Last checked at 17 May 2010 07:00
ENQUEST PLC, 17 May 2010
Interim Management Statement
EnQuest PLC, an independent oil and gas production & development company geographically focused on the UK Continental Shelf, today publishes an Interim Management Statement for the period* to 17 May 2010, in accordance with its disclosure requirements.
HIGHLIGHTS*
- EnQuest reaffirms it is on track to produce approximately 18,000 bopd in calendar year 2010
- First Oil from the Don Southwest DR2z sidetrack commenced production in March 2010
- Combined oil production from the Don Fields commenced export via an Up and Over service over the Thistle platform in March and offshore loading was discontinued
- Production recommenced from Well A46 at 600 bopd on Thistle following a successful workover and jet pump installation
- The Broom North West Terrace well spudded on the 11 May 2010
- The drilling rig to drill the third Don SW production well started mobilising to site on the 10May 2010
* Note: On 5 & 6 April 2010 the newly incorporated independent entity EnQuest PLC acquired the demerged UK North Sea assets of Petrofac Limited and Lundin Petroleum AB respectively - further details are available in the Prospectus published by EnQuest PLC on 18 March 2010. Today's statement includes comments and data with respect to the calendar year to 17 May 2010 - it therefore also includes comments in connection with the period prior to the formation of EnQuest PLC.
Amjad Bseisu, Chief Executive, said
"It is a little over one month since EnQuest PLC came into independent existence and listed on the London Stock Exchange and NASDAX OMX Stockholm. We have been working hard on integrating the company into one team focused on delivering our execution and growth targets. We see significant opportunities ahead for organic and inorganic growth and our expectations at listing have been reinforced."
Pro-Forma EnQuest Production Update
| Period | Daily Average | Cumulative |
|
| Net production (bopd) | Net production (bbls) |
| 1 January 2010 to 30 April 2010 | 16,340 | 1,960,774 |
Summary
Drilling in 2010 is proceeding according to programme. The second of the Don Southwest production wells (DR2z) came on stream in early March, following the drilling of a sidetrack well. Production from both Don Southwest and West Don benefited significantly from the conversion to pipeline export (via the Thistle platform) from tanker export operations; export system uptime has increased by approximately 20% in the first month of this mode of operation. At Thistle, the first workover well A46 has been successfully completed adding an additional 600 bopd to production with the fitting of a jet pump to assist with lift. At Broom, the pipeline augmentation project continues, with key offshore construction activities due to start late in the second quarter of 2010.
OUTLOOK
Year-to-date production has been in line with our expectations; key operational activities are scheduled to be completed during Q2, Q3 and Q4, with new wells to be brought on stream on Don Southwest, Broom and Thistle.
EnQuest management remains confident of achieving its overall 2010 net production target guidance of 18,000 bopd; representing growth of 30% over 2009.
Note: EnQuest recently published extensive information on the performance of its business - as part of its Prospectus, ahead of the commencement of trading in EnQuest PLC shares on 6 April 2010. The prospectus can be obtained via www.enquest.com.
Ends
For further information please contact:
EnQuest PLC Tel: +44 (0)20 7925 4943
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 PLC (www.enquest.com) is an independent oil & gas production and development company focused on the UK Continental Shelf ("UKCS"). On 6 April 2010, EnQuest was formed from the demerged UK North Sea assets of Petrofac Limited and Lundin Petroleum AB. EnQuest was admitted to trading on both the London Stock Exchange and the NASDAQ OMX Stockholm. On listing, EnQuest PLC went into 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 16 production licences covering 26 blocks or part blocks in the UKCS, of which 15 licenses 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, rather than exploitation of high-risk exploration opportunities.
EnQuest intends to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercialising and developing discoveries, converting its significant contingent resources into reserves and pursuing selective acquisitions. EnQuest is focused on increasing production from its existing assets in its core hub areas. It believes that it has excellent operational, execution, subsurface and integration skills and it seeks to become the development partner of choice in the UKCS.
EnQuest believes that it has the technical skills, the operational scale and the financial strength to achieve its objectives and to take advantage of the production and development opportunities in the UKCS.