EnQuest PLC: Interim Management Statement

STOCKHOLM--()--Regulatory News:

PRODUCTION AND MAJOR PROJECTS ON TRACK

PRODUCTION SUMMARY

EnQuest (STO:ENQ):

Production from 1 January to 30 April 2013 averaged 20,494 Boepd, reflecting the third party shutdowns of the Brent pipeline in Q1 2013. EnQuest confirms production guidance of between 22,000 Boepd and 27,000 Boepd for the full year.

Amjad Bseisu, Chief Executive, said

"EnQuest's growth and execution remain on course. We are on track to submit the field development plan ('FDP') for Kraken by mid-year and to sanction the project later in 2013. The well results in north Kraken are in line with expectations and give further confidence in the field development. We completed our acquisition of 8% of the Alba field in Q1 2013, which has similar characteristics to Kraken. Alba adds four non-operated wells to the twelve wells that EnQuest had originally planned for 2013. The Alma/Galia project remains on track for first production in Q4 2013 and dry dock work on the vessel is now complete. With the increase in scope for a potential second phase, our schedule is challenging but achievable. Since the publication of our 2012 results, production continues to be in line with our guidance, driving strong cash flow generation.

We continue to look at opportunities to acquire assets in the UK, as well as other regions, such as in the Norwegian North Sea, South East Asia and North Africa, where our expertise and capabilities can be applied to maturing assets and development opportunities."

INTERIM MANAGEMENT STATEMENT HIGHLIGHTS

  • Alma/Galia. The Alma/Galia development project remains on track for the production of first oil in Q4 2013. The main elements of the subsea system are now in place and the EnQuest Producer vessel has left dry dock on schedule and is now alongside the quay in Hamburg for the remainder of the work.
  • Kraken. EnQuest remains on track for submission of the Kraken FDP in Q2 2013. Subject to anticipated regulatory approval, EnQuest's sanction of the Kraken development is expected later in 2013. An appraisal well has been drilled at Kraken and confirms the north Kraken area.

Net Production

    Daily average1 Jan' 2013 to
30 April 2013
  Daily average1 Jan' 2012 to
30 April 2012
(Boepd) (Boepd)
Thistle/Deveron 4,614 7,408
Dons 11,401 9,161
Heather/Broom 4,080 4,407
Alba 399* -
Total 20,494 20,976

* Net production since the completion of the acquisition at the end of March 2013, averaged over the four months to the end of April.

Further details

  • Thistle/Deveron. Production was down year on year due to the shutdown of the third party Brent pipeline, as well as water injection downtime due to an outage of the old 'B' turbine generator and to commissioning of the new 'D' turbine. Water injection has been re-instated following commissioning of the new D turbine and refurbishment of the B turbine should be completed in June 2013. Drilling is currently underway on the next production well in the Western Fault block
  • Dons. Although the Don fields were also impacted by the Brent pipeline shutdowns, the West Don W6/W4 producer/injector pair performed well, following the tie-in of the new W6 injector well in Q1 2013. This contributed to 25% year-on-year production growth from the Don fields. The Don Southwest Area 6 DS producer is scheduled to be brought online in Q2 2013, with an associated water injector to be drilled later in the year
  • Heather/Broom. The drilling programme at Heather will start in Q3 2013, following the completion of drilling on Thistle and the commissioning of the refurbished rig on Heather. The Broom field has been performing as expected
  • Alba. Platform well A38z (S36) is currently being drilled, part of a 2013 programme which includes three platform wells and one subsea well

Alma/Galia

  • Following the batch drilling of six wells in 2012, the manifold and subsea 'Xmas tree' systems were installed in Q2 2013 and the umbilical and the riser installation projects are underway. The mooring pile fabrication has also been completed
  • In Hamburg, work continues on the EnQuest Producer 'FPSO' (Floating Production, Storage and Offloading vessel). The vessel has now left dry dock and moved to the quay. The Electric Power Module and Process Module have been lifted onto the FPSO. The Boiler Module has been completed and is en route to Hamburg. Work continues on the Degasser and the Water Injection Modules

Kraken

  • The results of the appraisal well drilled in Q2 2013 confirm the north Kraken area. The reservoir is oil filled and the thickness of the sand is as expected. PVT (fluid) samples have been taken for analysis

ENDS

Notes to editors

EnQuest is the largest UK independent producer in the UK North Sea. EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. It is a constituent of the FTSE 250 index. Its assets include the Thistle, Deveron, Heather, Broom, West Don, Don Southwest and Conrie producing fields and the Alma and Galia development. At the end of 2012, including the licences EnQuest was offered through the UK's 27th Licensing Round, EnQuest had interests in 39 production licences covering 55 blocks or part blocks in the UKCS, of which 31 licences are operated by EnQuest. In addition, EnQuest also has an interest in two blocks offshore in Sabah, Malaysia.

EnQuest believes that the UKCS represents a significant hydrocarbon basin in a low risk region, which continues to benefit from an extensive installed infrastructure base and skilled labour. EnQuest believes that its assets offer material organic growth opportunities, driven by exploitation of current infrastructure on the UKCS and the development of low risk near field opportunities.

Forward looking statements: This announcement may contain certain forward-looking statements with respect to EnQuest's expectation and plans, strategy, management's objectives, future performance, production, costs, revenues, reserves and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this presentation should be construed as a profit forecast. Past share performance cannot be relied on as a guide to future performance.

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Contacts

EnQuest PLC Tel
Michael Waring (Head of Communications & Investor Relations)
+44 (0)20 7925 4900
or
RLM Finsbury Tel
James Murgatroyd Conor McClafferty Dorothy Burwell
+44 (0)20 7251 3801

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Contacts

EnQuest PLC Tel
Michael Waring (Head of Communications & Investor Relations)
+44 (0)20 7925 4900
or
RLM Finsbury Tel
James Murgatroyd Conor McClafferty Dorothy Burwell
+44 (0)20 7251 3801