 6,000 net acres at Crown land sales and accessing 5,800 gross acres through farm-ins of mineral rights during the year at Majorville.

Results of Operations

Endev's average production for the year was 4,021 boe per day, a seven percent increase over the prior year and somewhat lower than our most recent guidance of 4,100 boe per day. Although fourth quarter production of 3,859 boe per day was lower than planned due to the delay in pipeline completion, we are pleased that the productive capacity that has been added will begin to come on stream in the first half of 2008. We expect the first quarter production to average less than that of the prior quarter before increasing near the end of the quarter as we begin to bring on new production.

Company interest (excluding royalty interests) reserve additions in 2007 added approximately 1.5 million boe of proved plus probable reserves, which replaced 105 percent of our yearly production at a total capital cost of $24.4 million. At year end, Company interest reserves were estimated by our independent reserves evaluator at 6.6 million barrels of oil equivalent (boe) total proved and 9.7 million boe on a total proved plus probable basis. We replaced our reserves at a cost of $22.81 per boe on a total proved basis and $18.77 on a proved plus probable basis, including changes to future development capital. We are particularly pleased with the capital efficiency we achieved. The focused approach to capital expenditures during 2007 also provided a strong financial base for Endev as we enter 2008 with debt reduced by over $9 million and a net debt to cash flow ratio of 1.3 times 2007 cash flow.

Net Asset Value

Endev's reserves report from the Company's independent reserves evaluators indicated a net present value of the reserves under the current royalty regime of $153.5 million on a proved plus probable basis when discounted at 10 percent before tax. Under the proposed royalty framework in Alberta, the value increases to range from a low of $154.2 million to a high of $155.1 million. Endev's net asset value per share based upon these reserves values, year end net debt of $45.2 million, undeveloped land of 98,000 acres valued at $125. per acre and 89.0 million basic shares outstanding is approximately $1.35 per share.

Outlook

Endev has a healthy balance sheet with a strong base of cash flow from our core production area in Southern Alberta, as well as a large inventory of opportunities for future drilling. The strength of our asset base is rooted in our high working interest, long-life core areas and our large contiguous tracts of land bolstered by our significant ownership of infrastructure. We broadened our investment base during the year by allocating capital expenditures to more profitable, larger impact drilling prospects.

We will continue to build on our successes. Our plans for 2008 include a capital expenditure program of $38 million and the drilling of 36 wells (31 net) in our medium and higher risk programs. In setting production targets for 2008 we have factored in the delayed start of production from the 2007, fourth quarter wells. We have also factored in additions from the planned medium risk and higher risk wells, and based on those assumptions, we are estimating average daily production of 4,300 to 4,500 boe per day for 2008.

We are very pleased with the results of our 2007 program and with the early results of the 2008 program. We have benefited from continued success in the medium risk program and we are excited about our drilling results from our first wells in the higher risk component of our strategy. As we move through 2008, we look forward to putting on stream the production from those recent wells as well as that from wells yet to be drilled. With our solid balance sheet and healthy cash flow, Endev is in a strong position to execute our strategy and to capture new opportunities.

On behalf of the Board of Directors,

Cameron MacGillivray, President & Chief Executive Officer

March 6, 2008

RESERVES SUMMARY

Endev received the results of an independent engineering evaluation of its oil and gas reserves conducted by GLJ Petroleum Consultants Ltd. (GLJ) effective December 31, 2007. This evaluation was prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101). This instrument, which was adopted by the Canadian Securities Administrators, sets out standards of disclosure for oil and gas activities and mandates the application of evaluation standards defined in the Society of Petroleum Evaluation Engineers (SPEE) Canadian Oil and Gas Evaluation Handbook (COGEH).

In 2007 Endev was successful in more than replacing its actual production for the year by adding 1,531 Mboe of Company gross (working interest only) proved plus probable reserves. Endev added 1,094 Mboe by drilling extensions and new discoveries and another 654 Mboe through improved recovery. Negative technical revisions, primarily associated with the Company's shallow gas properties, totaled 217 Mboe. The drilling additions are mostly attributable to the Company's drilling successes in southeast Alberta at Majorville and Bantry, which targeted Mannville oil and gas, in west central Alberta at Carstairs and in southwest Saskatchewan at Admiral. The improved recovery reserves are largely associated with a waterflood that Endev plans to implement in 2008 within one of its Majorville Mannville light oil pools.

In response to the ongoing challenges facing shallow gas development, Endev continued its diversification strategy in 2007. The Company concentrated much of its 2007 efforts on the exploration and development of deeper geologic targets, specifically the Mannville horizon. The success of that strategy is clearly evidenced by the above-mentioned reserves increases.

Our finding and development costs (excluding acquisitions and dispositions) were $18.77 per boe of proved plus probable reserves, including changes in future capital. Our finding and development costs were $22.81 per boe of total proved reserves, including changes in future capital.

Highlights from the reserves report include:

- Total Company reserves (working interests and royalty interests) are 6,706 Mboe total proved and 9,843 Mboe total proved plus probable.

- Gross Company reserves (working interests only) are 6,605 Mboe total proved and 9,668 Mboe total proved plus probable.

- In 2007 development activity added 1,101 Mboe of total proved reserves and 1,748 Mboe of total proved plus probable reserves.

- The net present value of the total proved plus probable reserves is $153.5 million, discounted at 10 percent, forecast prices, before tax.

- Endev's holdings outside of the Majorville shallow gas assets currently account for approximately 50 percent of the total proved plus probable reserves. That compares to 42 percent in 2006 and shows the impact of Endev diversifying its reserves portfolio by placing less and less reliance on shallow gas over time.

- Applying the average 2008 production rates for each reserves category to the December 31, 2007 reserves volumes yields reserve life index figures of 4.9 years for proved developed producing, 5.5 years for total proved and 7.6 years proved plus probable.



SUMMARY OF OIL AND GAS RESERVES
FORECAST PRICES AND COSTS
As at December 31, 2007

Light And Medium Oil Heavy Oil Natural Gas
---------------------- ----------------- ---------------
Gross Net Gross Net Gross Net
Reserves Category Mbbls Mbbls Mbbls Mbbls MMcf MMcf
----------------- ----------- ------- ------- ------- ------ ------

Proved
Developed Producing 936 844 65 49 25,871 22,166
Developed
Non-Producing 6 5 - - 2,852 2,103
Undeveloped 219 191 - - 2,006 1,733
----------------- ----------- ------- ------- ------- ------ ------
Total Proved 1,161 1,041 65 49 30,729 26,002

Probable 559 516 21 15 14,152 12,095
----------------- ----------- ------- ------- ------- ------ ------

Total Proved
Plus Probable 1,720 1,557 85 64 44,881 38,097
----------------- ----------- ------- ------- ------- ------ ------
----------------- ----------- ------- ------- ------- ------ ------


Natural Gas Liquids Total Oil Equivalent
--------------------- ----------------------
Gross Net Gross Net
Reserves Category Mbbls Mbbls Mbbls Mbbls
------------------ ------- ------- ------- -------

Proved
Developed Producing 151 107 5,464 4,694
Developed Non-Producing 97 66 578 421
Undeveloped 8 6 562 486
------------------ ------- ------- ------- -------
Total Proved 257 179 6,604 5,602

Probable 126 91 3,064 2,638
------------------ ------- ------- ------- -------

Total Proved Plus Probable 383 270 9,668 8,240
------------------ ------- ------- ------- -------
------------------ ------- ------- ------- -------

Note: Columns may not add due to rounding.


NET PRESENT VALUES OF FUTURE NET REVENUE
FORECAST PRICES AND COSTS
As at December 31, 2007
($ thousands, except as noted)

Before Income Taxes Discounted at (%/year)
-----------------------------------------------------
Reserves
Category 0 5 10 15 20
---------- --------- --------- --------- --------- ---------

Proved
Developed Producing 140,906 118,689 103,427 92,161 83,465
Developed
Non-Producing 13,439 10,605 8,692 7,322 6,295
Undeveloped 10,212 5,887 3,196 1,424 207
--------- --------- --------- --------- ---------
Total Proved 164,557 135,182 115,314 100,906 89,967

Probable 84,595 54,321 38,173 28,507 22,234
--------- --------- --------- --------- ---------

Total Proved Plus
Probable 249,152 189,503 153,487 129,413 112,201
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------


Unit Value
Before Income
Tax Discounted
After Income Taxes Discounted at (%/year) at 10%/year
------------------------------------------ --------------
Reserves
Category 0 5 10 15 20 ($/boe)
---------- ------- -------- -------- -------- -------- --------

Proved
Developed
Producing 131,850 111,342 97,300 86,941 78,940 22.03
Developed
Non-Producing 9,843 7,690 6,241 5,209 4,441 20.64
Undeveloped 7,654 4,094 1,876 416 (585) 6.57
---------- ------- -------- -------- -------- -------- --------
Total Proved 149,347 123,126 105,417 92,566 82,796 20.59

Probable 62,764 39,929 27,764 20,506 15,819 14.47
---------- ------- -------- -------- -------- -------- --------

Total Proved Plus
Probable 212,111 163,055 133,181 113,072 98,614 18.63
---------- ------- -------- -------- -------- -------- --------
---------- ------- -------- -------- -------- -------- --------

Note: Columns may not add due to rounding.


TOTAL FUTURE NET REVENUE (UNDISCOUNTED)
FORECAST PRICES AND COSTS
As at December 31, 2007
($ millions)

Capital
Operating Development
Reserves Category Revenue Royalties Costs Costs
------------------ --------- ----------- ---------- -------------
Total Proved
Reserves 348.2 46.2 106.7 15.1

Total Proved Plus
Probable Reserves 524.4 72.2 157.8 27.1


Future Future
Net Net
Abandonment Revenue Revenue
and Before After
Reclamation Income Income Income
Reserves Category Costs Taxes Taxes Taxes
------------------ --------- ----------- ---------- -------------
Total Proved
Reserves 15.6 164.5 15.2 149.4

Total Proved Plus
Probable Reserves 18.1 249.2 37.0 212.1


FUTURE NET REVENUE BY PRODUCTION GROUP
FORECAST PRICES AND COSTS
As at December 31, 2007

($ thousands, except as noted)

Future Net
Revenue
Before Income
Taxes(1)
Reserves (discounted at Unit Value
Category Production Group 10%/year) ($/boe)
--------------- ------------------------------ ---------------- -----------
Proved Reserves Light and Medium Crude Oil
(including solution gas and
other by-products) 34,150 27.26
Heavy Oil (including solution
gas and other by-products) 645 13.30
Natural Gas (including
by-products but excluding
solution gas) 80,349 18.72
Non-Conventional Oil and Gas
Activities 126 21.71
----------------------------
Total 115,314 20.59
----------------------------
----------------------------

Proved Plus
Probable
Reserves Light and Medium Crude Oil
(including solution gas and
other by-products) 47,240 25.14
Heavy Oil (including solution
gas and other by-products) 825 12.89
Natural Gas (including
by-products but excluding
solution gas) 105,270 16.74
Non-Conventional Oil and Gas
Activities 153 19.50
----------------------------
Total 153,487 18.63
----------------------------
----------------------------

Note: Columns may not add due to rounding.
(1) Other company revenue and costs not related to a specific production
group have been allocated proportionately to production groups.


SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS
FORECAST PRICES AND COSTS
As at December 31, 2007

NATURAL
OIL GAS
------------------------------------------------------- ----------
Lloyd
Edmonton Blend Cromer
WTI Par Price Stream Medium AECO Gas
Cushing 40 degrees Quality at 29.3 degrees Price
Oklahoma API Hardisty API ($Cdn/MM
Year ($US/Bbl) ($Cdn/Bbl) ($Cdn/Bbl) ($Cdn/Bbl) BTU)
----- ------------ ------------- ------------- ------------ ---------

Forecast
2008 92.00 91.10 63.77 79.26 6.75
2009 88.00 87.10 60.97 75.78 7.55
2010 84.00 83.10 58.17 72.30 7.60
2011 82.00 81.10 56.77 70.56 7.60
2012 82.00 81.10 56.77 70.56 7.60
2013 82.00 81.10 57.58 70.56 7.60
2014 82.00 81.10 58.39 70.56 7.80
2015 82.00 81.10 59.20 70.56 7.97
2016 82.02 81.12 60.03 70.57 8.14
2017 83.66 82.76 61.24 72.00 8.31
2018 85.33 84.42 62.47 73.44 8.48
Thereafter +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr


NATURAL GAS LIQUIDS
----------------------------------------
Edmonton Edmonton Edmonton Inflation Exchange
Butane Propane Pentanes Plus Rates(1) Rate(2)
Year ($Cdn/Bbl) ($Cdn/Bbl) (Cdn/Bbl) (%/Year) ($US/$Cdn)
----- ------------ ------------- ------------- ------------ ---------

Forecast
2008 72.88 58.30 92.92 2.0 1.000
2009 69.68 55.74 88.84 2.0 1.000
2010 66.48 53.18 84.76 2.0 1.000
2011 64.88 51.90 82.72 2.0 1.000
2012 64.88 51.90 82.72 2.0 1.000
2013 64.88 51.90 82.72 2.0 1.000
2014 64.88 51.90 82.72 2.0 1.000
2015 64.88 51.90 82.72 2.0 1.000
2016 64.89 51.91 82.74 2.0 1.000
2017 66.21 52.97 84.42 2.0 1.000
2018 67.53 54.03 86.11 2.0 1.000
Thereafter +2.0%/yr +2.0%/yr +2.0%/yr 2.0%/yr 1.000

Notes:
Inflation rates for forecasting prices and costs.
Exchange rates used to generate the benchmark reference prices in this
table.


RECONCILIATION OF GROSS RESERVES BY PRINCIPAL PRODUCT TYPE
FORECAST PRICES AND COSTS
As at December 31, 2007

Light
and
Medium Natural
Crude Heavy Conventional Unconventional Gas
Oil Oil Natural Gas Natural Gas Liquids Total
(Mbbl) (Mbbl) (Mmcf) (Mmcf) (Mbbl) (Mboe)
----------------------------------------------------------------------------
Company Gross
Proved
Opening
balance -
December 31,
2006 1,040 37 32,682 - 209 6,733
Extensions 72 46 2,143 - 71 546
Improved
Recovery 216 - 862 39 19 385
Technical
Revisions 139 (6) 735 - (41) 214
Discoveries - - 876 - 24 170
Acquisitions - - - - - -
Dispositions (2) - (3) - - (3)
Economic
Factors 10 - - - - 10
Production (313) (12) (6,604) (1) (25) (1,451)
----------------------------------------------------------------------------
Closing
balance -
December 31,
2007 1,161 65 30,691 38 257 6,605
----------------------------------------------------------------------------

Company Gross
Probable
Opening
balance -
December 31,
2006 395 8 14,250 - 80 2,858
Extensions 22 14 1,662 - 49 361
Improved
Recovery 212 - 279 14 9 269
Technical
Revisions (73) (2) (2,138) - (14) (445)
Discoveries - - 86 - 2 17
Acquisitions - - - - - -
Dispositions (1) - (1) - - (1)
Economic
Factors 4 - - - - 4
Production - - - - - -
----------------------------------------------------------------------------
Closing
balance -
December 31,
2007 559 20 14,139 14 126 3,063
----------------------------------------------------------------------------

Company Gross
Proved plus
Probable
Opening
balance -
December 31,
2006 1,435 45 46,932 - 289 9,591
Extensions 94 60 3,805 - 120 907
Improved
Recovery 427 - 1,141 53 28 654
Technical
Revisions 66 (8) (1,404) - (55) (231)
Discoveries - - 963 - 27 187
Acquisitions - - - - - -
Dispositions (3) - (4) - - (4)
Economic
Factors 14 - - - - 14
Production (313) (12) (6,604) (1) (25) (1,451)
----------------------------------------------------------------------------
Closing
balance -
December 31,
2007 1,720 85 44,829 52 383 9,668
----------------------------------------------------------------------------

Note: Columns may not add due to rounding.


FINDING, DEVELOPMENT AND ACQUISITION COSTS (1)

2007 2006
Proved Proved
plus plus
($000s) except as noted Proved Probable Proved Probable
----------------------------------------------------------------------------
Total exploration and development
costs incurred 24,369 24,369 59,256 59,256

Change in future development costs 5,629 4,108 (9,918) (14,917)
----------------------------------------------------------------------------
Total exploration and development
costs for F&D 29,998 28,477 49,338 44,339

----------------------------------------------------------------------------
Reserve additions, excluding
acquisitions/dispositions (mboe) 1,315 1,517 432 (58)

Average finding and development costs
per boe $22.81 $18.77 $114.21 N/A
----------------------------------------------------------------------------

Acquisition expenditures - - - -
Reserve additions, from acquisitions
(mboe) - - - -

Average acquisition costs per boe N/A N/A N/A N/A
----------------------------------------------------------------------------
Total finding, development and
acquisition costs (FD&A) 29,998 28,477 49,338 44,339

Reserve additions for finding,
development and acquisition costs
(mboe) 1,315 1,517 432 (58)
Average finding, development and
acquisition costs per boe $22.81 $18.77 $114.21 N/A
----------------------------------------------------------------------------


3 Year
2005 Total/Average
Proved Proved
plus plus
($000s) except as noted Proved Probable Proved Probable
----------------------------------------------------------------------------
Total exploration and development
costs incurred 36,191 36,191 119,816 119,816

Change in future development costs 17,444 5,228 13,155 (5,581)
----------------------------------------------------------------------------
Total exploration and development
costs for F&D 53,635 41,420 132,971 114,236

----------------------------------------------------------------------------
Reserve additions, excluding
acquisitions/dispositions (mboe) 2,550 612 4,297 2,071

Average finding and development costs
per boe $21.03 $67.68 $30.95 $55.16
----------------------------------------------------------------------------

Acquisition expenditures 4,101 4,101 4,101 4,101
Reserve additions, from acquisitions
(mboe) 216 407 216 407

Average acquisition costs per boe $18.99 $10.08 $18.99 $10.08
----------------------------------------------------------------------------
Total finding, development and
acquisition costs (FD&A) 57,736 45,521 137,072 118,337

Reserve additions for finding,
development and acquisition costs
(mboe) 2,766 1,019 4,513 2,478
Average finding, development and
acquisition costs per boe $20.87 $44.67 $30.37 $47.76
----------------------------------------------------------------------------

Note: Columns may not add due to rounding.

(1) Reserves and future development costs are based on forecast prices and
costs evaluation.


MANAGEMENT'S DISCUSSION AND ANALYSIS

Management's Discussion and Analysis (MD&A), as provided by the management of Endev Energy Inc. (Endev or the Company), of Endev's operating and financial results for the three and twelve month periods ended December 31, 2007 compared to the corresponding periods in the prior year is based on currently available information. This commentary should be read in conjunction with the 2006 annual report, the 2006 MD&A and the audited consolidated financial statements for the years ended December 31, 2006 and 2005 contained therein and the unaudited interim consolidated financial statements for the three and twelve months ended December 31, 2007. This commentary is based on information available to March 6, 2008.

The Company's audited consolidated financial statements, current annual information form and other documents are filed on SEDAR at www.sedar.com and on the Company's website at www.endevenergy.com.

NON-GAAP MEASUREMENTS

The financial data presented has been prepared in accordance with Canadian generally accepted accounting principles (GAAP) except for the terms funds from operations and netback. Funds from operations has been presented for information purposes only and should not be considered an alternative to, or more meaningful than cash flow from operating activities as determined in accordance with GAAP. The determination of Endev's funds from operations may not be comparable to the same reported by other companies. Endev calculates funds from operations as follows:



Three months ended Year ended
December 31 December 31
($000s) 2007 2006 2007 2006
----------------------------------------------------------------------------
Cash flow from operations 7,078 11,130 36,178 32,732
Changes in non-cash working capital 310 (1,996) (2,070) (37)
----------------------------------------------------------------------------
Funds from operations 7,388 9,134 34,108 32,695
----------------------------------------------------------------------------


Funds from operations per share was calculated using the same weighted average shares outstanding used in calculating net income per share. Netback equals total revenue less royalties, operating expenses and transportation expenses.

BASIS OF BARREL OF OIL EQUIVALENT

For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

DISCLOSURE CONTROLS AND PROCEDURES

The Company has a Corporate Communication and Disclosure Policy which has been distributed to all staff detailing the controls, policies and procedures with respect to disclosure to third parties of information concerning the Company's operations and results. The Chief Executive Officer and Chief Financial Officer, who comprise Endev's Disclosure Committee, evaluated the effectiveness of the Company's disclosure controls and procedures as at the period ended December 31, 2007. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective as at December 31, 2007 to provide reasonable assurance that material information relating to the Company, including its consolidated subsidiaries, would be made known to them by others within those entities.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Canadian GAAP except as stated below. It should be recognized however, that no system of internal control over financial reporting can provide more than reasonable assurance as to the effectiveness of such controls over financial reporting.

Management is aware that due to the Company's relatively small scale of operations there is a lack of segregation of duties due to a limited number of employees dealing with accounting and financial matters. However, management has concluded that considering the employees involved and the control procedures in place, including management and Audit Committee oversight, risks associated with such lack of segregation are not significant enough to justify the expense associated with adding employees to clearly segregate duties. Management is aware that in-house expertise to deal with complex taxation, accounting and reporting issues may not be sufficient. The Company utilizes outside assistance and advice on new accounting pronouncements and complex accounting and reporting issues, which is common with companies of a similar size.

The Chief Executive Officer and the Chief Financial Officer have reviewed whether there were changes to the internal controls over financial reporting and have concluded that there have been no significant changes to the Company's internal control over financial reporting that occurred during the most recent period that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

As at December 31, 2007, the Chief Executive Officer and Chief Financial Officer evaluated the design and implementation of the Company's internal control over financial reporting. In part this evaluation was based on the work of third-party specialists who were engaged by the Company to formally document Endev's internal controls over financial reporting. The initial documentation of internal controls over financial reporting was completed effective December 31, 2006 and has been reviewed and updated with the assistance of third-party specialists, effective December 31, 2007. Based on their evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the design of internal control over financial reporting was sufficiently effective as at December 31, 2007 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Canadian GAAP. Nevertheless, internal control systems, particularly those of a company the size of Endev, have limitations. Regardless of how well designed and implemented the control systems are, they may not prevent or detect misstatements, errors or fraud.



