Monday 3 December 2018

EnQuest PLC is pleased to announce that it has completed the acquisition of the remaining 75% interest in the Magnus oil field, an additional 9.0% interest in the Sullom Voe Oil terminal and supply facility (‘SVT’) and additional interests in associated infrastructure from BP as planned.

As outlined in the announcement on 7 September 2018, the addition of Magnus is expected to add:

- approximately 60 MMboe of 2P reserves (equating to approximately 30 per cent. of the Group’s reserve base) as at 1 January 2018;

- approximately 10 MMboe of 2C resources (equating to approximately 6 per cent. of the Group’s resource base) as at 1 January 2018; and

- approximately $500 million of net present value to the Group at $70/bbl long-term oil price, as outlined in the Competent Person’s Report on Magnus included in the Prospectus dated 7 September 2018

With an effective economic date of 1 January 2017, it is estimated that the net amount financed by BP and to be repaid out of the future cash flows from the 75% interest in Magnus is around $100 million (subject to customary completion adjustments). EnQuest has also paid its $100 million cash contribution of the consideration from the funds received through the Rights Issue undertaken in October.

EnQuest now has a 100.0% equity stake in Magnus, 15.1% in SVT, 18.0% in the Ninian Pipeline System and 41.9% in the Northern Leg Gas Pipeline.

This acquisition and the associated details of the transaction were announced on 7 September 2018.