EnQuest take on Kraken Reserves12 Mar 2019 09:07
EnQuest PLC, 12 March 2019
Kraken 2P reserves
Earlier today, Cairn announced their full year results which included a 2P reserve downgrade and associated non-cash impairment charge at Kraken. As operator of Kraken, and following an independent third-party audit of the Group's reserves position at 31 December 2018, EnQuest can confirm its estimate of Kraken's 2P reserves, remain materially unchanged.
EnQuest and Cairn utilise different technical approaches to Kraken production forecasting in preparing their reserve profiles for their respective auditors, which has led to this difference in reserves estimates.
While the Group's audit of the 2018 financial results is not yet complete, the Group does not expect to recognise any impairment charge related to the Kraken asset.
Cairn's cautious approach to impairment augers well for the future.