RESULTS OF OPERATIONS

Production

Endev achieved the following daily production rates:

Three months ended Year ended
December 31 December 31
% %
Daily production 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Natural gas (mcf/d) 17,586 19,528 (10) 18,328 18,006 2
Natural gas liquids (bbl/d) 66 111 (41) 70 84 (17)
Crude oil (bbl/d) 862 772 12 897 679 32
----------------------------------------------------------------------------
Total production (boe/d) 3,859 4,138 (7) 4,021 3,764 7
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Fourth quarter 2007 production declined seven percent from the fourth quarter of 2006 and declined one percent from the third quarter of 2007 to average 3,859 boe per day. Natural gas accounted for 76 percent of the Company's production in the fourth quarter of 2007 compared to 79 percent in 2006. Natural gas production in the fourth quarter of 2007 decreased 10 percent compared to the same period in 2006 to 17,586 mcf per day. Crude oil production for the fourth quarter increased 12 percent to 862 barrels per day, compared to 772 barrels per day for the same period in 2006.

Production increased seven percent to 4,021 boe per day for the year ended December 31, 2007 compared to 3,764 boe per day for the same period in 2006. Crude oil production for the year ended December 31, 2007 increased 32 percent to 897 barrels per day, compared to 679 barrels per day for the same period in 2006. The increase was due to the Majorville Mannville oil discoveries during the period. Natural gas production increased marginally to 18,328 mcf per day compared to 18,006 mcf per day for the same period in 2006. The increase in gas production over 2006 is the result of production increases at the Majorville Mannville area, where the wells were tied-in in late 2006 and early 2007. The production increases were offset by a decline in shallow gas production.



Production by Area

Three months ended Year ended
December 31 December 31
% %
Daily production (boe/d) 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Majorville Shallow Gas 1,760 2,349 (25) 1,924 2,180 (12)
Majorville Mannville 910 569 60 937 418 124
Drumheller 295 267 10 300 274 9
Other 894 953 (6) 860 892 (4)
----------------------------------------------------------------------------
Total 3,859 4,138 (7) 4,021 3,764 7
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The table above illustrates the average production from each of the Company's principal areas of operations. Majorville Mannville production has increased over the prior year as the Company concentrated its drilling activities in this area over the second half of 2006 and into 2007. Mannville production is expected to continue to increase as the Company commits additional capital to it in the future.



Commodity Markets

Three months ended Year ended
December 31 December 31
% %
Average prices 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Natural gas AECO ($/mcf) 6.14 6.91 (11) 6.55 6.53 -
Natural gas NYMEX
(US$/mmbtu) 7.03 6.62 6 6.92 7.26 (5)
Crude oil Edmonton light
($/bbl) 86.42 64.49 34 76.35 72.77 5
Crude oil WTI (US$/bbl) 90.68 60.21 51 72.34 66.22 9


Natural Gas

The AECO spot daily gas index increased $0.02 per mcf year-over-year to $6.55 per mcf in 2007 while NYMEX natural gas prices were down by US$0.34 per mmbtu or five percent, averaging US$6.92 per mmbtu over the same period. Alberta spot prices at AECO decreased less than NYMEX prices in spite of the continued appreciation of the Canadian dollar against the US dollar. In the fourth quarter of 2007, AECO rose by $0.55 per mcf over the third quarter of 2007 to average $6.14 per mcf.

Crude Oil

World oil prices increased significantly again in 2007 with West Texas Intermediate (WTI) reaching a high of US$94.63 per bbl in November. WTI averaged a record US$72.34 per bbl over 2007, up US$6.12 per bbl or nine percent from 2006. For the fourth quarter of 2007, WTI increased US$15.30 per bbl or 20 percent over the third quarter of 2007 to average US$90.68 per bbl. In 2007 Edmonton par prices in Canadian terms increased to $76.35 per bbl, up $3.58 per bbl or five percent over 2006. In the fourth quarter of 2007 Edmonton par prices averaged $86.42 per bbl, up $6.47 per bbl or eight percent from the third quarter of 2007. The continued appreciation of the Canadian dollar compared to the US dollar reduced Edmonton par prices in Canadian dollar terms. Canadian crude differentials to WTI also widened significantly in the fourth quarter of 2007 due to pipeline problems, refinery problems and high inventory levels ahead of the start of cold weather.

The Canadian dollar rose from an average of $0.88 against the US dollar in 2006 to an average of $0.93 in 2007. These averages understate the volatility of the currency changes as the Canadian dollar reached par with the US dollar in October 2007 and significantly exceeded par in the early part of December 2007.

Financial Instruments

The Company entered into a series of costless collar financial contracts to hedge the risk of lower natural gas prices in the summer and lower oil prices in the fall and winter. For the period April 2007 through October 2007 the Company had gas contracts for the sale of 6,000 GJ per day of natural gas at an average floor price of $6.46 per GJ and an average ceiling price of $7.55 per GJ. This represented approximately 30 percent of the Company's natural gas production for the period. The oil contracts entered into are for 250 barrels per day from September 2007 to March 2008 and for 200 barrels per day from April 2008 to June 2008. The contracts represent approximately 25 percent of estimated oil production. For the period April 2008 through October 2008 the Company has in total gas contracts for the sale of 8,000 GJ per day of natural gas at an average floor price of $5.99 per GJ and an average ceiling price of $7.63 per GJ. All contracts are marked to market with the corresponding valuation recorded on the balance sheet. The contracts are detailed further in notes 10 and 13 to the consolidated financial statements.



Average Prices Received

Endev realized the following commodity prices including the effect of
realized gains and losses on commodity contracts:

Three months ended Year ended
December 31 December 31
Average sales prices % %
realized 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Natural gas ($/mcf) 6.13 7.03 (13) 6.69 6.65 1
Natural gas liquids ($/bbl) 71.47 51.87 38 62.45 55.43 13
Crude oil ($/bbl) 70.12 56.04 25 67.19 63.31 6
Weighted Average ($/boe)
(6:1) 44.84 45.04 - 46.53 44.49 5
----------------------------------------------------------------------------


The sales prices realized by the Company for natural gas are consistent with AECO pricing. The Company's realized price for oil is increasing relative to Edmonton par as the increased Mannville oil production attracts a higher price due to its higher quality relative to the other oil production of the Company.

During the fourth quarter of 2007 the Company realized a gain of $0.3 million or $0.17 per mcf on natural gas commodity contracts and for the year realized a gain of $0.9 million or $0.14 per mcf. The oil contract realized a loss of $0.3 million or $4.40 per barrel in the fourth quarter and $1.16 per barrel for the year. There were no realized gains or losses on commodity price risk contracts in 2006.



Operating Netbacks

Endev realized the following operating netbacks from oil and gas operations
including the effect of realized gains and losses on commodity contracts:

Three months ended Year ended
December 31 December 31
% %
Netback per boe (6:1) ($) 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Petroleum and natural gas
revenues 44.84 45.04 - 46.53 44.49 5
Royalties, net of ARTC 7.50 6.19 21 7.99 6.96 15
Operating expenses 10.66 9.11 17 9.38 8.84 6
Transportation 1.04 0.97 7 1.10 0.95 16
----------------------------------------------------------------------------
Operating netback 25.64 28.77 (11) 28.06 27.74 1
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Production Revenue

Endev realized the following gross revenues:

Three months ended Year ended
December 31 December 31
% %
($000s) 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Natural gas 9,653 12,636 (24) 43,808 43,738 -
Natural gas liquids 432 529 (18) 1,586 1,695 (6)
Crude oil 5,910 3,983 48 22,374 15,696 43
----------------------------------------------------------------------------
Total 15,995 17,148 (7) 67,768 61,129 11
----------------------------------------------------------------------------
----------------------------------------------------------------------------


In the fourth quarter gross revenues decreased seven percent to $16.0 million from $17.1 million for the same period in 2006 due to a seven percent decrease in production. Crude oil revenue increased 48 percent in the fourth quarter of 2007 over the same period in 2006 due to a 12 percent increase in crude production and a 25 percent increase in crude oil prices realized. Crude oil represents 37 percent of the Company's revenues, on 22 percent of production, in the fourth quarter of 2007 and 23 percent of revenue, on 19 percent of production, in 2006.

Gross revenues for the year increased 11 percent to $67.8 million from $61.1 million for the same period in 2006 due to a seven percent increase in production volume and five percent higher average prices per boe. Natural gas production revenues were relatively unchanged at $43.8 million while oil production revenue increased by 43 percent to $22.4 million due to a 32 percent increase in production and a six percent increase in the price realized.



Royalties

Three months ended Year ended
December 31 December 31
% %
2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Royalties ($000s) 2,663 2,355 13 11,724 9,563 23
Average royalty rate (%) 17 14 21 17 16 6
$/boe 7.50 6.19 21 7.99 6.96 15
----------------------------------------------------------------------------


In the third and fourth quarter of 2007 the Company recorded a negative adjustment for ARTC in the amount of $1.0 million that related to the 2004 and 2005 taxation years. Royalties were $2.7 million in the fourth quarter of 2007, including the ARTC adjustment. Excluding the ARTC adjustment the average royalty rate for the fourth quarter would have been in line with the 14 percent of revenue for the same period in 2006. On a per unit basis, excluding the ARTC adjustment, royalties were $6.66 per producing boe in the fourth quarter of 2007 compared to $6.19 in the same period in 2006.

Royalties for the year were $11.7 million and $9.6 million in 2006, and excluding the ARTC adjustment, would have averaged 16 percent of revenue in both years. On a per unit basis, excluding the ARTC adjustment, royalties were $7.31 per producing boe for 2007 compared to $6.96 in 2006. The increase in royalties is consistent with the increase in the average price per boe realized by the Company and also reflects the elimination of the ARTC in 2007.

Approximately 50 percent of the royalties Endev pays are Crown royalties primarily in the province of Alberta. The Government of Alberta's announcement on October 25, 2007 will affect the rate of these Alberta Crown royalties beginning January 1, 2009. This change is expected to be marginally beneficial to Endev, as our shallow gas production will be charged a lower royalty rate in 2009.



Expenses

Three months ended Year ended
December 31 December 31
% %
($000s) 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Operating 3,783 3,468 9 13,771 12,148 13
Transportation 371 371 - 1,621 1,304 24
General and administrative 1,210 1,508 (20) 4,605 4,829 (5)
Interest 708 774 (9) 3,028 2,180 39


Three months ended Year ended
December 31 December 31
% %
Expenses per boe $ 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Operating 10.66 9.11 17 9.38 8.84 6
Transportation 1.04 0.97 7 1.10 0.95 16
General and administrative 3.41 3.96 (14) 3.14 3.51 (11)
Interest 1.99 2.03 (2) 2.06 1.59 30


Operating

On a per unit basis, operating costs increased 17 percent to $10.66 per producing boe during the fourth quarter of 2007 compared to $9.11 per producing boe in the same period in 2006. The increase in the fourth quarter of 2007 is the result of well servicing to optimize production and to repair or replace equipment failures.

