EnQuest Lowers Production Target for 2011

- EnQuest Lowers Production Target for 2011

Friday, September 02, 2011
EnQuest plc

EnQuest updated its production targets for the full year 2011. The S7 production well in the Conrie field, discovered earlier this year, and the S8Z well in area 6 of the Don Southwest field both started production during August 2011. The S7 Conrie well came on production at lower than expected rates. The S8Z well started production at the expected initial rate, but has declined more quickly than anticipated. EnQuest is in the process of testing and assessing the well results. EnQuest does not expect a material change in ultimate recovery of reserves in the Don Southwest field and is studying whether a further well or sidetrack is needed.

As a result of the production uncertainty on both wells, EnQuest expects average production for the full year 2011 in a range between 23,000 Boepd to 24,500 Boepd.

Alma Development Project

EnQuest has submitted the first draft of the proposed Field Development Plan ('FDP') for the Alma (formerly Ardmore) Development in the Central North Sea. This first draft FDP has been submitted to DECC specifically for the Alma field, with a separate FDP to follow shortly for the Galia (formerly Duncan) field; final approval of these FDP's is anticipated in time for full project sanction before year end. If approved, the project is scheduled to start production in the second half of 2013; peak production is expected to be in excess of 20,000 Boepd. EnQuest is looking forward to being in a position to provide full details on the Alma and Galia development project following full project sanction.

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EnQuest Welcomes Non-Executive Director

- EnQuest Welcomes Non-Executive Director

Tuesday, June 14, 2011
EnQuest plc

EnQuest announced the appointment of Clare Spottiswoode CBE as a Non-Executive Director with effect from July 1, 2011.

Clare has held a number of senior positions in the energy sector including most recently serving as a non-executive director of Tullow Oil PLC in addition to previous roles as Deputy Chairman of British Energy PLC and Director General of Ofgas. She is currently Chairman of Gas Strategies Consulting Ltd and EnergySolutions Inc and serves as a non-executive director at G4S plc and Ilika PLC. Clare is also a member of the Independent Commission on Banking for the UK Treasury.

James Buckee, Chairman of EnQuest, said, "I am delighted to welcome Clare to EnQuest as a Non-Executive Director. Clare's wealth of experience from both within and beyond the energy industry will make her an invaluable addition to the Board. I look forward to working with her as EnQuest continues to develop and execute its strategy."

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EnQuest Seeks Tax Allowances to Develop Small Oilfields

EnQuest Seeks Tax Allowances to Develop Small Oilfields

Tuesday, April 05, 2011
Dow Jones Newswires

by  Iain Packham

EnQuest will look into developing small, so far commercially unviable, oil and gas fields in the North Sea if the U.K. government offers incentives to offset the U.K. tax hike on oil production, Chief Executive Amjad Bseisu said Tuesday.

Bseisu told journalists on a conference call that the firm is discussing the matter with the government, but didn't go into further detail.

EnQuest will continue to study options outside of the U.K. if the tax regime here isn't palatable, he said.

Bseisu said that one positive effect from the tax hike is that other companies are looking to sell their U.K. North Sea assets. Prices--especially where large amounts of capital are required for development --have fallen in the last few weeks, he noted.

"We will continue to look at acquisitions in the U.K. and I think we will be able to succeed in acquiring either assets or companies," the CEO said. EnQuest doesn't have any specific targets as yet, but is examining opportunities and has a lot of firepower, he added.
Bseisu said the firm has "cash flow of several hundred million and credit lines of several hundred million," and so could manage an acquisition in the half billion-to-billion dollar range quite easily.

The group's 2010 pretax profit soared to $55.8 million, from $11.0 million in 2009 and revenue rose to $583.5 million from $234.0 million, as oil and gas prices and oil and gas production levels rose significantly.

The company has raised its 2011 production target by 26% to 26,500 barrels of oil equivalent a day, after 2010 pro forma average production increased 55% to 21,074 BOE/D. Bseisu said he is confident of meeting the 2011 target organically.

EnQuest's proven-plus-probable reserves rose around 10% to 88.5 million barrels of oil equivalent.

The company has earmarked around $300 million for capital expenditure in 2011, with $250 million to go on development drilling and facilities and $50 million on exploration and appraisal. In 2010, capital expenditure was around $196.3 million on a pro forma basis.
At the end of 2010, the company had net cash of $41.4 million, after repaying $88.8 million of net debt.