Enquest PLC, 19 May 2016 Operational Update
Thursday 19 May 2016
Highlights
Production averaged 42,752 Boepd for the four months to the end of April 2016, up 39% on 2015; average production in April was 45,933 Boepd, benefitting from improving well performance at Alma/Galia. 2016 production from the rest of EnQuest's North Sea fields was up 19% year on year, with Malaysia up 27%. This reflected continuing high levels of production efficiency.
Full year production guidance is reiterated at between 44,000 Boepd and 48,000 Boepd.
The Kraken development project continues on schedule. The Scolty/Crathes tie-back development is also on schedule. Drilling is ahead of programme and under budget. The Scolty well was as expected and the Crathes reservoir was ahead of expectations.
Alma/Galia production now has six production wells available. Average net production of 9,017 Boepd was realised in April. Good uptimes are being delivered and average production volumes are expected to increase with performance enhancements such as acidisation being undertaken.
EnQuest is well on track to meet its cost reduction targets of delivering unit opex in the range $25 - 27/bbl overall for 2016, and into the low $20s after the Kraken development is fully onstream.
The time saved from the excellent drilling performance on Scolty/Crathes, has created the opportunity to accelerate drilling of the Eagle prospect into Q2/Q3 2016.
As at 30 April 2016, EnQuest's net debt was approximately $1.63 billion.
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