Interim Management Statement

RNS Number : 7903G

EnQuest PLC

18 May 2011

 



EnQuest PLC, 18 May 2011

Interim Management Statement

Highlights

EnQuest is on track to achieve its 2011 average production target of 26,500 Boepd, 26% above 2010:

-     Production in the first four months averaged 25,402 Boepd, up 55% on the equivalent 2010 period

-     The Thistle NWFB-P1 well came in better than prognosis and was drilled ahead of schedule and on budget

-     The Don Southwest S8 producer and S9 injector wells were also better than prognosis and  were drilled ahead of schedule and on budget

-     The Area E exploration well at Don Southwest was successful, it is now called the Conrie field.  It is scheduled to come onstream in the fourth quarter of 2011

EnQuest recently announced an agreement to acquire 32% of the Crawford and Porter fields, taking the working interest to 51% and assuming operatorship of the development

EnQuest CEO Amjad Bseisu said:

"EnQuest's production and operational performance remains on track, with a busy period ahead of us to achieve our 26% growth target for the year.  We also continue to work towards a possible sanction of the Ardmore field this year.  Last week, EnQuest agreed a farm in to Crawford, whereby our position will be consolidated both by an increase in our equity to 51% and by our new role as operator.  We are working towards sanction of this development during 2012.

We have previously stated that we were disappointed with the UK budget increase in the supplementary charge on North Sea oil and gas production.  We, and the industry, continue discussions with the government, seeking ways to mitigate the impact on investment. There remains significant potential in our development and production programme.  We are confident in our ability to deliver EnQuest's growth objectives from our UKCS production and from further afield."

Production

	Reported Daily Average	Pro-forma* Daily Average		Reported Cumulative	Pro-forma* Cumulative
	1 Jan 2011 to 30 April 2011		1 Jan 2010 to 30 April 2010	1 Jan 2011 to 30 April 2011	1 Jan 2010 to 30 April 2010
	Net production (Boepd)	Net production (Boepd)		Net production (Bbls)	Net production (Bbls)
Thistle/Deveron	4,738	4,177		568,501	501,235
The Don Fields	15,313	7,070		1,837,532	848,412
Heather/Broom	5,352	5,093		642,180	611,127
Total	25,402	16,340		3,048,253	1,960,774

* 'Pro-forma' data reflects the production results for 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 in 2011. For further details see the 'Pro-forma note' in EnQuest's 2010 Full Year Results.

Detailed Summary

-     Well A56/13 (formerly NWFB-P1) was drilled from the Thistle platform and reached its target depth in early April 2011.  The reservoir units penetrated were as expected.  The well is currently being completed and is expected to commence production later in the second quarter of 2011

-     The Don Southwest production well S8 was completed in mid April in Area 6. The well was executed according to plan despite challenging weather conditions. Sand quality was better than prognosed. The well will be tied in to the subsea system and brought into production after the rig leaves Don Southwest in the third quarter of 2011.  The rig is currently completing the Area 6 injection well S9, which will start injection in the third quarter

-     EnQuest's realised sales oil price to the end of April was $105.19, reflecting the combined effect of the oil price and of the 2011 hedge position

Outlook

Year to date production has been in line with our expectations.  EnQuest's active eight well drilling programme for 2011 continues, with five production wells scheduled to come onstream during the year, one on Don Southwest, one on Conrie and three on Thistle.

EnQuest remains confident of achieving its overall 2011 net production target guidance of 26,500 Boepd, representing growth of 26% on 2010. 

Ends

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)                                              

Finsbury                                                                                         Tel: [phone]

Andrew Mitchell

Conor McClafferty

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 and OMX Nordix index.  Its assets include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields.  It has interests in 26 production licences covering 34 blocks or part blocks in the UKCS, of which 21 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's 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 performance cannot be relied on as a guide to future performance.

 

END

 

 

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