(Alliance News) - Enquest PLC on Tuesday said it recorded an increase in 2019 production, helped by continued strong performance at its Magnus oilfield and improved average gross production at the Kraken field.
The stock was trading 6.0% higher at 25.06 pence each on Tuesday morning in London.
The petroleum exploration and production company reported average production of 68,606 barrels of oil equivalent per day in 2019, up 24% from 55,447 barrels in 2018 and towards the higher end of 2019 guidance which was set at 70,000 barrels of oil.
The growth was aided by "strong performance" by its Magnus oilfield in the UK North Sea, which had a production efficiency of more than 80%, and Kraken for which the company recorded an average gross production of 35,704 barrels of oil per day which is above the top end of guidance.
For 2018, average gross production at the Kraken field totalled 30,310 barrels of oil equivalent a day.
Production on the Thistle and Heather fields were impacted by shutdowns in the final quarter of 2019.
"The group has again delivered on its operational targets, growing production by 24%. Kraken performance in particular has been excellent, with production efficiency above 90% for much of the second half of the year," said EnQuest Chief Executive Amjad Bseisu.
Looking forward, Enquest said it expects its average net group production in 2020 to be between 61,000 barrels of oil equivalent per day and 68,000 barrels. Kraken gross production is expected to be between 30,000 barrels of oil per day and 35,000 barrels.
"Group production for 2020 reflects natural decline rates and the impact of the ongoing shutdowns at Thistle and Heather, which are expected to be partially offset by the new wells being drilled at Magnus and Kraken," Bseisu said.
As at December 31, EnQuest had net debt of USD1.41 billion, with cash and available bank facilities of USD289 million. In comparison, at the end of 2018, the company net debt of USD1.77 billion, with cash and available bank facilities of USD309 million.
The company's 2019 results will be published on March 26.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Enquest (ENQ)