During the year 2007 per unit operating costs increased six percent to $9.38 per producing boe compared to $8.84 per producing boe in the same period in 2006. Operating expenses increased 13 percent to $13.8 million compared to $12.1 million in the same period in 2006. The increase in year-over-year operating costs is the result of an increase in well servicing to optimize production, well repairs and maintenance. The increase in oil production, resulted in an increase in the costs associated with the transportation of oil emulsion to be treated for sale. The Company has, however, realized some operating efficiencies as additional gas is processed through Company-owned facilities at Majorville. These efficiencies, combined with marginal reductions in some field service costs, have somewhat offset the increases in operating costs. We will continue to work with service providers and look at ways to increase operational effectiveness to manage operating costs in the future.

Transportation

Transportation costs averaged $1.04 per boe in the fourth quarter of 2007 compared to $0.97 per boe in the fourth quarter of 2006 and $1.10 per boe for 2007 compared to $0.95 per boe in 2006.

This increase in transportation costs was the result of the Company's increased production of oil, which is more costly to transport than gas is.



General and Administrative (G&A)

Three months ended Year ended
December 31 December 31
% %
($000s) 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Gross G&A costs 1,856 1,931 (4) 6,795 6,027 13
Capital and operating
recoveries (390) (557) (30) (1,978) (1,862) 6
Capitalized overhead (475) (447) 6 (1,264) (1,234) 2
----------------------------------------------------------------------------
Net G&A costs 991 927 7 3,553 2,931 21
Stock-based compensation 218 581 (62) 1,052 1,898 (45)
----------------------------------------------------------------------------
Total G&A costs 1,209 1,508 (20) 4,605 4,829 (5)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Three months ended Year ended
December 31 December 31
% %
$ per boe 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Gross G&A costs 5.23 5.07 3 4.63 4.39 6
Capital and operating
recoveries (1.10) (1.46) (25) (1.35) (1.36) (1)
Capitalized overhead (1.34) (1.17) 14 (0.86) (0.90) (4)
----------------------------------------------------------------------------
Net G&A costs 2.79 2.43 15 2.42 2.13 13
Stock-based compensation 0.62 1.53 (60) 0.72 1.38 (48)
----------------------------------------------------------------------------
Total G&A costs 3.41 3.96 (14) 3.14 3.51 (11)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Net G&A costs, after capital and operating recoveries and capitalized overhead, increased to $1.0 million in the fourth quarter of 2007 compared to $0.9 million in the same period in 2006. The increase in net G&A costs in the fourth quarter of 2007 over the same period in 2006 is due primarily to an increase in staffing costs. On a barrel of oil equivalent basis, net G&A costs increased to $2.79 per boe from $2.43 per boe.

Net G&A costs increased to $3.6 million in 2007 compared to $2.9 million in 2006. On a barrel of oil equivalent basis, net G&A costs increased to $2.42 per boe from $2.13 per boe. The Company capitalizes the salaries and associated direct costs of professional staff directly associated with the Company's exploration and development activities.

Stock-based compensation costs were $0.2 million in the fourth quarter of 2007 and $0.6 million in 2006. Stock-based compensation costs were $1.1 million in 2007 and $1.9 million in 2006, as more options were issued in 2006. As at December 31, 2007, the Company has $0.5 million of unamortized stock-based compensation costs that will be charged to income over the remaining vesting period of the options outstanding.

Interest and Financing Charges

Interest and financing charges for the fourth quarter of 2007 were $0.7 million or $1.99 per producing boe compared to $0.8 million or $2.03 per producing boe for the comparable period in 2006. Interest and financing charges for 2007 were $3.0 million or $2.06 per producing boe compared to $2.2 million or $1.59 per producing boe for the comparable period in 2006. The increase in interest and financing charges reflect higher average debt levels and increased interest rates in 2007 as compared to 2006. Year end bank indebtedness declined by $9.4 million to $42.6 million at December 31, 2007 from $52.0 million the prior year end.

Income and Capital Taxes

The Company has no provision for current income taxes in 2007 and does not expect to have a current income tax liability for 2008, as the Company has sufficient tax pools to offset income in the year. At December 31, 2007 the Company has approximately $113.0 million in tax pools and non-capital loss carry forwards available for future use as deductions from taxable income.

Future income tax liabilities arise due to the difference between the tax basis of assets and their respective accounting carrying cost. During the second quarter of 2007, the Canadian Federal Government enacted reductions to its corporate income tax rates, resulting in a reduction of future income tax liabilities of approximately $0.3 million. During the second quarter of 2006, a larger reduction in rates was enacted resulting in a reduction of future income tax liabilities of approximately $2.8 million. For the three months ended December 31, 2007, the provision for future taxes was a reduction of $1.9 million and a reduction of $0.3 million in 2006. For the year 2007 there is a future income tax reduction of $2.7 million and a reduction of $1.7 million in 2006.

Depletion and Depreciation

Depletion is calculated using the unit-of-production method based on total estimated proved reserves. Depletion and depreciation expense for the fourth quarter was $8.7 million or $24.55 per boe, compared to $9.8 million or $25.72 per boe for the same period in 2006. Depletion expense for 2007 was $37.9 million or $25.79 per boe compared to $29.8 million or $21.73 per boe in 2006. Depletion expense per boe in the fourth quarter of 2007 has declined from the third quarter of 2007 due to additional reserves being recognized by our independent reserve evaluator at December 31, 2007. The year-over-year depletion rate has increased due to additional costs subject to depletion and a reduction in reserves at the end of 2006. The reduction in reserves in 2006 was due to technical revisions to prior years' reserves estimates.

Asset Retirement Obligation Accretion

The provision for accretion of asset retirement costs for the fourth quarter was $0.2 million in both 2007 and 2006. The provision was $0.7 million for the year 2007 compared to $0.6 million in the year 2006.

Goodwill

Endev records goodwill on corporate acquisitions when the total purchase price exceeds the fair value of the net identifiable assets and liabilities of the acquired company. The goodwill balance is assessed for impairment at each reporting period and any impairment is recognized based on the fair value of the goodwill compared to its book value. At September 30, 2007 the Company's assessment of its goodwill determined that the book value of the goodwill exceeded the fair value of the goodwill due to the decline in the Company's market capitalization. This test resulted in a non-cash write-down of goodwill of $7.8 million. There has been no impairment to the value of the Company's petroleum and natural gas assets.



Net Income and Funds from Operations

Three months ended Year ended
December 31 December 31
($000s, except per share % %
amounts) 2007 2006 change 2007 2006 change
----------------------------------------------------------------------------
Net income (loss) (262) (634) - (10,800) 2,679 -
Basic per share - (0.01) - (0.12) 0.03 -
Diluted per share - (0.01) - (0.12) 0.03 -

Funds from operations 7,388 9,134 (20) 34,108 32,695 4
Basic per share 0.08 0.10 (20) 0.38 0.37 3
Diluted per share 0.08 0.10 (20) 0.38 0.36 6


The Company had a net loss of $0.3 million for the fourth quarter compared to a net loss of $0.6 million for the same period in 2006. The reduction in net loss was due to a decrease in depletion and stock-based compensation and increased future income tax recoveries. This was partially offset by a decrease in petroleum and natural gas revenue, the loss on commodity contracts and an increase in operating costs. Funds from operations in the fourth quarter decreased to $7.4 million in 2007 from $9.1 million for the same period in 2006 due to a decrease in petroleum and natural gas revenue and an increase in operating costs that was partially offset by decreases in stock-based compensation and interest. On a per share basis, funds from operations were $0.08 per basic share in 2007 and $0.10 in 2006. Funds from operations decreased two percent in the fourth quarter of 2007 from the third quarter of 2007.

In 2007 the Company realized a loss of $10.8 million, with a loss of $0.12 per share on a basic and diluted basis compared to net income of $2.7 million for the same period in 2006, with $0.03 earnings per share on a basic and diluted basis. The decrease in net income was due to an increase in depletion, interest and operating costs and the write-down of goodwill partially offset by an increase in petroleum and natural gas revenue. The future income tax rate reduction in both years increased net income. Funds from operations for the year increased to $34.1 million in 2007 from $32.7 million in 2006 due to an increase in petroleum and natural gas revenue that was partially offset by increases in operating, general and administrative costs, interest and the ARTC adjustment for prior years. On a per share basis, funds from operations were $0.38 per basic share in 2007 and $0.37 in 2006.



SUMMARY OF QUARTERLY FINANCIAL INFORMATION

Dec. 31 Sept. 30 June 30 March 31
($000s, except per share amounts) 2007 2007 2007 2007
----------------------------------------------------------------------------

Gross revenue 15,995 15,673 17,438 18,659
Funds from operations 7,388 7,525 9,165 10,030
Basic per share 0.08 0.09 0.10 0.11
Diluted per share 0.08 0.09 0.10 0.11
Net income (loss) (262) (9,991) 364 (911)
Basic per share - (0.11) - (0.01)
Diluted per share - (0.11) - (0.01)
Capital expenditures, net 5,069 6,791 5,123 7,441
Net debt (1) 45,172 47,144 47,878 52,157
Total daily production (boe/d) 3,859 3,896 4,000 4,337


Dec. 31 Sept. 30 June 30 March 31
($000s, except per share amounts) 2006 2006 2006 2006
----------------------------------------------------------------------------

Gross revenue 17,148 13,972 13,790 16,219
Funds from operations 9,134 7,314 7,456 8,791
Basic per share 0.10 0.08 0.08 0.10
Diluted per share 0.10 0.08 0.08 0.10
Net income (loss) (634) (275) 2,474 1,114
Basic per share (0.01) - 0.03 0.01
Diluted per share (0.01) - 0.03 0.01
Capital expenditures, net 14,948 15,296 11,965 17,263
Net debt (1) 54,746 48,932 40,851 36,496
Total daily production (boe/d) 4,138 3,746 3,555 3,612

(1) Excluding unrealized gains (losses) on commodity contracts.


SELECTED ANNUAL INFORMATION

($000s, except per share amounts) 2007 2006 2005
----------------------------------------------------------------------------

Gross revenue 67,768 61,129 71,538
Net income (loss) (10,800) 2,679 12,044
Basic per share (0.12) 0.03 0.14
Diluted per share (0.12) 0.03 0.14
Total assets 166,580 188,940 158,693
Total liabilities 81,527 94,030 68,581
Total daily production (boe/d) 4,021 3,764 3,778


CAPITAL EXPENDITURES

The following table outlines Endev's capital expenditures:

Three months ended Year ended
December 31 December 31
($000s) 2007 2006 2007 2006
----------------------------------------------------------------------------
Land and seismic 1,428 577 4,454 3,990
Drilling and completions 3,365 10,795 15,571 40,867
Tie-ins and facilities 268 3,570 4,345 14,399
Other 8 6 54 216
----------------------------------------------------------------------------
Total capital expenditures 5,069 14,948 24,424 59,472
----------------------------------------------------------------------------
----------------------------------------------------------------------------


During the three months ended December 31, 2007, the Company incurred capital expenditures of $5.1 million. The Company drilled five gross (5.0 net) wells and spent $1.4 million on land and seismic.

During the year ended December 31, 2007, the Company incurred capital expenditures of $24.4 million. Endev spent $4.4 million for land and seismic, $15.6 million on drilling and completions and $4.3 million for tie-ins and facilities. This capital was spent on the 31 gross (30.0 net) wells drilled in 2007.



