Last checked at 30 Jun 2011 15:17
EnQuest completes acquisition of majority equity stake and assumes operatorship of both Crawford and Porter developments
30 June 2011
EnQuest PLC is pleased to confirm the completion of its farm in agreement with Fairfield Acer Limited ('Fairfield') for UKCS Block 9/28a - Area B, which contains the Crawford oil field and the 9/28a -18 Porter oil discovery. This agreement was announced on 10 May 2011. Prior to this farm in, EnQuest already held a 19% interest in the block and with this transaction it has acquired a further 32% interest, in return for carrying Fairfield for certain development costs up to a maximum of £34.85 million. The Crawford field and Porter had gross 2P reserves of 26.8 MMboe as determined at the end of 2010.
EnQuest's combined working interest has now increased to 51% and EnQuest has become the operator. Based on the determination as at the end of 2010, EnQuest's net 2P reserves would be increased by 8.6 MMboe. Fairfield retains a 20% interest in the block, the remaining 29% interest is held by Valiant Exploration Limited.
Ends
For further information please contact:
EnQuest PLC Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Jonathan Swinney (Chief Financial Officer)
Michael Waring (Head of Communications & Investor Relations)
Finsbury Tel: +44 (0)20 7251 3801
Andrew Mitchell
Conor McClafferty
Notes to editors
EnQuest is the largest UK independent producer in the UK North Sea. EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. It is a constituent of the FTSE 250 index and OMX Nordix index. Its assets include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields. It has interests in 26 production licences covering 34 blocks or part blocks in the UKCS, of which 21 licences are operated by EnQuest.
EnQuest believes that the UKCS represents a significant hydrocarbon basin in a low-risk region, which continues to benefit from an extensive installed infrastructure base and skilled labour. EnQuest believes that its assets offer material organic growth opportunities, driven by exploitation of current infrastructure on the UKCS and the development of low risk near field opportunities.
Forward looking statements: This announcement may contain certain forward-looking statements with respect to EnQuest's expectation and plans, strategy, management's objectives, future performance, production, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this presentation should be construed as a profit forecast. Past share performance cannot be relied on as a guide to future performance.