Interim Management Statement

RNS Number : 1631S

EnQuest PLC

16 November 2011

 



ENQUEST PLC, 16 November 2011

Interim Management Statement

HIGHLIGHTS

Production to the end of October averaged 23,944 Boepd, up 20% on the 19,876 Boepd for the equivalent 2010 period; EnQuest confirms it is on track to deliver its latest guidance for full year average 2011 production of between 23,000 Boepd and 24,500 Boepd

·      The Thistle well A57/58 was completed and is producing over 1,500 Boepd, in line with expectations

·      Operations have started on Dev-P1, the first well in the Deveron field for over 20 years

·      Production from the recently drilled S8z and S9 producer injector pair on Don Southwest has stabilised at approximately 5,000 Boepd

·      The Ivy exploration well was a dry hole

·      The Crathes exploration well spudded in early November, drilling is ongoing

·      The exploration well on the non-operated Tudor Rose discovery spuds this week

·      EnQuest's sanction of the Alma/Galia development is expected before the end of 2011

Amjad Bseisu, Chief Executive, said

"I am pleased to report that EnQuest continues its growth with a 20% year on year production increase to the end of October 2011, all three of our hubs achieved strong production growth over the same period in 2010.  EnQuest is now concluding its active ten well drilling programme for 2011, five new production wells have been brought onstream during the year, one on Don Southwest, one on Conrie and three on Thistle.

In 2011, EnQuest has further consolidated its positions, with increased interests in the Broom field and the Crawford block helping to drive strong growth in our net reserves.  EnQuest continues to be active in assessing potential business development opportunities. 

We remain on track to achieve our revised full year production target, delivering mid-range growth of 13% over 2010.  Our project execution team is also on track to deliver EnQuest's sanction of the Alma and Galia development before the end of this year."

Net Production

	Reported Daily Average	Pro-forma* Daily Average	Reported Cumulative	Pro-forma* Cumulative
	1 Jan' 2011 to 31 Oct' 2011	1 Jan' 2010 to 31 Oct' 2010	1 Jan' 2011 to 31 Oct' 2011	1 Jan' 2010 to 31 Oct' 2010
	Net production (Boepd)	Net production (Boepd)	Net production (Bbls)	Net production (Bbls)
Thistle/Deveron	5,246	4,737	1,594,868	1,440,117
Dons/Conrie	13,145	10,612	3,996,200	3,225,916
Heather/Broom	5,553	4,527	1,688,208	1,376,188
Total	23,944	19,876	7,279,276	6,042,221

* 'Pro-forma' data reflects the production results for the relevant calendar months of 2010, as if the assets previously owned by Petrofac Limited and Lundin Petroleum AB were owned by EnQuest throughout the period - as they have been in 2011 and as they will be reported for 2011.  For further details see 'Pro-forma note' in EnQuest's 2010 Full Year Results.

Additional Information

·      The latest Thistle well A57/58, formerly known as EFB-P1, was completed in the eastern fault block of the Thistle field in the middle of October.  The well is producing in excess of 1,500 Boepd. To date all three new Thistle wells have met or exceeded expectations

·      The Thistle power project is underway and a new 30 MW gas turbine will be operational in Q4'12.  This follows lower than anticipated power availability in 2011

·      On Deveron, operations have started on the first well to be drilled in over 20 years.  The well will be completed with electrical submersible pumps

·      Former production well A16/26 has been worked over to provide injection support in the south of the main fault block in the Thistle field.  Drilling has been completed and the well should be commissioned in Q4'11

·      Don Southwest.  Production from the recently drilled producer injector pair (S8z and S9) has now stabilised at approximately 5,000 Boepd.  There is no need to sidetrack these wells at the current time

·      An exploration well was drilled on the Ivy prospect but was unsuccessful.  The well was drilled within the targeted time and the reservoir encountered was as prognosed, but no porosity or permeability was present

·      Offshore work continued on upgrading the Heather drilling rig, to be ready for drilling to start in 2012

·      EnQuest's realised sales oil price to the end of October was $107.5 per Boe, reflecting the combined effect of the oil price and of the 2011 hedge position; the invoiced oil price to the end of October was $112.1 per Boe

IMS Ends

Broker appointment

EnQuest is also pleased to announce today the appointment of Merrill Lynch International as joint corporate broker, with immediate effect.

For further information please contact:

EnQuest PLC                                                                                  Tel: [phone]

Amjad Bseisu (Chief Executive)

Jonathan Swinney (Chief Financial Officer)

Michael Waring (Head of Communications & Investor Relations)                                              

RLM Finsbury                                                                                 Tel: [phone]

James Murgatroyd

Conor McClafferty

Dorothy Burwell

Notes to editors

EnQuest PLC (www.enquest.com) is the largest UK independent producer in the UK North Sea.  It is a constituent of the FTSE 250 index and the OMX Nordix.  Its assets include the Thistle, Deveron, Heather, Broom, West Don, Don Southwest and Conrie fields.   At the end of the first half of 2011, EnQuest had interests in 20 production licences covering 25 blocks in the UKCS, of which 18 licences are operated by EnQuest.

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 objectives, future performance, production, costs, revenues 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 price performance cannot be relied on as a guide to future performance.

 

END

 

 

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