FOURTH QUARTER 2007 DRILLING RESULTS

Gross Net
Gas Oil Dry Total Gas Oil Dry Total
----------------------------------------------------------------------------
Carstairs 1 - - 1 1.0 - - 1.0
Goodwin 1 - - 1 0.8 - - 0.8
Majorville 3 - - 3 3.0 - - 3.0
----------------------------------------------------------------------------
Total 5 - - 5 4.8 - - 4.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------


2007 DRILLING RESULTS

Gross Net
Gas Oil Dry Total Gas Oil Dry Total
----------------------------------------------------------------------------
Admiral 5 - - 5 5.0 - - 5.0
Bantry 1 - - 1 1.0 - - 1.0
Carstairs 1 - - 1 1.0 - - 1.0
Goodwin 1 - - 1 0.8 - - 0.8
Majorville 11 6 2 19 10.4 6.0 1.8 18.2
Provost - 2 2 4 - 2.0 2.0 4.0
----------------------------------------------------------------------------
Total 19 8 4 31 18.2 8.0 3.8 30.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------


In 2007 Endev drilled 31 gross wells with a success rate of 87 percent. This
year, drilling in the Majorville area has focused on Mannville targets.

LAND SUMMARY

As at December 31, 2007 Developed Undeveloped Total
(acres) Gross Net Gross Net Gross Net
----------------------------------------------------------------------------
Alberta 183,247 117,240 127,725 82,112 310,972 199,352
British Columbia 316 43 316 43 632 86
Manitoba 316 115 - - 316 115
Saskatchewan 8,685 4,410 31,187 15,899 39,872 20,309
----------------------------------------------------------------------------
Total 192,564 121,808 159,228 98,054 351,792 219,862
----------------------------------------------------------------------------


During the fourth quarter of 2007 Endev acquired 6,880 gross (6,880 net) acres of land at Crown land sales.

In 2007 Endev acquired 55,296 gross acres (36,172 net) of land at Crown land sales and through earning via farm-in activity and 19,092 gross acres (12,747 net) expired.

LIQUIDITY AND CAPITAL RESOURCES

Endev has a revolving credit facility with the National Bank of Canada for $60 million which is reviewed periodically by the bank, with the next review scheduled for May 2008. At December 31, 2007, the Company had approximately $42.6 million outstanding on its revolving credit facility and a working capital deficit, excluding unrealized gains on commodity contracts, of $2.6 million for total net debt of approximately $45.2 million, resulting in a debt to annualized fourth quarter cash flow ratio of 1.3.

Total net capital expenditures of $5.1 million for the three months ended December 31, 2007 were funded from operations. In 2007 cash flow from operations exceeded capital expenditures and the Company reduced bank indebtedness by $9.4 million. It is anticipated that future capital expenditures and operations will be funded with cash flow from operations and additional debt as required. In 2008 the Company's capital expenditures are expected to approximate cash flow.

OUTLOOK

The Company's plans for 2008 include a capital expenditure program of $38 million and the drilling of 36 wells (31 net) in our medium and higher risk programs and are estimating average daily production of 4,300 to 4,500 boe per day for 2008. Currently we do not have plans to drill new wells on our shallow gas properties in Alberta and Saskatchewan unless the economic conditions change. This capital program in 2008 will approximate cash flow and result in manageable debt levels and a continued healthy balance sheet. We will continue to ensure that capital is deployed in an economic manner that reflects the recent royalty announcements, the fluctuating commodity markets and the need to manage costs in all areas of our operations.

SHARE INFORMATION

The Company had 88,976,557 shares and 6,477,100 options to purchase shares outstanding as at December 31, 2007. At March 6, 2008 the Company had 88,976,557 shares and 6,820,200 options outstanding.

The Company issued 486,500 shares pursuant to the exercise of stock options during 2007.

In October 2007 the Company announced approval of its normal course issuer bid ("NCIB") program to purchase for cancellation, through the facilities of the Toronto Stock Exchange, up to 7.3 million of its outstanding shares during the period October 9, 2007 through to October 8, 2008. In the fourth quarter of 2007 412,500 shares were purchased and cancelled at an average price of $0.86 per share for a total cost of $355 thousand. At March 6, 2008 no shares have been purchased in 2008.



Three months ended Year ended
December 31 December 31
(000s) 2007 2006 2007 2006
----------------------------------------------------------------------------
Shares outstanding
- Basic 88,977 88,903 88,977 88,903
- Diluted 95,465 95,632 95,465 95,632
Weighted average shares outstanding
- Basic 89,325 88,903 89,224 88,646
- Diluted 89,325 88,903 89,224 89,636


BUSINESS RISKS

The oil and gas exploration and development sector has inherent risks that begin with the exploration process, which is capital intensive and may or may not encounter economic reserves of crude oil or natural gas, in addition to unforeseen production declines and as a consequence reduced reserves. Increasingly, readily available technology helps to mitigate the risk. Endev employs the most appropriate technology in all areas of its business. The intrinsic business and financial risks within the industry include volatility of commodity prices, fluctuation in supplier costs, inflation, changes in exchange rates, the cost of capital and other macro economic factors. The recent volatility in commodity prices and the rise in service costs may require Endev to re-evaluate its capital spending and activity plans in the future. Endev focuses on managing costs within its control and pursuing geographic areas and geologic targets that result in manageable capital risk. By focusing on core areas, Endev reduces risk by utilizing its experience in the area and reducing the administrative and logistical costs of its field activity. In order to minimize the risks to the community and to its field staff and suppliers, Endev demands the highest standards of safety on its leases. A more detailed discussion of the business risks the Company is subject to is found in our current annual information form filed on SEDAR at www.sedar.com.

NEW GREENHOUSE GAS AND AIR EMISSIONS LEGISLATION

The Alberta Government has introduced legislation that will enable the province to regulate emissions of Greenhouse Gases. The regulations require facilities that emit over 100,000 tonnes of greenhouse gases a year to reduce their emissions intensity by 12 percent beginning July 1, 2007 or pay a fee based on emissions in excess of the targeted reductions. Endev does not have an ownership interest in any facilities that are over the current threshold.

The Federal Government has also released its regulatory framework to reduce emissions of both Greenhouse Gases and four smog-forming pollutants with targets coming into force in 2010 and 2015, respectively. Clarification surrounding the regulations is expected in the next year with the regulations to be finalized by 2010.

Multiple compliance mechanisms exist under both the Alberta and Federal plans, including making contributions to technology funds, emissions trading and offset credits.

Endev is in the process of fully evaluating the impact of these regulations but we believe that the cost and impact on our operations will be minor.

NEW ALBERTA ROYALTY REGIME

On October 25, 2007 the Government of Alberta announced that it would be altering the royalty regime in the province effective January 1, 2009. While the government states that the royalty on some wells will go down, it also projects that overall the royalty collected will go up significantly. Based on a preliminary review of the available details, we anticipate the royalty on our lower productivity shallow gas wells may go down marginally while the royalty on higher productivity gas wells and oil wells will increase. Our independent reserve engineers have analyzed the effect of the changes in the royalty structure on our current reserve base and found that Endev will be marginally better off under the new regime based on the details now available.

CONTRACTUAL OBLIGATIONS

In the normal course of business the Company enters into various forms of contractual obligations including: royalty agreements, operating agreements, processing agreements, purchase of services and lease obligations for office space and office equipment. All contractual obligations reflect market conditions and do not involve related parties.

The only significant obligation of the Company with a fixed term is a lease for office premises terminating on March 31, 2012. The estimated obligation for the term of the lease at December 31, 2007, including operating costs is $2.5 million for approximately 13,600 square feet of office space.

CHANGES IN ACCOUNTING POLICIES

On January 1, 2007 the Company adopted the new Canadian accounting standards for financial instruments - recognition and measurement, financial instruments - presentations and disclosures, hedging and comprehensive income. These accounting policies are detailed in note 3 to the financial statements. Prior periods have not been restated. The adoption of these standards did not impact the financial statements of the Company and did not result in any adjustments for the recognition or measurement of financial instruments as compared to the financial statements for periods prior to the adoption of these standards.

INTERNATIONAL FINANCIAL REPORTING STANDARDS

The Canadian Institute of Chartered Accountants proposes to implement International Financial Reporting Standards ("IFRS") as part of Canadian GAAP. Such standards have been established cooperatively by many countries and have widespread application to financial reporting by businesses throughout the world. The adoption of IFRS in Canada will result in major changes to GAAP in Canada and to financial reporting practices followed by Endev. The effective date of introduction for IFRS is proposed for company year ends beginning after December 31, 2010; thus, in the case of Endev, the year ended December 31, 2011. The need to have comparative information presented in accordance with IFRS for the year ended December 31, 2010, which requires the Company's consolidated balance sheet at January 1, 2010 to be IFRS compliant, means that the Company must plan its conversion considerably in advance of the proposed implementation date. Currently, the application of IFRS to the oil and gas industry in Canada requires considerable clarification; correspondingly, the effect of IFRS on the Company's accounting policies and reporting standards and practices is not presently determinable.

The introduction of IFRS will require the application by Endev of resources that may not be available to the Company internally. Management, along with the Board of Directors and its Audit Committee, will need to develop familiarity with the new standards. Further, management must ensure that internal and outsourced accounting applications and processes produce information that can be readily integrated with IFRS.

APPLICATION OF CRITICAL ACCOUNTING ESTIMATES

Significant accounting policies used by Endev Energy Inc. are disclosed in note 2 to the December 31, 2007 consolidated financial statements. Certain accounting policies require that management make appropriate decisions with respect to the formulation of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in these judgments and estimates may have a material impact on the Company's financial results and condition. The following discusses such accounting policies and is included in Management's Discussion and Analysis to aid the reader in assessing the critical accounting policies and practices of the Company and the likelihood of materially different results being reported. Endev's management reviews its estimates regularly. The emergence of new information and changed circumstances may result in actual results or changes to estimated amounts, that differ materially from current estimates.

The following assessment of significant accounting policies is not meant to be exhaustive. The Company might realize different results from the application of new accounting standards promulgated, from time to time, by various rule-making bodies.

Oil and Gas Reserves

Under NI 51-101, "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable (it is likely that the actual remaining quantities recovered will exceed the estimated Proved reserves). In accordance with this definition, the level of certainty targeted by the reporting company should result in at least a 90 percent probability that the quantities actually recovered will equal or exceed the estimated reserves. In the case of "Probable" reserves, which are less certain to be recovered than Proved reserves, NI 51-101 states that it must be equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved plus Probable reserves. With respect to the consideration of certainty, in order to report reserves as Proved plus Probable, the reporting company must believe that there is at least a 50 percent probability that quantities actually recovered will equal or exceed the sum of the estimated Proved plus Probable reserves.

Oil and gas reserves estimates are made using all available geological and reservoir data as well as historical production data. Estimates are reviewed and revised as appropriate. Revisions occur as a result of changes in prices, costs, fiscal regimes, reservoir performance or a change in the Company's plans. The reserve estimates are also used in determining the Company's borrowing base for its credit facilities and may impact the same upon revisions or changes to the reserves estimates. The effect of changes in reserves on the financial results and position of the Company is described under the heading "Full Cost Accounting for Oil and Gas Activities".

Full Cost Accounting for Oil and Gas Activities

Depletion Expense

The Company uses the full cost method of accounting for exploration and development activities. In accordance with this method of accounting, all costs associated with exploration and development are capitalized, regardless of whether they are successful or not. The aggregate of net capitalized costs and estimated future development costs is amortized using the unit-of-production method based on estimated proved oil and gas reserves.
An increase in estimated proved oil and gas reserves would result in a corresponding reduction in depletion expense. A decrease in estimated future development costs would result in a corresponding reduction in depletion expense.

Withheld Costs

Certain costs related to unproved properties may be excluded from costs subject to depletion until proved reserves have been determined or their value is impaired. These properties are reviewed quarterly and any impairment is transferred to the costs being depleted or, if the properties are located in a cost centre where there is no reserve base, the impairment is charged directly to income.

Ceiling Test

The Company is required to review the carrying value of all property, plant and equipment, including the carrying value of oil and gas properties, for potential impairment. Impairment is indicated if the carrying value of the long-lived asset or oil and gas cost centre is not recoverable from the future undiscounted cash flows from proved reserves. If impairment is indicated, the amount by which the carrying value exceeds the estimated fair value of the long-lived asset, based on proved plus probable reserves discounted at the Company's risk free rate, is charged to earnings.

The ceiling test is based on estimates of reserves, production rate, petroleum and natural gas prices, future prices and costs and other relevant assumptions. By their nature, these estimates are subject to measurement uncertainty and the impact on the financial statements could be material.

Asset Retirement Obligations

The Company is required to provide for future removal and site restoration costs. The Company must estimate these costs, using an estimate of future timing, discount and inflation rates, in accordance with existing laws, contracts or other policies. These estimated costs are charged to income and the appropriate liability account over the expected service life of the asset. When future removal and site restoration costs cannot be reasonably determined, a contingent liability may exist. Contingent liabilities are charged to earnings when management is able to determine the amount and the likelihood of the future obligation.

Income Tax Accounting

The determination of the Company's income and other tax liabilities requires interpretation of complex laws and regulations often involving multiple jurisdictions. All tax filings are subject to audit and potential reassessment after the lapse of considerable time. Accordingly, the actual income tax liability may differ significantly from that estimated and recorded by management.

Goodwill

The process of accounting for the purchase of a company results in recognizing the fair value of the acquired company's assets on the balance sheet of the acquiring company. Any excess of the purchase price over fair value is recorded as goodwill. Since goodwill results from the culmination of a process that is inherently imprecise the determination of goodwill is also imprecise. In accordance with the issuance of CICA section 3062, "Goodwill and Other Intangible Assets" goodwill is not amortized but assessed periodically for impairment. The process of assessing goodwill for impairment necessarily requires Endev to determine the fair value of its assets and liabilities. Such a process involves considerable judgment.

Financial Instruments

The Company recognizes the fair value for the unrealized portion of derivative contracts at each reporting date on the financial statements. The fair value is based on an estimate of the amounts that would have been paid to or received from counterparties to settle these instruments given future market prices and other relevant factors. As the fair value is based on a number of subjective estimates such as future prices and volatility in commodity markets, estimates could differ from actual results realized.

Stock-Based Compensation

Endev uses the fair value method for valuing stock options. Under this method, as new options are granted, the fair value of these options will be expensed on a straight-line basis over the applicable vesting period, with an offsetting entry to contributed surplus. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The Black-Scholes option pricing model was developed for use in estimating the fair value of short-term traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of subjective assumptions including expected stock price volatility.

Legal, Environmental Remediation and Other Contingent Matters

The Company is required to both determine whether a loss is probable based on judgment and interpretation of laws and regulations and determine that the loss can reasonably be estimated. When the loss is determined it is charged to earnings. The Company's management must continually monitor known and potential contingent matters and make appropriate provisions by charges to earnings when warranted by circumstance.

FORWARD-LOOKING STATEMENTS

Certain information regarding Endev Energy Inc. set forth in this entire document, including management's assessment of the Company's future plans and operations contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's and management's control including, but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, and timely and cost-effective access to sufficient capital from internal and external sources. Endev's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward-looking statements will provide what, if any, benefits to Endev Energy Inc.



ENDEV ENERGY INC.

Consolidated Balance Sheets

(Unaudited)($000s) December 31, December 31,
2007 2006
----------------------------------------------------------------------------

ASSETS
Current
Cash and cash equivalents $ - $ 10
Accounts receivable 9,002 11,034
Prepaid expenses and deposits 1,167 308
Fair value of commodity contracts (note 10) - 312
----------------------------------------------------------------------------
10,169 11,664
Property, plant and equipment (note 4) 156,411 169,476
Goodwill (note 5) - 7,800
----------------------------------------------------------------------------
$ 166,580 $ 188,940
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness (note 7) $ 42,607 $ 51,958
Accounts payable and accrued liabilities 12,733 14,140
Fair value of commodity contracts (note 10) 349 -
----------------------------------------------------------------------------
55,689 66,098
Asset retirement obligations (note 6) 9,169 8,587
Future income taxes (note 8) 16,669 19,345
----------------------------------------------------------------------------
81,527 94,030
----------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
Share capital (note 9) 68,108 68,177
Contributed surplus (note 9) 4,533 3,521
Retained earnings 12,412 23,212
----------------------------------------------------------------------------
85,053 94,910
----------------------------------------------------------------------------
$ 166,580 $ 188,940
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Commitments (note 12)

The accompanying notes are integral to these consolidated financial
statements.


Signed on behalf of the Board:

John F. Driscoll, Director William D. Robertson, F.C.A., Director


ENDEV ENERGY INC.

Consolidated Statements of Operations and Retained Earnings

(Unaudited) ($000s, except per Three months ended Year ended
share amounts) Dec 31 Dec 31 Dec 31 Dec 31
----------------------------------------------------------------------------
2007 2006 2007 2006
----------------------------------------------------------------------------

REVENUES
Petroleum and natural gas $ 15,995 $ 17,148 $ 67,768 $ 61,129
Royalties (net of Alberta Royalty
Tax Credit) (2,663) (2,355) (11,724) (9,563)
Realized and unrealized gain (loss)
on commodity contracts (note 10) (551) 312 (137) 312
----------------------------------------------------------------------------
12,781 15,105 55,907 51,878
----------------------------------------------------------------------------

EXPENSES
Operating 3,783 3,468 13,771 12,148
Transportation 370 371 1,621 1,304
General and administrative 1,210 1,508 4,605 4,829
Interest 708 774 3,028 2,180
Depletion and depreciation 8,717 9,793 37,856 29,849
Accretion of asset retirement
obligations 179 168 702 632
Write-down of goodwill (note 5) - - 7,800 -
----------------------------------------------------------------------------
14,967 16,082 69,383 50,942
----------------------------------------------------------------------------
Income (loss) before taxes (2,186) (977) (13,476) 936
Future income tax expense
(reduction) (note 8) (1,924) (343) (2,676) (1,743)
----------------------------------------------------------------------------
NET INCOME (LOSS) (262) (634) (10,800) 2,679
Retained earnings , beginning of
period 12,674 23,846 23,212 20,600
Settlement of stock options - - - (67)
----------------------------------------------------------------------------
Retained earnings, end of period $ 12,412 $ 23,212 $ 12,412 $ 23,212
----------------------------------------------------------------------------
----------------------------------------------------------------------------

NET INCOME (LOSS) PER SHARE (note 9)
Basic $ - $ (0.01) $ (0.12) $ (0.03)
Diluted $ - $ (0.01) $ (0.12) $ (0.03)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The accompanying notes are integral to these consolidated financial
statements.


ENDEV ENERGY INC.

Consolidated Statements Of Cash Flows

Three months ended Year ended
(Unaudited) ($000s) Dec 31 Dec 31 Dec 31 Dec 31
----------------------------------------------------------------------------
2007 2006 2007 2006
----------------------------------------------------------------------------

Cash provided by (used in)

OPERATIONS
Net income (loss) $ (262) $ (634) $(10,800) $ 2,679
Depletion and depreciation 8,717 9,793 37,856 29,849
Accretion of asset retirement
obligations 179 168 702 632
Future income taxes (reduction) (1,924) (343) (2,676) (1,743)
Actual abandonment costs (17) (119) (487) (308)
Stock-based compensation (note 9) 218 581 1,052 1,898
Unrealized (gain) loss on commodity
contracts (note 10) 477 (312) 661 (312)
Write-down of goodwill - - 7,800 -
----------------------------------------------------------------------------
7,388 9,134 34,108 32,695
Changes in non-cash working capital
(note 11) (310) 1,996 2,070 37
----------------------------------------------------------------------------
7,078 11,130 36,178 32,732
----------------------------------------------------------------------------
FINANCING
Issue of common shares, net of
issue costs 9 - 246 435
Repurchase of shares under normal
course issuer bid (note 9) (355) - (355) -
Settlement of stock options - - - (214)
Bank indebtedness (744) 9,388 (9,351) 24,993
----------------------------------------------------------------------------
(1,090) 9,388 (9,460) 25,214
----------------------------------------------------------------------------
INVESTING
Property, plant and equipment
additions (5,069) (14,948) (24,424) (59,472)
Changes in non-cash working capital
(note 11) (919) (5,664) (2,304) 1,536
----------------------------------------------------------------------------
(5,988) (20,612) (26,728) (57,936)
----------------------------------------------------------------------------
Change in cash - (94) (10) 10

Cash, beginning of period - 104 10 -
----------------------------------------------------------------------------
Cash, end of period $ - $ 10 $ - $ 10
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Interest paid $ 708 $ 774 $ 3,028 $ 2,180

Taxes paid $ - $ 19 $ - $ 106
----------------------------------------------------------------------------

The accompanying notes are integral to these consolidated financial
statements.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------------------------------
----------------------------------------------------------------------------
December 31, 2007
(Unaudited) (all tabular amounts in $000s, except share and per share
amounts)


1. NATURE OF OPERATIONS AND ORGANIZATION

Endev Energy Inc. is a Calgary-based company involved in the exploration, development and production of petroleum and natural gas in Alberta, Saskatchewan and Manitoba. These consolidated financial statements include the accounts of Endev Energy Inc., it's wholly owned subsidiary Endev Exploration Ltd. (formerly Moxie Exploration Ltd.) and their partnership Endev Resources Partnership, collectively referred hereinafter as "Endev" or the "Company".

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements are stated in Canadian dollars and have been prepared in accordance with Canadian generally accepted accounting principles.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary and partnership. All inter-company transactions and balances have been eliminated.

Joint Ventures

Substantially all of the Company's operations are conducted jointly with others and, accordingly, the financial statements reflect only the Company's proportionate interest in such activities.

Measurement Uncertainty

The amounts recorded for depletion and depreciation of oil and gas properties and equipment and the provision for accretion of asset retirement obligations are based on estimates. The ceiling test is based on estimates of reserves, production rates, oil and gas prices, future costs and other relevant assumptions. By their nature, these estimates are subject to measurement uncertainty and the effect on the financial statements of changes in such estimates in future periods could be significant.

Cash and Cash Equivalents

Cash includes cash and short-term money market instruments with a maturity of less than three months.

Oil and Gas Properties

Oil and gas properties are accounted for using the full cost method of accounting whereby all costs of acquiring, exploring and developing, and renewals and enhancements that extend the economic life of oil and gas properties are capitalized. All costs of exploring for and developing petroleum and natural gas properties and related reserves are capitalized into a cost centre. Such costs include those related to lease acquisition, geological and geophysical activities, lease rentals on non-producing properties, drilling of productive and non-productive wells, tangible production equipment, asset retirement costs, and that portion of general and administrative expenses directly attributable to exploration and development activities. Proceeds on sale or disposition of oil and gas properties are credited to the full cost pool unless this results in a change in the depletion and depreciation rate by 20 percent or more, in which case a gain or loss is recognized in the statement of operations.

i) Ceiling Test

The Company follows the full cost method of accounting for oil and gas activities which requires a detailed impairment calculation at least annually or when events or circumstances indicate a potential impairment of the carrying amount of oil and gas assets may have occurred.

An impairment loss is recognized when the carrying amount of a cost centre is not recoverable and exceeds its fair value. The carrying amount is assessed to be recoverable when the sum of the undiscounted cash flows expected from proved reserves plus the cost of unproved interests, net of impairments, exceeds the carrying amount of the cost centre. When the carrying amount is assessed not to be recoverable, an impairment loss is recognized to the extent that the carrying amount of the cost centre exceeds the sum of the discounted cash flows from proved and probable reserves plus the cost of unproved interests, net of impairments, of the cost centre. The cash flows are estimated using expected future product prices and costs and are discounted using a risk-free interest rate.

ii) Depletion and Depreciation

The provision for depletion and depreciation is computed using the unit-of-production method based on the estimated gross proved oil and gas reserves, before royalties, as determined by an independent engineer. For purposes of the calculation, natural gas reserves and production are converted to equivalent volumes of petroleum based upon relative energy. Costs of significant unproved properties, net of impairments are excluded from the depletion calculation. When proved reserves are assigned to the property or the property is considered to be impaired, the cost of the property or the amount of impairment is added to the full cost pool.

Depreciation of office equipment and furniture is provided for at 20 percent per annum.

Asset Retirement Obligations

The Company uses the asset retirement obligation method of recording the future cost associated with removal, site restoration and asset retirement costs. The fair value of the liability for the Company's asset retirement obligation is recorded in the period in which it is incurred, discounted to its present value using the Company's credit adjusted risk-free interest rate and the corresponding amount is recognized by increasing the carrying amount of oil and gas properties. The liability amount is increased each reporting period due to the passage of time and the amount of accretion is charged to earnings in the period. Revisions to the estimated timing of cash flows or to the original estimated undiscounted cost could also result in an increase or decrease to the obligation. Actual costs incurred upon settlement of the retirement obligation are charged against the obligation to the extent of the liability recorded.

Goodwill

Goodwill is recorded in a corporate acquisition where the total purchase price exceeds the net identifiable assets and liabilities of the acquired company. The goodwill balance is not amortized but is assessed for impairment annually in the fourth quarter, or when indications of impairment are present. Where fair value of the consolidated entity is less than the book value of the consolidated entity, a loss would be charged to income for the amount that the carrying amount of the goodwill exceeds its fair value.

Derivative Financial Instruments

The Company uses various types of derivative financial instruments to manage risk associated with crude oil and natural gas price fluctuations. These instruments are not used for trading or speculative purposes. Proceeds and costs realized from holding the related contracts are recognized in the statement of operations at the time that each transaction under a contract is settled. For the unrealized portion of such contracts, the Company utilizes the fair value method of accounting. The fair value is based on an estimate of the amounts that would have been paid to, or received from, counterparties to settle these instruments given future market prices and other relevant factors. The method requires the fair value of the derivative financial instruments to be recorded at each balance sheet date.

Future Income Taxes

The Company follows the liability method of accounting for future income taxes. Under this method, income tax liabilities and assets are recognized for the estimated tax consequences attributable to differences between the amounts reported in the financial statements and their respective tax bases, using substantively enacted income tax rates. The effect of a change in income tax rates on future tax liabilities and assets is recognized in income in the period that the change occurs. Temporary differences arising on acquisitions result in future income tax assets and liabilities.

Per Share Information

Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding during the period. The weighted average number of shares is adjusted for the dilutive effect of options. The dilutive effect of options uses proceeds received on exercise of options to purchase common shares at the average price during the period. The weighted average number of shares outstanding is then adjusted by the net change.

Stock-based Compensation Plan

The Company has a stock-based compensation plan as described in note 7. The Company uses the fair value method for valuing stock options. Under this method, compensation cost attributed to all stock options is measured at fair value at the grant date and charged to income over the vesting period with a corresponding increase in contributed surplus. Consideration paid on exercise of options is credited to share capital together with the amount previously recognized in contributed surplus.

Revenue Recognition

Petroleum and natural gas revenues are recognized when the title and risks pass to the purchaser. Revenue has been presented prior to transportation costs and a separate expense for transportation costs has been presented in the consolidated statements of operations and retained earnings.

3. CHANGES IN ACCOUNTING POLICIES

On January 1, 2007, the Company adopted the new Canadian accounting standards for financial instruments - recognition and measurement, financial instruments - presentations and disclosures, hedging and comprehensive income. Prior periods have not been restated.

(a) Financial Instruments - Recognition and Measurement

This new standard requires all financial instruments within its scope, including all derivatives, to be recognized on the balance sheet initially at fair value. Subsequent measurement of all financial assets and liabilities except those held-for-trading and available for sale are measured at amortized cost determined using the effective interest rate method. Held-for-trading financial assets are measured at fair value with changes in fair value recognized in earnings. Available-for-sale financial assets are measured at fair value with changes in fair value recognized in comprehensive income and reclassified to earnings when derecognized or impaired. There were no changes to the measurement of existing financial assets and liabilities at the date of adoption.

(b) Derivatives

The Company uses various types of derivative financial instruments to manage risks associated with crude oil and natural gas price fluctuations. These instruments are not used for trading or speculative purposes. Proceeds and costs realized from holding the related contracts are recognized in petroleum and natural gas revenues at the time that each transaction under a contract is settled. For the unrealized portion of such contracts, the Company utilizes the fair value method of accounting. The fair value is based on an estimate of the amounts that would have been paid to or received from counterparts to settle these instruments given future market prices and other relevant factors. The method requires the fair value of the derivative financial instruments to be recorded at each balance sheet date with unrealized gains or losses on these contracts recorded through net earnings.

The Company has elected to account for its commodity sales and other non-financial contracts, which were entered into and continue to be held for the purpose of receipt or delivery of non-financial items in accordance with its expected purchase, sale or usage requirements as executory contracts on an accrual basis rather than as non-financial derivatives. Prior to adoption of the new standards, physical receipt and delivery contracts did not fall within the scope of the definition of a financial instrument and were also accounted for as executory contracts.

(c) Other Comprehensive Income

The new standards establish a new statement of comprehensive income, which is comprised of net earnings and other comprehensive income. As the Company currently has no other comprehensive income items requiring disclosure this statement of comprehensive income is not required.

Two new Canadian accounting standards have been issued that, commencing January 1, 2008, will require additional disclosure in the Company's financial statements about the Company's financial instruments, its capital, and how it is managed.



4. PROPERTY, PLANT AND EQUIPMENT

2007 2006
----------------------------------------------------------------------------
Oil and gas properties $ 293,531 $ 268,794
Other assets 622 568
----------------------------------------------------------------------------
294,153 269,362
Accumulated depletion and depreciation (137,742) (99,886)
----------------------------------------------------------------------------
Net book value $ 156,411 $ 169,476
----------------------------------------------------------------------------
----------------------------------------------------------------------------


During the year ended December 31, 2007, the Company capitalized $1.3 million (2006 - $1.2 million) of general and administrative expenses related to exploration and development activities. As at December 31, 2007, the depletion calculation excluded unproved properties of $6.8 million (2006 - $6.2 million) and included future development costs of proved reserves of $15.1 million (2006 - $9.5 million).

The Company has performed the ceiling test as of December 31, 2007. The impairment test was calculated using forecast prices as outlined in the following table and adjusted for commodity differentials specific to the Company:



----------------------------------------------------------------------------
Natural
Natural Gas Inflation Exchange
Crude Oil Gas Liquids Rates Rate
----------------------------------------------------------------------------
Lloyd
Edmonton Blend at Alberta
WTI Par Hardisty AECO Spot Pentanes
Year $/bbl US $/bbl Cdn $/bbl Cdn $/mmbtu + $/bbl %/year $US/$Cdn
----------------------------------------------------------------------------
2008 92.00 91.10 63.77 6.53 92.92 2.0 1.000
2009 88.00 87.10 60.97 7.33 88.84 2.0 1.000
2010 84.00 83.10 58.17 7.37 84.76 2.0 1.000
2011 82.00 81.10 56.77 7.37 82.72 2.0 1.000
2012 82.00 81.10 56.77 7.37 82.72 2.0 1.000
2013 82.00 81.10 57.58 7.37 82.72 2.0 1.000
2014 82.00 81.10 58.39 7.57 82.72 2.0 1.000
2015 82.00 81.10 59.20 7.74 82.72 2.0 1.000
2016 82.02 81.12 60.03 7.91 82.74 2.0 1.000
2017 83.66 82.76 61.24 8.08 84.42 2.0 1.000
2018+ +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr 2.0 1.000
----------------------------------------------------------------------------


5. GOODWILL

The Company reviewed the valuation of goodwill as of September 30, 2007 and determined that the book value of the goodwill exceeded the fair value of the goodwill due to the decline in the Company's market capitalization. Based upon this review, an impairment of goodwill of $7.8 million has been recorded as a non-cash charge to income as of September 30, 2007. There has been no impairment to the value of the Company's petroleum and natural gas assets.

6. ASSET RETIREMENT OBLIGATIONS

The Company's asset retirement obligations result from net ownership interests in petroleum and natural gas assets including well sites, gathering systems and processing facilities. As at December 31, 2007, the Company estimates the total undiscounted amount of cash flows required to settle its asset retirement obligations is approximately $29.1 million which will be incurred from 2007 to 2033. The majority of the costs will be incurred between 2012 and 2030. A credit-adjusted risk-free rate of eight percent was used to calculate the fair value of the asset retirement obligations.



A reconciliation of the asset retirement obligations is provided below:

2007 2006
----------------------------------------------------------------------------
Balance, beginning of year $ 8,587 $ 7,866
Accretion expense 702 632
Revisions to estimates - (351)
Obligations incurred 367 748
Actual abandonment cost (487) (308)
----------------------------------------------------------------------------
Balance, end of year $ 9,169 $ 8,587
----------------------------------------------------------------------------
----------------------------------------------------------------------------


7. BANK INDEBTEDNESS

As at December 31, 2007, the Company has a revolving demand credit facility with a maximum availability of $60.0 million. The interest rate at December 31, 2007 was prime plus 0.25 percent (6.25 percent) and subject to quarterly adjustment from time to time based on certain debt to cash flow ratios. The limit of the credit facility is subject to adjustments from time to time to reflect changes in Endev's asset base. There are no principal repayments required on the loan. The credit facility is secured by a $75.0 million fixed and floating charge over all the assets of the Company. The credit facility is reviewed periodically by the bank, with the next review scheduled for May 2008.

8. INCOME TAXES

The provision for income taxes differs from the result that would be obtained by applying the combined federal and provincial statutory tax rates to income before income taxes. This difference results from the following:



2007 2006
----------------------------------------------------------------------------
Income (loss) before income tax provision $ (13,476) $ 936
----------------------------------------------------------------------------
Statutory rates 32.27% 34.81%

Income tax provision computed at statutory rates $ (4,348) $ 326
Effect on income tax of:
Non-deductible crown charges - 1,235
Resource allowance - (839)
Impact of future income tax rate reductions (1,962) (2,800)
Write-down of goodwill 2,517 -
Other non-deductibles 1,117 335
----------------------------------------------------------------------------
Income tax expense (reduction) $ (2,676) $ (1,743)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The oil and gas properties owned by the Company have a tax basis of approximately $113.0 million (2006 - $108.3 million) available for future use as deductions from taxable income. Included in this tax basis are non-capital loss carry forwards of $5.0 million (2006 - $9.4 million) that expire over the next ten years.

Future income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. The components of the Company's future income tax assets and liabilities are as follows:



2007 2006
----------------------------------------------------------------------------
Net book value of capital assets in excess of tax pools $ 11,975 $ 18,120
Asset retirement obligations (2,301) (2,503)
Non-capital losses (1,817) (3,561)
Partnership income 8,812 7,289
----------------------------------------------------------------------------
Future income tax liability $ 16,669 $ 19,345
----------------------------------------------------------------------------
----------------------------------------------------------------------------


9. SHARE CAPITAL

The authorized share capital of the Company consists of an unlimited number
of common shares without nominal or par value.

Issued and outstanding Common shares Amount
----------------------------------------------------------------------------
Balance, December 31, 2005 88,059,223 $ 67,727
Options exercised 843,334 435
Contributed surplus associated with options
exercised - 15
----------------------------------------------------------------------------
Balance, December 31, 2006 88,902,557 68,177
Options exercised 486,500 246
Shares purchased and cancelled under normal course
issuer bid (412,500) (315)
----------------------------------------------------------------------------
Balance, December 31, 2007 88,976,557 $ 68,108
----------------------------------------------------------------------------


In October 2007, the Company announced approval of its normal course issuer bid ("NCIB") program to purchase for cancellation up to 7.3 million of its outstanding shares during the period October 9, 2007 through to October 8, 2008, subject to certain conditions. In the fourth quarter of 2007, 412,500 shares were purchased and cancelled at a total cost of $ 0.4 million. The average carrying value of the shares repurchased was recorded as a charge against share capital with the balance charged to contributed surplus.




The weighted average number of shares outstanding is as follows:

Three months ended December 31 Year ended December 31
2007 2006 2007 2006
----------------------------------------------------------------------------
Basic 89,324,742 88,902,557 89,223,559 88,645,870
Diluted 89,324,742 88,902,557 89,223,559 89,636,228
----------------------------------------------------------------------------


For the year ended December 31, 2007, 6,477,100 (2006 - 4,132,900) options were not included in the diluted earnings per share calculation because they were antidilutive.

The Company has a stock option plan where the Company may grant options for up to 10 percent of issued common stock to its directors, officers, employees and consultants. The exercise price of each stock option equals the average market price of the Company's stock for the five trading days prior to the date of the grant. The following table summarizes information about the stock option transactions for the year.




2007 2006
----------------------------------------------------------------------------
Weighted Weighted
Average Average
Number of Exercise Number of Exercise
Options Price Options Price
----------------------------------------------------------------------------
Stock options outstanding,
beginning of year 6,729,100 $ 1.32 4,991,500 $1.08
Granted 261,500 1.13 3,419,600 1.47
Exercised (486,500) 0.50 (843,334) 0.52
Settled and cancelled - - (400,000) 0.98
Forfeited or expired (27,000) 1.17 (438,666) 1.65
----------------------------------------------------------------------------
Stock options outstanding, end
of year 6,477,100 $ 1.37 6,729,100 $1.32
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Exercisable, end of year 5,081,566 $ 1.37 3,799,032 $1.23
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Options Outstanding Options Exercisable
----------------------------------------------------------------------------
Weighted
Weighted Remaining Weighted
Average Contractual Average
Range of Number Exercise Life Number Exercise
Exercise Prices Outstanding Price (years) Exercisable Price
----------------------------------------------------------------------------
$ 0.50 - $0.90 337,000 $0.89 1.7 329,000 $0.89
$ 1.05 - $1.30 3,371,100 1.16 4.5 2,549,900 1.16
$ 1.32 - $1.74 2,184,000 1.63 3.0 1,657,667 1.62
$ 1.77 - $2.10 585,000 1.90 2.8 545,000 1.88
----------------------------------------------------------
6,477,100 $1.37 3.7 5,081,566 $1.37
----------------------------------------------------------
----------------------------------------------------------


All options granted vest as to one-third upon date of grant and one-third on each of the first two anniversaries and expire five years after the grant date, except for 1,000,000 options granted on December 17, 2004 which expire ten years after the grant, 500,000 of which vest on the stock reaching certain target prices.

The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model with weighted average assumptions and resulting values for grants as follows:



Assumptions 2007 2006
----------------------------------------------------------------------------
Risk free interest rate (%) 5.2 5.71
Expected life (years) 5 5
Expected volatility (%) 51.9 47
Weighted average fair value of each option granted ($) 0.58 0.71
Dividend yield (%) - -


CONTRIBUTED SURPLUS
2007 2006
----------------------------------------------------------------------------
Balance, beginning of year $ 3,521 $ 1,785
Stock-based compensation expense 1,052 1,898
Cash settlement of stock options - (147)
Options exercised - (15)
Shares purchased and cancelled under normal course
issuer bid (40) -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance, end of year $ 4,533 $ 3,521
----------------------------------------------------------------------------
----------------------------------------------------------------------------


In July 2006 the Company settled and cancelled an aggregate of 400,000 outstanding vested stock options with a weighted average exercise price of $0.975 with a former employee. The former employee was paid $214,000 with respect to this settlement. The excess of the cash settlement over the grant date fair value of the options has been charged to retained earnings.

10. FINANCIAL INSTRUMENTS

(i) Fair Value of Financial Instruments

The Company's financial instruments consist of accounts receivable, accounts payable and accrued liabilities. As at December 31, 2007 the carrying value of these financial instruments approximated their fair value due to their short-term nature. The Company's bank indebtedness bears interest at a floating market rate and accordingly the fair market value approximates the carrying value. The fair value of commodity price contracts is shown below.

(ii) Foreign Currency Exchange Risk

The Company is exposed to foreign currency fluctuations as crude oil and natural gas prices are referenced in U.S. dollar denominated prices.

(iii) Credit Risk

Virtually all of the Company's accounts receivable are with customers involved in the oil and gas industry and are subject to normal industry credit risks. The carrying value of accounts receivable reflects management's best estimate of the credit risk associated with the Company's counterparties.

(iv) Interest Rate Risk

The Company is exposed to interest rate risk to the extent that bank debt is at a floating rate of interest.



(v) Commodity Price Contracts

As at December 31, 2007 the Company has the following commodity contracts:

----------------------------------------------------------------------------
Unrealized
Gain
Remaining (Loss) on
Product Volume Period Contract Price Contract
----------------------------------------------------------------------------
April -
Natural gas 2,000 GJ October Costless Floor $5.70/GJ
per day 2008 Collar Ceiling $6.75/GJ $ (102)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Crude oil 250 bbl January - Costless Floor US$65.00/bbl
WTI per day March 2008 Collar Ceiling US$86.50/bbl (221)
----------------------------------------------------------------
Crude oil 200 bbl April - Costless Floor Cdn$75.00/bbl
WTI per day June 2008 Collar Ceiling Cdn$105.00/bbl (26)
----------------------------------------------------------------------------

Total crude oil (247)
----------------------------------------------------------------------------
Total unrealized gain (loss) $ (349)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


At December 31, 2006 the Company had an unrealized gain on commodity contracts of $0.3 million.

During the period ended December 31, 2007 the financial price risk management program of the Company resulted in the following realized and unrealized gains and losses:



Three months ended Dec 31 Year ended Dec 31
2007 2006 2007 2006
----------------------------------------------------------------------------
Realized gain (loss) on commodity
contracts $ (74) $ - $ 524 $ -
Unrealized gain (loss) on commodity
contracts (477) 312 (661) 312
----------------------------------------------------------------------------
$ (551) $ 312 $ (137) $ 312
----------------------------------------------------------------------------
----------------------------------------------------------------------------


11. SUPPLEMENTAL CASH FLOW INFORMATION

Changes in non-cash working capital

Three months ended Year ended
December 31 December 31
2007 2006 2007 2006
----------------------------------------------------------------------------
Accounts receivable $ (1,666) $ (2,877) $ 2,032 $ 258
Prepaid expenses and deposits (805) 279 (859) (163)
Accounts payable and accrued
liabilities 1,242 (1,070) (1,407) 1,478
----------------------------------------------------------------------------
Change in non-cash working capital $ (1,229) $ (3,668) $ (234) $ 1,573
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Relating to:
Operating activities $ (310) $ 1,996 $ 2,070 $ 37
Investing activities $ (919) $ (5,664) $ (2,304) $ 1,536
----------------------------------------------------------------------------
----------------------------------------------------------------------------


12. COMMITMENTS

The Company is committed to a lease agreement for office premises until
March 31, 2012. The future rentals payable including estimated operating
costs are summarized in the following table:

2008 $ 581
2009 588
2010 595
2011 602
2012 153
----------------------------------------------------------------------------
Total $ 2,519
----------------------------------------------------------------------------
----------------------------------------------------------------------------


13. SUBSEQUENT EVENTS

Subsequent to December 31, 2007 the Company entered into additional natural
gas contracts as follows:

----------------------------------------------------------------------------
Product Volume Period Contract Price
----------------------------------------------------------------------------
Natural gas 2000 GJ April to Costless Floor $6.00/GJ
per day October 2008 Collar Ceiling $7.30/GJ
Natural gas 2000 GJ April to Costless Floor $6.00/GJ
per day October 2008 Collar Ceiling $8.00/GJ
Natural gas 2000 GJ April to Costless Floor $6.25/GJ
per day October 2008 Collar Ceiling $8.45/GJ
----------------------------------------------------------------------------


14. COMPARATIVE FINANCIAL STATEMENTS

Certain prior years' comparative figures have been restated to conform to the current year's presentation.

Endev Energy Inc. is a Canadian oil and gas exploration and production company based in Calgary, Alberta. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol ENE.

The Toronto Stock Exchange has neither approved nor disapproved of the contents of this release.

Contact Information

  • Endev Energy Inc.
    Cameron MacGillivray
    President and CEO
    (403) 750-2600 or Toll Free: 1-888-750-2677
    or
    Endev Energy Inc.
    Scott Bonli, C.A.
    Vice President, Finance and CFO
    (403) 750-2600 or Toll Free: 1-888-750-2677
    Email: info@endevenergy.com